Buyer's guide
Buying Property in Israel
A step-by-step guide to the Israeli purchase process — from finding the right property to registering title in your name.
What you need to know before you buy
Buying property in Israel is straightforward once you understand the system. There are no restrictions on who can buy, the legal framework is transparent, and the Land Registry (Tabu) provides clear title. The main differences from Western markets are the role of the attorney, the purchase tax structure, and the mortgage rules for non-residents.
The buying process
Step by step: buying property in Israel
Define your budget and goals
Decide whether you're buying to live, rent, or invest. This shapes which city, neighbourhood, and property type makes sense. Factor in purchase tax (8% for non-residents), attorney fees (0.5–1%), and agent commission (typically 2% + VAT).
Appoint a licensed attorney
Your attorney is the most important person in the transaction. They conduct the title search, review the purchase agreement, handle tax filings, and register the transfer. Budget ₪15,000–₪30,000 for legal fees on a standard apartment.
Find your property
Work with a licensed Israeli real estate agent (מתווך). Listings appear on Yad2 and Madlan, but the best off-market opportunities come through agent relationships. Bibian Group has access to pre-market inventory across Tel Aviv, Jerusalem, and the coast.
Make an offer and sign the heads of terms
Once you agree a price, your attorney and the seller's attorney negotiate the purchase agreement (חוזה מכר). This typically takes 2–4 weeks. A deposit of 10% is paid on signing.
Due diligence
Your attorney checks the title at the Land Registry, confirms there are no liens or encumbrances, verifies planning permissions, and reviews the building's shared ownership (בית משותף) records.
Arrange financing
If you need a mortgage, apply to an Israeli bank. Non-residents can borrow up to 50% LTV. The bank will require a property valuation and proof of income. Allow 4–6 weeks for approval.
Pay purchase tax and complete
Purchase tax (Mas Rechisha) is paid to the Israeli Tax Authority before completion. Your attorney handles this. Once paid, the balance is transferred and the title is registered in your name at the Land Registry.
Cost breakdown
What does buying in Israel actually cost?
Costs are approximate and vary by property value and buyer status.
| Cost item | Amount |
|---|---|
| Purchase tax (non-resident) | 8% of purchase price |
| Purchase tax (Israeli resident, first home) | 0% up to ₪1.97M, then progressive |
| Attorney fees | 0.5–1% + VAT |
| Agent commission | 2% + VAT (17%) |
| Mortgage arrangement fee | 0.25–0.5% of loan |
| Property valuation | ₪1,500–₪3,000 |
| Land Registry registration | ₪500–₪1,500 |
Common questions
Frequently asked questions
Can foreigners buy property in Israel?
Yes. Israel places no restrictions on foreign nationals buying real estate. You can purchase in your own name or through a company, and the title is fully protected by Israeli law.
Do I need to be physically present to buy?
No. Many international buyers complete the entire process remotely. Your attorney can act under a power of attorney, and signings can be done at an Israeli consulate or notarised abroad.
How long does the process take?
From accepted offer to completion typically takes 3–6 months. New construction purchases can take longer, as completion is tied to the building schedule.
Can I get a mortgage as a non-resident?
Yes. Israeli banks lend to non-residents at up to 50% LTV. You'll need to provide proof of income, bank statements, and a property valuation. Rates are typically variable.
What taxes apply after purchase?
Rental income is taxed at 15% (flat rate option) or at your marginal rate. Capital gains on sale are taxed at 25% for non-residents, with exemptions available in some cases.
Get personalised buying guidance
Our team has guided hundreds of international buyers through the Israeli purchase process. We handle everything from property search to completion.
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