Foreign Buyer Checklist

IsraelHomeAdvisor helps international buyers navigate the process of purchasing property in Israel. From legal checks and financing to taxes, fees, and property management, we provide expert guidance every step of the way, ensuring a smooth and confident home-buying experience.

Legal Eligibility

Foreigners can purchase property in Israel; residency is not required.
Some land, particularly state-owned plots, may require approval from the Israel Lands Authority.
A power of attorney can allow signing documents if you cannot be in Israel in person.

Taxes at Purchase

Purchase Tax (Mas Rechisha):

Foreign buyers generally pay higher rates than Israeli residents.
Residential example (approximate):
Up to ILS 5,290,000 → 10%
Above ILS 5,290,000 → 10–15%
First-home exemptions do not apply to foreigners.

Value Added Tax (VAT):

17% VAT on new apartments from developers.
No VAT on resale properties.

Annual Property Taxes:

Arnona (municipal tax) based on size and location.
Minor additional fees may apply (communal or maintenance).

Financing & Mortgage

Many Israeli banks provide mortgages to foreigners but with:

Higher down payments (30–50%)
Higher interest rates
Proof of income and possibly international tax documents

Cash purchases are common for foreign buyers.

Capital Gains & Future Taxes

Capital gains tax applies on future sales: 25–33%.
Rental income is taxable in Israel: 10–25%.
First-home tax benefits available to Israelis do not apply.

Legal Advisory & Support

Hire a local lawyer to review contracts and verify property registration.
Consider a real estate agent and mortgage/financial advisor.
Translation services may be required for legal documents.

Transaction Timeline Differences

Slightly longer than for Israeli buyers due to:
International fund transfers
Document verification
Coordination with lawyers, banks, and authorities

Points to Consider

Plan for full-service guidance: legal, financial, and property management.
Be aware of all fees upfront: taxes, VAT, Arnona, legal, and bank charges.
Understand future capital gains and rental taxation.
Ensure trustworthy local partners before making a commitment.