Buying property in Israel as someone living outside the country is entirely possible — and thousands of diaspora Jews do it successfully every year. But the process has important differences from buying real estate in the US, UK, or elsewhere. This guide walks you through every step.
Can foreigners buy property in Israel?
Yes. Israel places no restrictions on foreign nationals purchasing real estate. Whether you hold Israeli citizenship, are Jewish but not an Israeli citizen, or are a non-Jewish foreign national, you have the same legal right to buy property in Israel.
The process does involve specific tax rates, legal requirements, and financing considerations that differ from Israeli residents — all of which are covered in this guide.
Step 1: Define your goals and budget
Before searching for properties, be clear on:
- ·Purpose — Is this a vacation home, a future aliyah base, an investment property, or all three?
- ·Location — Jerusalem, Tel Aviv, Netanya, and Haifa have very different price points and lifestyles.
- ·Budget — Include purchase price plus all transaction costs (typically 8–12% on top of the property price for a foreign buyer).
- ·Timeline — Are you buying a completed property or off-plan (new development)?
Step 2: Engage a licensed Israeli broker
In Israel, both buyers and sellers typically work with licensed brokers. As a foreign buyer, your broker is your most important relationship — they will:
- ·Source verified properties matching your criteria
- ·Negotiate on your behalf
- ·Coordinate between all parties (seller, lawyers, bank)
- ·Guide you through Israeli market norms
Broker fees in Israel are typically 2% + VAT from the buyer, paid at closing.
Important: Always verify your broker is licensed with the Israeli Brokers Registry (Misrad HaRisui).
Step 3: Engage an Israeli real estate lawyer
This step is non-negotiable. Your lawyer will:
- ·Conduct due diligence on the property (title search at the Tabu / Land Registry)
- ·Review and negotiate the purchase contract
- ·Verify there are no liens, mortgages, or legal issues on the property
- ·Handle the transfer of ownership registration
- ·Advise on tax obligations
Legal fees are typically 0.5–1.5% + VAT of the purchase price.
Step 4: Property search and due diligence
With your broker, you'll search for properties. Once you identify one you want to pursue:
- Your lawyer checks the Tabu (land registry) for clean title
- Your lawyer checks for any outstanding mortgages or liens
- For new developments: review the developer's permit (היתר בנייה) and financial guarantees (ערבות חוק מכר)
- Physical inspection of the property
Step 5: Sign the preliminary agreement (Zichron Devarim)
Once due diligence is complete, you typically sign a preliminary agreement (זיכרון דברים / Zichron Devarim) and pay a small deposit (usually 5–10% of the purchase price). This is binding in Israeli law, so only sign when you are committed.
Step 6: Sign the full purchase contract (Heskem Rechisha)
Within 2–4 weeks, the full purchase contract is signed. Payment is structured in stages:
- ·10–30% at contract signing
- ·Milestone payments during construction (for off-plan)
- ·Final payment at key handover
Step 7: Pay purchase tax (Mas Rechisha)
As a foreign buyer (or Israeli resident with an existing property), you will pay purchase tax at higher rates than a first-time Israeli buyer. See our full guide: Mas Rechisha: Purchase Tax for Foreign Buyers.
Step 8: Register ownership at the Tabu
Your lawyer registers the transfer of ownership at the Israeli Land Registry (Tabu). This is the final step confirming you are the legal owner.
Total costs to budget for
| Cost | Typical amount |
|---|---|
| Purchase price | 100% |
| Mas rechisha (purchase tax) | 5–10% of purchase price |
| Lawyer fees | 0.5–1.5% + VAT |
| Broker fees | 2% + VAT |
| Registration fees | ~0.5% |
| **Total extra costs** | **~8–14%** |
Frequently asked questions
Do I need to be in Israel to buy property?
No. Many diaspora buyers complete their purchase remotely using a Power of Attorney (Yipui Koach) granted to their Israeli lawyer. You may visit once or twice but it is not required.
Can I get an Israeli mortgage (mashkanta) from abroad?
Yes, though it is more complex than for Israeli residents. Most Israeli banks offer mortgages to foreign buyers, typically financing up to 50% of the property value. See our full guide: Can I Get a Mashkanta from Abroad?
How long does the process take?
For a completed (resale) property: 2–4 months from offer to keys. For off-plan (new development): the purchase process takes 1–3 months, but the wait for the property to be built can be 2–5 years.
Is it safe to buy off-plan in Israel?
Israeli law (Chok Michkar Dirot) requires developers to provide buyers with a bank guarantee (Avraham Chok Michkar) protecting all payments made. This makes off-plan purchases generally safe — but having a good lawyer review the guarantees is essential.
Do I need an Israeli bank account?
Yes, you will need an Israeli bank account to make payments and receive your mortgage if applicable. Opening one as a non-resident is possible but takes time — start this process early.
This guide is for informational purposes. Always consult a licensed Israeli real estate lawyer before making any property purchase.