Investment property: Israel

Updated 5 October 2026

Israel is an expensive market with steady demand: housing in Tel Aviv, Jerusalem, Haifa and the coastal cities has been supported for decades by population growth and immigration.

Foreigners can buy apartments and houses, but deals have three features: most land belongs to the state, a non-resident pays purchase tax on a higher scale, and the purchase gives neither residence nor citizenship.

Land and title to an apartment

Most land in Israel is state-owned and leased long term through the Israel Land Authority. For an apartment buyer this is usually a formality: the right is a land lease for decades with renewal. Before the deal we still check the lease, the Land Registry entry, debts, encumbrances and building permits. For plots and detached houses on state land the conditions for foreigners can be stricter, and we confirm them in advance.

Purchase tax for a non-resident

The reduced scale for a sole residence applies to Israeli residents. A foreign resident pays purchase tax as for an additional apartment:

The bracket limits apply from 16 January 2025 to 15 January 2028. Example: for an apartment at NIS 4 million, about $1,307,700, a non-resident pays 8%, that is NIS 320,000, about $104,700. New immigrants can apply to the Tax Authority for a partial exemption in their first years after arrival, so if you plan to make aliyah, the order of steps matters.

How a purchase works

• Choosing the property and checking title at the Land Registry and the Israel Land Authority.
• A contract with a lawyer, payment in stages, and for new builds a developer's bank guarantee.
• The transaction declaration to the Tax Authority and payment of purchase tax on time.
• Registration of title at the Land Registry or the Israel Land Authority.

Transaction costs and mortgages

Israeli banks lend a non-resident no more than 50% of the property value, so half the price must be your own money. The bank checks foreign income, credit history and the source of the down payment, and calculates the mortgage payment in shekels. Money for the deal is transferred to an Israeli bank account in advance: the bank and the lawyer check where it comes from.

Taxes when owning and selling

• Municipal tax (arnona) is paid by whoever lives in the apartment: the owner or the tenant.
• Residential rental income is taxed, with a track of 10% of gross rent; which track is better depends on the owner's status and the rent.
• Capital gains tax on sale (betterment tax) is 25% of the real, inflation-adjusted gain, and exemptions depend on residence and the number of apartments.

Property and immigration

Israel has no residence or citizenship programme through buying property. The main route to citizenship is aliyah under the Law of Return for Jews and their family members. A purchase can be part of a relocation plan, but it is not legally linked to it, and its timing affects tax.

What we do

We choose an apartment for your goal: a home for future aliyah, for family or for rental. We check land rights, encumbrances and the developer, calculate purchase tax and holding costs, handle the deal together with a locally licensed lawyer, and help with declarations, title registration and letting.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · All country programs

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