How to Buy Property in Israel: The Complete 10-Step Guide

In Short: What You Need to Know

Yes, You Can Buy – Foreigners can purchase property in Israel, but some government approvals may be needed, especially for state-owned land.
Higher Taxes & Fees – Non-residents may face higher purchase taxes, so budgeting wisely is essential.
Mortgage Challenges – Getting financing as a foreigner can be tricky, with stricter terms and conditions.
Legal Assistance is a Must – Hiring a lawyer familiar with Israeli property law is crucial.
Expert Guidance Helps – Selling Israel provides personalized support to navigate the process smoothly.

How to Buy Property in Israel: The Complete 10-Step Guide (2024)

Buying real estate in Israel can seem complex, especially for foreigners who are not familiar with the financial and legal procedures. This guide explains clearly how to buy property in Israel, step by step, from choosing the right location to registering the property at the Land Registry (Tabu).

Foreign buyers are welcome in Israel, and the process is safe — but it includes unique steps such as due diligence, “Zichron Devarim”, purchase tax, and several legal verifications. This guide summarizes everything you need to know before buying a home in Israel.

Can Foreigners Buy Property in Israel?

Yes. Foreigners can legally buy almost any type of residential property in Israel, whether it is a new project, a second-hand apartment, or a house. You do not need to be Israeli, Jewish, or hold residency status to purchase a home.

No restrictions on foreign ownership
No citizenship or residency requirement
Foreigners can own, rent, inherit, and resell property freely

The only exceptions are a few lands administered by the Israel Land Authority (Minhal), where ownership is “long-term lease” instead of freehold — but the buying process remains the same.

10 Steps to Buying Property in Israel

This is the complete and simplified guide to buying property in Israel safely and efficiently.

Step 1 — Define Your Budget and Financing

Before starting, determine how much you can afford, including taxes and legal fees. Foreign buyers can obtain an Israeli mortgage (up to 50%–60% LTV). Cash buyers can complete the process more quickly.

Step 2 — Choose the Right City or Community

Select a location based on lifestyle, price, community, and rental potential. Popular areas include Tel Aviv, Netanya, Raanana, Jerusalem, Rishon LeZion, and Maale Adumim.

Step 3 — Work With a Licensed Real Estate Agent

A local agent helps identify reliable properties, negotiate prices, and avoid scams. Agents in Israel are licensed and legally regulated.

Step 4 — Understand the Types of Properties

Second-hand apartments
New projects (“off-plan”)
Urban renewal (TAMA 38 / Pinui-Binui)
Private houses

Each category has different taxes and timelines.

Step 5 — Initial Reservation: “Zichron Devarim”

This is a short document confirming the buyer’s intention. It is not mandatory but often used to secure the property temporarily. At this stage, your lawyer should already be involved.

Step 6 — Hire an Israeli Real Estate Lawyer

The lawyer handles all legal checks, contract negotiations, land registry verifications, liens, debts, and ensures that the transaction is 100% safe.

Step 7 — Due Diligence & Legal Checks

Verify ownership (Tabu / Minhal / Hevra Meshakenet)
Check debts, liens, mortgages
Confirm building rights and permits
Review seller documentation

The legal structure in Israel protects the buyer strongly when done correctly.

Step 8 — Signing the Purchase Agreement

Once everything is verified, a detailed contract is signed. Payment schedules are usually divided into several installments based on progress.

Step 9 — Taxes and Fees When Buying Property

Here are the main costs to expect:

Purchase tax (Mas Rechisha) — depends on residency & price
Lawyer fees — usually 0.5%–1.5%
Agent commission — usually 1%–2% + VAT
Mortgage fees — find the full calculator here

Step 10 — Property Registration (Tabu)

The final step is registering the property under your name in the Israeli Land Registry. You can access the official online registration service on the government website here. Once registration is complete, you are the official owner.

How Much Does It Really Cost to Buy a Home in Israel?

Total costs usually represent 7%–10% of the purchase price. New projects may include fewer taxes, while second-hand homes involve additional verifications.

FAQ — Buying Property in Israel

Can foreigners buy property in Israel?

Yes. Foreigners can buy almost any type of residential property in Israel. No citizenship or residency is required, and ownership rights are fully protected by law.

Do I need an Israeli bank account to buy property?

Not necessarily. However, having an Israeli bank account makes transfers, mortgage approval, and payment schedules smoother and faster.

How long does the buying process take?

For second-hand properties, the full process usually takes 1–3 months. For new construction projects, the timeline depends on the building stage.

Is it safe to buy property in Israel?

Yes. Israel offers one of the strongest legal protections for real estate buyers. A licensed lawyer handles all checks to ensure the property is free of debts or liens.

Are there additional taxes for foreign buyers?

Purchase tax (Mas Rechisha) applies to all buyers. Rates depend on residency status and the price of the property. Foreigners do not pay extra taxes beyond this.

Conclusion

Now that you understand how to buy property in Israel, you can begin your search with clarity and confidence. With the right lawyer and agent, the process is safe, transparent, and efficient — whether you are purchasing a second-hand apartment, a new project, or an investment property.