Buying Off-Plan Apartments in Israel:
Everything Foreign Investors Need to Know

In Short: What You Need to Know

Save Money: Early buyers often secure 10–15% discounts on new apartments in cities like Tel Aviv, Herzliya, and Netanya.
Customize Your Home: Choose floor plans and finishes before construction is complete.
Watch for Risks: Protect yourself from construction delays and index-linked price increases by working with a real estate lawyer.
Follow the Right Steps: Research developers, review contracts carefully, and secure financing tied to construction milestones.
Foreigners Welcome: Yes, foreigners can legally buy off-plan in Israel—with the right protections in place.

Buying off-plan apartments in Israel — purchasing a property before it’s fully constructed — has become a smart move for many foreign investors. Hotspots like Tel Aviv, Herzliya, and Netanya offer exciting opportunities with strong growth potential.
However, understanding the process, benefits, and risks is key to making a smart investment.

Benefits of Buying Off-Plan in Israel

Buying off-plan apartments in Israel offers major advantages for international buyers:

Pre-Sale Discounts: Lock in lower prices early. For instance, CapitIL highlights attractive pre-sale payment terms.
Customization Options: Personalize layouts and finishes before construction is complete.
Flexible Payment Plans: Spread payments over 1–3 years, tied to construction progress milestones.

Risks & How to Mitigate Them

There are risks to be aware of, but with good preparation, you can manage them easily:

Planning Uncertainty: Some projects are pending final permits. Always check, as advised by Elkayam Law.
Indexation Clauses: Be aware that your price can adjust with the building cost index (Madad).
Fraudulent Developers: Red flags include “too good to be true” offers without verified permits.
Construction Delays: Bureaucratic hurdles or technical issues can delay delivery dates.

✅ Tip: Work with a licensed lawyer and demand transparency from developers.

How to Buy Off-Plan Apartments in Israel: Step-by-Step

Research Developers: Prefer builders with a strong track record and RMI tender wins.
Legal Review: Hire a real estate attorney to check contracts and permits.
Secure Financing: Prepare for index-linked payment schedules.
Track Progress: Visit sites and request regular updates.
Protect Your Investment: Insist on contracts with escrow accounts and penalty clauses.

Tax & Legal Tips for Foreign Investors

Capital Gains Tax: Non-residents may owe taxes when selling; Elkayam Law offers strategic advice.
VAT Savings for Olim: New immigrants may qualify for VAT exemptions when buying new homes.
Key Contract Clauses: Ensure the agreement includes protection against price hikes and project delays.

Curious about the next steps? Contact us today to learn more about how we can help you navigate the Israeli real estate market with confidence and ease.