Country guide
Buying property in Israel as a foreigner
Rules last checked 29 October 2026 · 12 official sources · Education, not financial, tax, legal or immigration advice.
Israel bars conveying rights in Israel Lands, meaning ownership or a lease over 5 years, to a foreign national without the approval of the Chairman of the Israel Land Council. Israeli citizens and residents and persons entitled to immigrate under the Law of Return are not foreign nationals for this rule, and an individual foreign national can buy one residential unit on residential zoned land by a route through the Israel Land Authority.
What are you doing with Israel?
Returns after tax, what is withheld, and the way out.
Israel charges purchase tax of 8% on value up to NIS 6,055,070 and 10% above on a dwelling that is not the buyer's sole dwelling, under a temporary provision valid until 31 December 2026. Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Answered below
limited Bank of Israel Directive 329 (version dated 12/20) caps loan to value at 75% for a sole dwelling, 70% for a replacement dwelling and 50% for an investment dwelling.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Answered below
Until 31 December 2026 a temporary provision sets purchase tax at 8% up to NIS 6,055,070 and 10% above for a dwelling that is not the sole dwelling, and no official source states what applies afterwards.
Whether a purchase gives a right to live there, and what living there costs in tax.
In Israel the Law of Return gives the right to immigrate by status, as a Jew, a child or grandchild of a Jew, or the spouse of one, and not through buying property. Details
Israel bars conveying rights in Israel Lands, meaning ownership or a lease over 5 years, to a foreign national without the approval of the Chairman of the Israel Land Council. Details
Israel charges purchase tax of 8% on value up to NIS 6,055,070 and 10% above on a dwelling that is not the buyer's sole dwelling, under a temporary provision valid until 31 December 2026. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
In Israel the Law of Return gives the right to immigrate by status, as a Jew, a child or grandchild of a Jew, or the spouse of one, and not through buying property.
- What happens if I die, or the family inherits?Answered below
The OECD inheritance taxation report (2021) lists Israel's Inheritance Tax Law, introduced in 1949, as repealed in 1980, and shows Israel with zero revenue from inheritance and estate taxes.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Answered below
Until 31 December 2026 a temporary provision sets purchase tax at 8% up to NIS 6,055,070 and 10% above for a dwelling that is not the sole dwelling, and no official source states what applies afterwards.
Part year stays, the yearly bill, and what the family inherits.
Israel bars conveying rights in Israel Lands, meaning ownership or a lease over 5 years, to a foreign national without the approval of the Chairman of the Israel Land Council. Details
In Israel the Law of Return gives the right to immigrate by status, as a Jew, a child or grandchild of a Jew, or the spouse of one, and not through buying property. Details
Israel charges purchase tax of 8% on value up to NIS 6,055,070 and 10% above on a dwelling that is not the buyer's sole dwelling, under a temporary provision valid until 31 December 2026. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
In Israel the Law of Return gives the right to immigrate by status, as a Jew, a child or grandchild of a Jew, or the spouse of one, and not through buying property.
- What happens if I die, or the family inherits?Answered below
The OECD inheritance taxation report (2021) lists Israel's Inheritance Tax Law, introduced in 1949, as repealed in 1980, and shows Israel with zero revenue from inheritance and estate taxes.
- What is owed every year, even if the home sits empty?Not confirmed yet
Some countries tax an empty or personal use home on an assumed income.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
Israel charges purchase tax of 8% on value up to NIS 6,055,070 and 10% above on a dwelling that is not the buyer's sole dwelling, under a temporary provision valid until 31 December 2026. Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
The OECD inheritance taxation report (2021) lists Israel's Inheritance Tax Law, introduced in 1949, as repealed in 1980, and shows Israel with zero revenue from inheritance and estate taxes.
- What happens when I sell?Answered below
Israel taxes real estate capital gains of individuals usually at 25% of the real gain, and only the part accruing from 1 January 2014 is taxed for property held before 2014. The sole dwelling exemption is capped at a sale value of NIS 5,008,000 for 1 January 2025 to 31 December 2027.
- What is changing soon?Answered below
Until 31 December 2026 a temporary provision sets purchase tax at 8% up to NIS 6,055,070 and 10% above for a dwelling that is not the sole dwelling, and no official source states what applies afterwards.
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions | Applies |
|---|---|---|---|---|
| Citizens of Israel | residential | Open | Israeli citizens and residents are not foreign nationals under section 2A of the Israel Lands Law as reproduced in the ILA tender booklet. For bank mortgage rules and the purchase tax sole dwelling schedule, the Bank of Israel directive and the Tax Authority instructions turn on citizenship or Israeli residence: nonresident in the directive means any person who is not an Israeli citizen. | |
| Everyone else (not Israel) | residential | Conditions apply |
| |
| Everyone else (not Israel), living elsewhere | Any property | Approval needed |
| from 1 January 2011 |
| Everyone else | Any property | Conditions apply |
|
What it costs to buy
Purchase tax (mas rechisha), single residential dwelling bought by an Israeli resident individual
- Rate
For purchases from 16 January 2025 to 15 January 2028 (amounts frozen by the 2025 Arrangements Law, not indexed in 2025 to 2027):
- 0% up to NIS 1,978,745
- 3.5% above that up to NIS 2,347,040
- 5% to NIS 6,055,070
- 8% to NIS 20,183,565
- 10% above
Bands are progressive.
- Extra for a foreign buyer
The single dwelling schedule is stated for an individual who is an Israeli resident (section 9(c1c)(3)). A buyer counts as an Israeli resident for it also if, within two years of the purchase, the buyer becomes a first time or returning veteran resident (instruction 2/2026, section 2.1.1.3, with a war time extension of dates to 31 August 2026 for periods ending in the specified window).
Purchase tax, dwelling that is not the buyer's sole dwelling (temporary provision)
- Rate
A buyer of a residential dwelling that is not the buyer's sole dwelling pays 8% on value up to NIS 6,055,070 and 10% on the part above, under the temporary provision in section 9(c1ו) valid until 31 December 2026 (Tax Authority instructions 1/2025 and 1/2026).
- Extra for a foreign buyer
The single dwelling schedule is stated for an Israeli resident individual, or one who becomes resident within two years, so a foreign resident buyer is outside it as the instructions word it. The Tax Authority review states foreign resident investors pay full purchase tax.
Purchase tax relief for new immigrants (olim)
- Rate
For a purchase from one year before aliyah to seven years after (Tax Authority instructions; immigrant guide), regulation 12A applies to a sole dwelling:
- no tax up to NIS 1,978,745
- 0.5% from there to NIS 6,055,070
- 8% to NIS 20,183,565
- the relief does not apply to a dwelling worth more than that
For a business premises under regulation 12, an oleh who immigrated before the August 2024 amendment pays 0.5% up to NIS 1,988,090 and 5% above (2025 figures). Applied for at the Real Estate Taxation office (form 2973).
Declaration of the transaction
- Rate
Form 7000 declaration on the sale and purchase of real estate, due within 30 days of the transaction. Late declaration fine NIS 310 per two weeks from 16 January 2026 and late notice fine NIS 250; the Real Estate Taxation fee for a service request is NIS 96 or NIS 230 or NIS 64 depending on the regulation (from 16 January 2026).
What if the price is…?
- Purchase tax on a dwelling that is not the buyer's sole dwelling (a banded scale)ILS 40,000
Duties and fees under the rules shownILS 40,000
- The temporary provision in section 9(c1ו), valid until 31 December 2026 (Tax Authority instructions 1/2025 and 1/2026): 8% on value up to NIS 6,055,070 and 10% on the part above. The lower single dwelling schedule is stated for an Israeli resident, and the Tax Authority review states foreign resident investors pay full purchase tax. Reliefs for new immigrants are not included.
Only duties stated for a foreign buyer of a home are counted: flat rates, flat fees and the standard banded scale shown. Reliefs, exemptions and the buyer's own circumstances can change the result. A planning figure, not a quote: legal fees, agent fees and local taxes are extra.
Rent from the property
Tax on rent
- Owner living elsewhere
OECD working paper 53 (2021) describes three tracks for non business residential rent: an exemption for monthly rent up to about NIS 5,100 in 2020 (NIS 5,070 in 2021) that phases out to zero at twice that amount, a flat 10% on gross rent with no expense deduction and no cap, or full declaration at marginal rates (minimum 31% for passive income, with depreciation at 2% declining balance). These figures are dated 2020 and 2021.
- Filing
Form 3302 opens a file for tax payments on residential rent. Foreign income and assets of tax residents are reported on form 5329.
Selling
Tax on a sale
- Owner living elsewhere
Real estate capital gains tax on individuals is usually 25% on the real (inflation indexed) gain; for property held before 2014 a linear split taxes only the part accruing from 1 January 2014 (OECD working paper 53). The sole dwelling exemption under chapter 5.1 is capped at a sale value of NIS 5,008,000 for 1 January 2025 to 31 December 2027 (Tax Authority instructions 1/2025 and 1/2026).
- Exemptions
- A sole dwelling held for the required period is exempt up to the ceiling; the OECD paper states the conditions as the only house owned and held for more than 18 months (2021).
- Section 49E (selling two dwellings) has value limits of NIS 2,252,000 for the two together and NIS 3,746,000 maximum value; section 49G adds an exemption of up to NIS 2,428,100 with a floor of NIS 607,000 where the price reflects extra building rights.
- Additional tax (surtax) applies to a dwelling sale only if the sale value exceeds NIS 5,385,285 and the sale is not exempt; the additional tax is 3% plus a further 2% on capital income above NIS 721,560 (2025 amount).
- Replacement dwelling windows of 18 or 24 months apply to the sole dwelling status, extended in 2026 by the Extension of Periods law to dates up to 31 August 2026 or three months after the original date.
- Form 7003 lets a seller spread land appreciation tax over up to four years.
Key numbers (3)
| Real estate capital gains tax rate on individuals (usual) | 25% |
|---|---|
| Sole dwelling capital gains exemption ceilingfrom 1 January 2025 until 31 December 2027 | ILS 5,008,000 |
| Dwelling sale value above which additional tax can applyfrom 16 January 2025 until 15 January 2028 | ILS 5,385,285 |
What if I sell?
Gain (sale price less purchase price)ILS 100,000
Tax on the sale
- Real estate capital gains taxILS 25,000Charged on the real gain, which is indexed for inflation. Usually 25 percent on the real gain. A sole dwelling held for the required period is exempt up to a sale value of NIS 5,008,000 for 2025 to 2027. For property held before 2014 only the part accruing from 1 January 2014 is taxed.
Total under the rules shownILS 25,000
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
The OECD inheritance taxation report (2021) lists Israel's Inheritance Tax Law, introduced in 1949, as repealed in 1980, and shows Israel with zero revenue from inheritance and estate taxes.
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in Israel.
Residence through property
Law of Return (aliyah)
- Threshold
Entitlement by status under sections 1A and 4A, not by investment.
- Status
open
Borrowing, banking and other assets
Borrowing
- Can a foreign buyer borrow locally
limited
- Typical loan to value for a non resident
- Bank of Israel Directive 329 (version dated 12/20) caps loan to value at 75% for a sole dwelling, 70% for a replacement dwelling and 50% for an investment dwelling.
- The sole and replacement dwelling definitions are for an individual who is an Israeli citizen, and nonresident means any person who is not an Israeli citizen, so a non citizen buyer falls in the 50% investment cap.
- Housing loans in or indexed to foreign currency issued to a nonresident are exempt from the variable rate limit.
The usual steps, in order
- Identify whether the parcel is private freehold or ILA land (including a capitalized lease) from the land registry and the ILA file.
- If the parcel is Israel land and the buyer is a foreign national under section 2A of the Israel Lands Law, an application for approval goes to the Chairman of the Israel Land Council, or the ILA may approve one residential unit for an individual who holds no other residential unit.
- A contract is signed, usually through a lawyer, and the purchase tax category (sole dwelling, other dwelling, new immigrant) is stated in the declaration.
- The purchaser files the transaction declaration (form 7000) within 30 days and pays purchase tax assessed by the Real Estate Taxation office; a new immigrant may apply for the relief (form 2973).
- If a mortgage is used, the bank applies Directive 329 loan to value limits, which depend on citizenship and on whether the home is a sole, replacement or investment dwelling.
- Ownership or lease rights are registered, and ILA consent or fees may apply on transfer of leased land that is not capitalized.
- Rent received is reported under one of the Income Tax Ordinance tracks, and a later sale is declared for capital gains tax.
What is changing
- Until 31 December 2026 a temporary provision sets purchase tax at 8% up to NIS 6,055,070 and 10% above for a dwelling that is not the sole dwelling, and no official source states what applies afterwards.
- The amounts in the single dwelling purchase tax schedule are frozen by the 2025 Arrangements Law and are not indexed in 2025 to 2027, for purchases until 15 January 2028.
Questions people ask
What if I am not a citizen and want to buy a home in Israel?
Section 2A of the Israel Lands Law bars conveying rights in Israel lands (ownership, or a lease over five years) to a foreign national without the approval of the Chairman of the Israel Land Council, with a route for an individual to buy one residential unit on residential zoned land. This is not advice; a licensed Israeli lawyer can check a given parcel.
How does purchase tax work for a foreign resident?
The Tax Authority instructions give 8% up to NIS 6,055,070 and 10% above for a dwelling that is not the buyer's sole dwelling, valid until 31 December 2026. The single dwelling schedule (0% up to NIS 1,978,745, then 3.5%, 5%, 8%, 10%) is stated for Israeli resident individuals, including a buyer who becomes resident within two years.
What if I make aliyah after buying a home?
The immigrant guide and the Tax Authority instructions say a purchase tax relief is available for a property bought from one year before aliyah until seven years after, claimed at the Real Estate Taxation office; the sole dwelling relief is 0% up to NIS 1,978,745 and 0.5% to NIS 6,055,070.
How does the new immigrant income tax benefit work?
New immigrants, immigrant citizens, returning minors and returning residents may be exempt from tax and reporting on income and assets from a foreign source for 10 years, and a veteran returning resident or oleh may apply for an acclimation year within 90 days of arrival. Passive income in Israel such as rent is not covered by the benefit.
How is rent from an Israeli apartment taxed?
OECD working paper 53 (2021) describes a flat 10% on gross residential rent with an exemption for low monthly rent, or declaration at marginal rates.
What if I sell the apartment at a gain?
The Tax Authority describes real estate capital gains tax on individuals as usually 25%, calculated on a linear basis so that only the gain accrued from 2014 onward is taxed for older holdings.
How does a mortgage work for someone who is not an Israeli citizen?
Under Bank of Israel Directive 329 a nonresident is anyone who is not an Israeli citizen, and the sole and replacement dwelling tiers are for citizens, so the 50% investment dwelling cap is the one that applies to a non citizen buyer.
What if I inherit property in Israel?
The OECD inheritance taxation report (2021) lists the Israeli Inheritance Tax Law as repealed in 1980.
What if a buyer who is not Israeli later becomes a resident?
For the sole dwelling purchase tax schedule, an individual counts as an Israeli resident if, within two years of the purchase, the buyer becomes a first time or returning veteran resident (instruction 2/2026).
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The purchase tax for a dwelling that is not the sole dwelling after 31 December 2026, including any extension of the temporary provision, could not be confirmed from an official source yet.
- A separate purchase tax schedule or test for foreign residents could not be confirmed from an official source yet, because the Tax Authority instructions read give none.
- The rules for a foreign resident buying privately held freehold, and any security or border land restrictions, could not be confirmed from an official source yet.
- The tax on rent for an owner who lives outside Israel and the current exempt rent ceiling could not be confirmed from an official source yet.
- Capital gains tax specifics for a non resident seller, withholding on a sale and the current statute conditions for the sole apartment exemption could not be confirmed from an official source yet.
- Municipal property tax rates, other annual holding taxes and any gift tax could not be confirmed from an official source yet.
- The status of the 2026 graduated tax exemption for new immigrants and of the reporting change for immigrants arriving from 1 January 2026 could not be confirmed from an official source yet.
- The current text of section 2A of the Israel Lands Law and the Israel Land Authority procedure for the one unit route could not be confirmed from an official source yet, because only a reproduction in a tender booklet was read.
Sources
See what this does to your own numbers
Add a property in Israel next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 29 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.