Can any foreigner buy property in Israel?

Yes. Israel has no restrictions on foreign nationals purchasing real estate. Both Jewish and non-Jewish foreigners may purchase property freely, subject to the same legal process as Israeli citizens.

Do I need to be present in Israel to complete the purchase?

Not necessarily. You can grant Power of Attorney (Iyuv) to your Israeli lawyer, who can sign documents and complete the transaction on your behalf. This is common for diaspora buyers.

What is the purchase tax rate for Olim?

New Olim receive a significant purchase tax exemption on their first property in Israel. The exemption applies up to a certain property value (updated annually by the Tax Authority). Above that threshold, a reduced rate applies. Your lawyer will calculate the exact amount.

How long does the buying process take?

From finding a property to completing registration, the process typically takes 2–4 months for a resale property. New construction projects may involve longer timelines tied to building completion.

Can I get an Israeli mortgage as a non-resident?

Yes, though conditions are stricter. Non-residents are generally limited to 50% Loan-to-Value (LTV), compared to up to 75% for Israeli residents purchasing a first home. You will need to provide extensive income documentation.

Do I need to open an Israeli bank account?

Yes. Funds for property purchases must flow through an Israeli bank account. Opening an account as a non-resident is possible but requires in-person visits and documentation. Olim can open accounts before arriving in Israel.

What ongoing taxes will I pay as a property owner?

The main ongoing tax is Arnona (municipal property tax), paid to the local municipality. If you rent out the property, rental income is subject to Israeli income tax, though there are favourable flat-rate options. There is no annual property ownership tax in Israel.

Are there restrictions on renting out my Israeli property?

No major restrictions. Many foreign buyers rent out their property when not in use. Short-term rentals (Airbnb-style) are permitted in most areas, though some buildings and municipalities have their own rules.

Complete Guide · Updated 2026

Buying Property in Israel as a Foreigner

Whether you're making Aliyah or purchasing a home in Israel from abroad, this guide walks you through every step — from eligibility and Oleh tax benefits to finding the right property and completing registration.

No restrictions

on foreign ownership

50% LTV

mortgage for non-residents

Oleh exemption

on purchase tax

2–4 months

typical closing time

Can Foreigners Buy Property in Israel?

Yes — Israel places no restrictions on foreign nationals purchasing real estate. Whether you are a Jewish diaspora buyer, an Oleh making Aliyah, or a non-Jewish foreign national, you are legally entitled to purchase property in Israel under the same terms as Israeli citizens.

This openness is one of the reasons Israel's property market attracts significant international interest. However, being eligible to buy and knowing how to buy are two different things. The legal process, tax implications, and financing options differ meaningfully from other countries — and getting it right matters.

✓ Who can buy property in Israel

• New Olim (immigrants) — with significant tax benefits
• Diaspora Jews purchasing a second home or investment
• Non-Jewish foreign nationals
• Foreign companies and trusts (subject to reporting requirements)

Benefits for Olim (New Immigrants)

If you are making Aliyah, the Israeli government provides substantial financial benefits when purchasing your first property. These are among the most significant financial advantages available to new immigrants and should be factored into your planning from the start.

🏠

Purchase Tax Exemption

New Olim receive a significant purchase tax (Mas Rechisha) exemption on their first Israeli property, up to a threshold updated annually. This can save tens of thousands of shekels compared to a standard buyer.

🏦

Mortgage as Residents

Once you have made Aliyah, you are treated as an Israeli resident for mortgage purposes — meaning you can borrow up to 75% LTV on your first property, rather than the 50% limit for non-residents.

💰

Reduced VAT on New Builds

Olim purchasing a new construction property may be entitled to reduced VAT (Mas Erech Musaf) rates. This benefit is time-limited from the date of Aliyah — speak to a lawyer about eligibility.

📋

10-Year Tax Holiday

New Olim enjoy a 10-year exemption on foreign income and assets for Israeli tax purposes. This is relevant if you plan to fund your purchase from overseas income or investments.

Important: Olim benefits are time-limited from your Aliyah date and subject to eligibility conditions. Always verify your entitlements with a qualified Israeli tax lawyer or accountant before purchasing.

The Step-by-Step Buying Process

From finding a property to receiving the keys — here's exactly what to expect.

Get Financial Pre-Approval

Before anything else, understand your budget. If you plan to take an Israeli mortgage, start the pre-approval process (Ishur Ikrani) early. Foreign residents can typically borrow up to 50% of the property value.

💡 Having pre-approval dramatically strengthens your offer when you find the right property.

Hire an Israeli Real Estate Lawyer

This is non-negotiable. Your lawyer (עורך דין) will check title ownership at the Land Registry (Tabu), verify there are no liens or debts on the property, and protect your interests throughout the transaction.

💡 Choose a lawyer who is fluent in English and experienced with Anglo clients.

Find Your Property

Browse listings, visit properties, and work with a local agent who understands your needs. For Olim, consider proximity to English-speaking communities, schools, and synagogues.

💡 Visit at different times of day and check public transport links if you won't have a car immediately.

Sign a Letter of Intent (Zikaron Devarim)

Once you agree on a price, a brief memorandum is often signed. This is not a binding contract but sets out the agreed terms while your lawyer conducts due diligence.

💡 Do not transfer any significant funds until your lawyer has completed due diligence.

Due Diligence & Contract

Your lawyer checks the title (Nesach Tabu or Minhal), planning permissions, debts, and HOA (Vaad Bayit) obligations. Once satisfied, the purchase contract (Heskem Mechar) is drafted and signed.

💡 Contracts are typically signed within 30 days of agreeing on price.

Pay Purchase Tax (Mas Rechisha)

Purchase tax must be paid within 60 days of signing the contract. Rates vary depending on whether this is your only property, an investment, and your Oleh status. Your lawyer handles the calculation and filing.

💡 Olim receive a significant purchase tax exemption — make sure your lawyer applies it.

Complete Payment & Register

Payments are typically structured in instalments tied to construction milestones (new builds) or completion steps (resale). Your lawyer registers the property in your name at the Tabu upon final payment.

💡 Ensure funds are transferred via a licensed Israeli bank account to comply with anti-money laundering regulations.

Taxes & Costs to Budget For

Beyond the purchase price, buyers should budget for the following costs. These vary based on property value, buyer status, and whether the property is new or resale.

Cost	Typical Range	Notes
Purchase Tax (Mas Rechisha)	0–8% of price	Olim exemption on first ≈₪1.9M; higher rates for investors
Lawyer Fee	0.5–1.5% of price	Negotiable; essential for every purchase
Agent Commission	1–2% + VAT	Paid by buyer in Israel (unlike many countries)
Bank/Mortgage Fees	₪3,000–₪8,000	Appraisal, processing, and registration fees
Tabu Registration	₪500–₪2,000	Land Registry fee
VAT (new builds only)	17% (or reduced for Olim)	Included in developer price; Olim may qualify for reduction

Rates are indicative and subject to change. Consult a lawyer for your specific situation.

🇺🇸

US tax planning for Israeli property →

FBAR, FATCA, capital gains — what American buyers need to file.

🏙️

Arnona rates across Israel (2026) →

Recurring municipal tax — varies up to 3× between cities.

Mortgage Options for Foreign Buyers

Israeli banks do offer mortgages to foreign nationals, but the terms are more conservative than for residents. Here's what to know:

Non-Residents: Up to 50% LTV

If you are not an Israeli resident, banks will typically lend up to 50% of the property value. This means you need a minimum 50% down payment from your own funds.

New Olim: Up to 75% LTV

Once you have made Aliyah and are an Israeli resident, you are entitled to the same mortgage conditions as any Israeli citizen buying a first home — up to 75% LTV.

Currency Options

Israeli mortgages are available in NIS (linked to the prime rate or CPI), USD, or EUR. Many Anglo buyers opt for a foreign-currency component if their income is in dollars or euros.

Tip: Work with a licensed Israeli mortgage broker (Yoetz Mashkanta) who has experience with foreign clients. They can compare products across multiple banks and often secure better terms than applying directly.

→ Use our Israeli Mortgage Calculator

Who You Need on Your Team

Buying property in Israel without the right professionals is one of the most common and costly mistakes foreign buyers make. Here is who you need:

⚖️ Real Estate Lawyer

Mandatory. Checks title, reviews contracts, handles registration, and protects your interests. Choose one experienced with Anglo clients.

Essential

🏠 Real Estate Agent

An English-speaking local agent who knows your target area is invaluable. They surface properties before they hit the market and negotiate on your behalf.

Highly Recommended

🏦 Mortgage Broker

If financing, a broker with experience in foreign-resident or Oleh mortgages can save you significant money and simplify the bank process.

Recommended if financing

📊 Tax Accountant

If you are an Oleh, a CPA experienced with new immigrant tax benefits can ensure you claim every exemption available and structure ownership correctly.

Recommended for Olim

Popular Areas for Anglo Buyers

Anglo olim and diaspora buyers tend to gravitate toward established English-speaking communities with good infrastructure, synagogues, and international schools.

For a deeper look at where Anglo families actually buy, see our guide to the best Israeli neighborhoods for English-speaking families — ten neighborhoods across five cities, compared. And for budget context, see what $1M buys in Tel Aviv vs Jerusalem vs Netanya in 2026.

Frequently Asked Questions

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