Israeli Real Estate Law — Foreign Residents
Buying Israeli Property as a Foreign Resident
Tax and Process
Foreign residents pay higher purchase tax in Israel. Adv. Liron Elmaliach guides overseas buyers through the tax rates, exemptions, remote purchase process, and power of attorney requirements — from first inquiry to Land Registry registration.
Purchase Tax for Foreign Residents in Israel
When a foreign resident — defined as a person who is neither an Israeli citizen nor a new immigrant (oleh) — purchases residential property in Israel, they pay a higher rate of purchase tax (mas rechisha) than Israeli residents. As of 2025–2026, the rates are 8% on the first bracket and 10% above it, applied to the full purchase price with no zero-rate bracket.
By contrast, an Israeli resident purchasing their first home pays 0% on the lower bracket (up to approximately ₪1.9 million in 2025) — a difference that on a ₪2 million apartment can amount to over ₪150,000. Understanding whether you qualify for any exemption or reduced rate is therefore one of the most important steps before signing.
Israeli citizens who reside abroad occupy a middle ground: they may qualify for the resident brackets if they can demonstrate Israeli citizenship and, in some circumstances, if they do not own another property in Israel. Each case requires individual analysis.
One significant tax-planning opportunity is aliyah. If you are considering immigrating to Israel, the timing of aliyah relative to your purchase can result in a substantially lower tax bill. Coordinating the purchase and immigration process with a lawyer before signing any contract is strongly advisable.
Buying Remotely — Power of Attorney, Bank Account, Mortgage
A foreign resident can purchase Israeli property entirely remotely without ever setting foot in Israel. The mechanism is a power of attorney (POA) granted to a representative in Israel — typically the purchasing attorney — authorising them to sign contracts, open bank accounts, and complete all formalities on your behalf.
The POA must be executed before an Israeli consulate in your country of residence, or alternatively before a local notary public with an apostille affixed — a certificate issued under the Hague Convention that authenticates the document for use in Israel. A certified Hebrew translation is also required before the document can be presented to Israeli authorities.
Funding the purchase requires transferring money to Israel. Many purchasers open an Israeli bank account for this purpose. Account opening requires identity documentation and source-of-funds evidence in line with anti-money-laundering regulations. Large transfers into Israel must also be reported to the Bank of Israel in accordance with exchange-control regulations.
Israeli mortgages are available to foreign residents, but the maximum loan-to-value is limited — typically 50% — and the documentation requirements are more demanding. Many overseas purchasers finance their purchase entirely from abroad and avoid the mortgage process. Once all steps are complete, the attorney registers the purchase at the Israeli Land Registry (Tabu), giving the buyer full legal title.
Frequently Asked Questions — Foreign Resident Property Purchase
Answers to the most common questions from overseas buyers of Israeli property
Buying Israeli Property from Abroad?
Foreign Resident Purchase — Free Initial Consultation
Tax planning · Power of attorney · Land Registry registration