For an international buyer, Israeli real estate is never an isolated transaction. It is an asset in a wider portfolio, structured in interaction with other positions, other jurisdictions, and other horizons. Our role is to align property acquisition with the client's broader wealth strategy. This covers the choice between yield and preservation, the arbitrage between Tel Aviv and Jerusalem, using the shekel as a hedge against the euro or dollar, pre-aliyah planning, and multi-property structuring.
Yield vs Preservation
Both strategies are legitimate; they are not compatible. A yield strategy (Rothschild, Old North, certain short Mamilla rentals) generates 3–5% gross annually. A preservation strategy (Talbiyeh, Galei Tchelet, Yemin Moshe) yields 1.5–2.5% gross but offers materially lower volatility and downside. The choice depends on your horizon, cash-flow need, and the role of the asset in your portfolio.
The Shekel as Hedge
For a client based in euros or dollars, acquiring a shekel-denominated asset constitutes currency diversification. The shekel has shown remarkable stability against the euro since 2015, and the Israeli economy carries solid fundamentals. For European clients in particular, this is an increasingly explicit motivation — less a hedge than a strategic rebasing of part of the wealth.
Pre-Aliyah Planning
Article 14 of the Income Tax Ordinance grants new olim a ten-year exemption on foreign-source income and capital gains. For a buyer planning aliyah within a 5–10 year horizon, Israeli property acquisition should be structured in anticipation of this status. The timing rules are technical, and the margin for error costly.
Multi-Property Strategies
Sophisticated clients often hold multiple Israeli properties — a Tel Aviv apartment for liquidity and family use, a Jerusalem house for the long horizon and meaning, sometimes a Herzliya Pituah or Caesarea villa as a second home. The tax structure (progressive Mas Rechisha, capital gains treatment, rental income declaration) benefits from anticipated planning.
Frequently Asked Questions
Do you work with my existing advisors?
Yes, we systematically coordinate with your family office, tax advisor, lawyer, and banker. Our role is to bring sector and geographic expertise; strategic stewardship remains with your principal team.
Do you provide tax advice?
We provide structural understanding of the Israeli tax framework and coordinate with Israeli and international tax specialists for specific questions. We do not provide formal tax advice; we identify the questions to ask your tax specialist.
A strategic conversation about your Israeli exposure
Confidentiality. No commitment. Coordination with your existing advisors.
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