FAQ
Frequently Asked Questions
The essential answers our clients ask first. For more specific questions, contact our team directly.
Foreign Acquisition
Can foreign citizens buy in Israel?
Yes. Israel imposes no nationality restriction on real estate ownership. Foreign buyers acquire freehold title (Tabu) on the same legal basis as Israeli citizens, with the exception of some properties on Israel Lands Authority land where long leasehold applies.
Do I need to be in Israel to complete the purchase?
No. The transaction can be completed remotely through a power of attorney to your Israeli lawyer. Most foreign buyers travel for property viewings and contract signing, but not for final closing.
How many times do I need to come?
One to two times is typical: one trip to view the shortlist (3–5 days), and sometimes a second for final signing.
Taxation
What is the purchase tax (Mas Rechisha) for non-residents?
For non-resident buyers: 8% on the first portion of value (~6 million NIS) and 10% above. No first-home exemption. A buyer planning aliyah may benefit from oleh chadash reduced rates under certain conditions.
What is the capital gains tax on resale?
Capital gains tax (Mas Shevach) applies at 25% on appreciation for non-residents, calculated on the inflation-adjusted gain. The Israeli framework is reasonably generous to long-term holders.
What is the tax on rental income?
Non-residents have a choice: simplified 10% withholding on gross rental income (no deductions), or progressive income tax rates with deductions. The 10% regime is generally preferred for premium residential rentals.
What are the oleh chadash tax benefits?
Reduced Mas Rechisha on the primary residence (often 0.5% up to a threshold, then 5%), ten-year exemption on foreign-source income, exemption on foreign asset capital gains, and exemption on foreign pensions.
Off-Market
What percentage of transactions are off-market?
Industry estimates suggest 35–50% in the segment above 12 million NIS, with higher concentrations in Herzliya Pituah, Caesarea, and Talbiyeh.
How do I access off-market properties?
Through a relationship with an established advisor in the relevant submarket. Off-market inventory is not aggregated on any platform — it is a relationship process, not a portal.
Process & Financing
What is the total transaction cost for a foreign buyer?
Beyond the purchase price, budget approximately 8–11% combined: purchase tax (Mas Rechisha), legal fees, broker commission, and registration costs. Mas Rechisha is the largest component.
How long does a typical acquisition take?
From initial brief to registered title in Tabu: 6 to 12 months for a well-defined brief and realistic price range. Trophy assets or highly-constrained neighbourhoods may take 12–18 months.
Can I get a mortgage as a non-resident?
Yes. Israeli banks lend to foreign buyers, typically up to 50% LTV, in shekels or major currencies (USD, EUR, GBP). Rigorous documentation, 8–14 weeks of underwriting.
Neighborhoods & Market
Tel Aviv or Jerusalem for investment?
Tel Aviv for yield and liquidity (2.8–4% gross). Jerusalem for heritage preservation and long horizon (1.8–2.8% gross but lower volatility). Sophisticated clients often hold both.
What are the most expensive neighborhoods in Israel?
Galei Tchelet in Herzliya Pituah holds the absolute top ($20–50M+ for seafront villas). Then Park Tzameret and Sarona in Tel Aviv (trophy penthouses 150–180k NIS/m²), then Talbiyeh in Jerusalem and Caesarea Aleph.
A specific question?
Our team is available by direct introduction.
Contact us