In short
How much purchase tax does a foreign resident pay when buying an apartment in Israel?
A foreign resident does not get the single-apartment brackets and pays 8% from the first shekel up to NIS 6,055,070 and 10% above, under a temporary provision in force for purchases until 10.2.2027. A person who becomes an Israeli resident for the first time, such as an oleh, within two years of the purchase can ask for a refund under the single-apartment brackets, and new immigrants also have a benefit under Regulation 12A.
How Much Purchase Tax Does a Foreign Resident Pay?
The reduced single-apartment brackets apply only to the only apartment of an Israeli resident. A foreign resident, including an Israeli who has stopped being an Israeli resident for tax purposes, pays purchase tax (mas rechisha) on a residential apartment at the additional-apartment rates: 8% from the first shekel up to NIS 6,055,070, and 10% on the part above. The test is tax residency, not citizenship.
Example: on an apartment of NIS 3,000,000, a foreign resident pays NIS 240,000. An Israeli resident for whom it is the only apartment pays about NIS 45,538, and a new immigrant entitled to the Regulation 12A benefit pays about NIS 5,106. You can calculate any price with our purchase tax calculator (in Hebrew).
The additional-apartment rates were set by a temporary provision until 31.12.2026. Because the Knesset was dissolved, it remains in force for purchases until 10.2.2027, under Section 38 of Basic Law: The Knesset. For a deal signed after that date, check what has been decided.
New Immigrants, and Becoming Resident Within Two Years
A person who becomes an Israeli resident for the first time, such as an oleh, or a veteran returning resident, within two years of the purchase is treated as an Israeli resident for the brackets. The refund is not automatic: you ask the Tax Authority to amend the assessment. For purchases between the end of February 2024 and the end of May 2026, the period was extended to 27 months.
A new immigrant who buys a residential apartment in the period starting one year before aliyah and ending seven years after it is also entitled to the benefit under Regulation 12A of the Purchase Tax Regulations: no tax up to NIS 1,978,745, 0.5% up to NIS 6,055,070, and 8% up to NIS 20,183,565. The benefit is given once, and eligibility is checked before signing.
Buying from Abroad: How to Sign Without Coming
The purchase agreement and the documents for the Tax Authority and the Land Registry can be signed through a power of attorney to a lawyer in Israel. A power of attorney signed abroad is accepted when it is signed before an Israeli diplomatic or consular representative, or before a local notary with an apostille: Israel joined the Hague Convention in 1978. At a consulate you book an appointment in advance and sign only in the consul's presence.
An irrevocable power of attorney must name the person whose right it secures and include an express irrevocability clause; otherwise it is treated as an ordinary power of attorney. Get the wording from your lawyer in Israel before you go to sign, so you only go to the consulate or notary once.
Purchases by a Foreigner Not Entitled to Immigrate
Most land in Israel is Israel Land Authority land. Under Section 2A of the Israel Lands Law, added in 2011, transferring ownership or a lease of more than five years to a foreigner requires approval. A "foreigner" for this purpose is a person who is neither an Israeli citizen or resident nor entitled to immigrate under the Law of Return, so a person entitled to immigrate does not need the approval.
A foreigner who is an individual and wants to acquire one residential unit on land zoned for housing, and holds no rights in another residential unit, receives the approval from the director of the Israel Land Authority. A transaction made without the required approval will not be registered, so this is checked before signing.
What to Check Before Signing
As in any real estate transaction: the Tabu extract and the registered owner, mortgages, attachments and notes, the building permit and any deviations, municipal tax and levy debts, and whether the apartment matches what is registered. The purchase agreement sets a protected payment schedule, and a caveat (he'arat azhara) is registered in the buyer's favor right after signing. See also real estate contracts.
For a new apartment from a developer, check the specification, the delivery date and the Sale Law guarantee for every payment. See apartment buyers vs. developers.
Deadlines After Signing
The buyer and the seller file a declaration with the Tax Authority within 30 days of the transaction (Section 73 of the Land Taxation Law), online. Purchase tax is paid according to the self-assessment within 60 days of the transaction (Section 90A). The buyer's lawyer files the declaration and handles the registration.
How We Work with Buyers Abroad
A first conversation by phone or WhatsApp, then a video meeting from anywhere in the world, in English or in Hebrew. We check the property and the documents, negotiate the contract, send the power of attorney and explain where to sign it, file the declarations with the Tax Authority and handle the registration. Inheriting an apartment with heirs abroad: see inheriting in Israel from abroad. More about working with us in English: English-speaking lawyer in Israel.
What the service includes
- Checking the property, the rights and the contract before signing
- Purchase tax review: foreign resident, oleh, returning resident and refunds
- Powers of attorney for signing at a consulate or with an apostille
- Checking whether Israel Land Authority approval is needed for a foreigner
- Tax Authority declarations, caveat and registration
When to contact us
- You live abroad and are considering buying an apartment in Israel
- You have made or are about to make aliyah and are buying
- You bought as a foreign resident and then became resident
- You need to sign a deal without coming to Israel
What to bring to the meeting
- Property details and the Tabu extract, if available
- The draft agreement or the offer
- Passport and oleh certificate or residency documents
- Details of other apartments you own, in Israel and abroad
Buying in Israel as a Foreign Resident or Oleh throughout Israel
The firm represents clients from all over Israel: Jerusalem and the Shfela, Be'er Sheva, Ashdod and Ashkelon, Haifa and the North, the Sharon and Gush Dan. Meetings take place at our two Modiin branches, at the WE Towers branch in Tel Aviv or by video call, and documents can be sent in advance on WhatsApp. We represent clients in the courts, the Labor Courts and before planning committees throughout Israel. How we work with clients across Israel.
Frequently asked questions
How much purchase tax does a foreign resident pay in Israel?
A foreign resident does not get the single-apartment brackets and pays 8% from the first shekel up to NIS 6,055,070 and 10% above, under a temporary provision in force for purchases until 10.2.2027.
Does an Israeli living abroad pay like a foreign resident?
When he or she is no longer an Israeli resident for tax purposes, yes. The test is tax residency, not citizenship.
I bought as a foreign resident and then made aliyah. Can I get a refund?
Yes, if you became an Israeli resident for the first time, or a veteran returning resident, within two years of the purchase (27 months for purchases between the end of February 2024 and the end of May 2026). The refund is not automatic: you ask the Tax Authority to amend the assessment.
How much purchase tax does a new immigrant pay?
An oleh who buys a residential apartment from one year before aliyah to seven years after it pays no tax up to NIS 1,978,745, 0.5% up to NIS 6,055,070 and 8% up to NIS 20,183,565, under Regulation 12A. The benefit is given once.
Do I have to come to Israel to sign the purchase agreement?
No. You sign a power of attorney to a lawyer in Israel at an Israeli consulate or before a local notary with an apostille, and the lawyer signs on your behalf.
Can a foreigner who is not entitled to make aliyah buy an apartment in Israel?
Yes, but on Israel Land Authority land, transferring ownership or a lease of more than five years to a foreigner requires approval. One residential unit, when the buyer has no other apartment, is approved by the director of the Authority.
When must the purchase be reported and the tax paid?
A declaration is filed with the Tax Authority within 30 days of the transaction, and the purchase tax is paid within 60 days of the transaction.
