Guide
Buying property in Israel as a foreign resident
A foreign resident can buy property in Israel — there is no residency or citizenship requirement. Two things differ for a non-resident: which purchase-tax schedule applies, and what a bank will lend. This page sets out both, in the order a purchase actually runs, and says which figures expire and when.
Every figure below is published by the Israeli Tax Authority (purchase-tax instruction 1/2026) or the Bank of Israel (Directive 329), and was last verified on 17 August 2026. Where a figure is time-limited, the page says so.
How a purchase runs, from first contact to registration
The sequence is the same whether the buyer lives in Haifa or abroad. Distance changes the logistics, not the order.
- 01
Broker
Search, shortlisting and viewings, then negotiating price and terms once a property is chosen.
- 02
Your lawyer — engaged early, alongside the search
Israel has no separate conveyancing profession. The buyer’s own lawyer does that work: checking the property’s legal standing and carrying the transaction through contract to registration. Having one in place before an offer is made is standard practice here, not an optional extra.
- 03
Appraiser
A valuation, normally required by the lender where the purchase is financed, and worth having for your own decision even where it is not.
- 04
Bank or mortgage adviser
Financing is assessed against the Bank of Israel limits below and the bank’s own underwriting. Start that conversation before choosing a specific property.
- 05
Signature
Once your lawyer and both sides are satisfied with the contract.
- 06
Purchase tax and registration
Payment and registration close the transaction.
The broker coordinates that process and represents you through it. The legal, tax, valuation and mortgage conclusions at each step belong to the professional responsible for them.
Purchase tax: there is no separate non-resident schedule
Israeli law sets favorable “single apartment” brackets, and grants them to an individual who is a resident of Israel. A buyer who does not meet that test does not enter the single-apartment track — even where the property is their only one in Israel — and is charged on the schedule used for an additional apartment. That is the whole mechanism; pages offering a “foreign-resident table” are describing this one.
One exception is written into the statute itself (section 9(c1c)(4)(b) — in the Hebrew numbering, 9(ג1ג)(4)(ב)) and has its own page for buyers weighing aliyah timing: a buyer who becomes an Israeli resident for the first time, or a long-term returning resident (toshav chozer vatik), within two years of the purchase is treated as a resident for this purpose. If you are planning aliyah or a return around the time of purchase, that is the clause to raise with a tax adviser before signing.
| Value of the property | Rate |
|---|---|
| Up to ₪1,978,745 | 0% |
| ₪1,978,745 – ₪2,347,040 | 3.5% |
| ₪2,347,040 – ₪6,055,070 | 5% |
| ₪6,055,070 – ₪20,183,565 | 8% |
| Above ₪20,183,565 | 10% |
| Value of the property | Rate |
|---|---|
| Up to ₪6,055,070 | 8% |
| Above ₪6,055,070 | 10% |
Two different expiry dates, and they matter. The single-apartment brackets are frozen to 15 January 2028. The non-resident schedule is a temporary order expiring 31 December 2026; as at the check date above, no extension had been legislated. If you are transacting near the end of 2026, confirm the rate in force on the day of purchase — not the rate you saw while searching.
This page summarizes the structure. For the definitive brackets, any update, and a calculation on your own numbers, the Hebrew guide and the Israel Tax Authority (רשות המסים) are authoritative: מדריך מס רכישה.
Financing: published ceilings, and one question they do not answer
Bank of Israel Directive 329 caps how much of a purchase a mortgage may cover, by category:
| Category | Maximum financing | Minimum equity |
|---|---|---|
| Single apartment | 75% | 25% |
| Replacement apartment (moving home) | 70% | 30% |
| Investment apartment | 50% | 50% |
Alongside those: repayment may not exceed 50% of income, no more than 66.7% of the loan may sit in a variable-rate track, and the term may not exceed 30 years.
Directive 329 defines the single-apartment and replacement-apartment categories for an individual who is an Israeli citizen, and defines a foreign resident as anyone who is not — so the first two rows are ceilings a non-resident does not fall under. The investment-apartment ceiling is the published one that applies.
The loan-to-value a bank will actually offer a non-resident is set by the lending bank itself, and it is not published. Any number here would therefore be a guess you might budget against, so this page does not print one. Ask the bank, or a mortgage adviser, before you commit to a price.
Buying at a distance
A power of attorney lets your lawyer or another trusted representative sign for a step you cannot attend. Its required form, scope and any notarization or apostille depend on where it is signed and what it must authorize — confirm the specifics with your lawyer before relying on one.
Moving funds into Israel involves conversion, transfer mechanics and reporting that sit with your bank and your accountant. Professional fees carry VAT at 18% on top of the fee, separately from purchase tax.
A documented viewing is one where what was seen and asked is written down at the time — condition room by room, the questions raised and the answers given — rather than reconstructed from memory once several properties have blurred together. That record is what your lawyer and appraiser work from afterwards.
What to have ready before the first conversation
- What the property is for, and roughly when — home, investment, or a step toward relocating
- A budget range, and whether financing is expected
- Your current country of tax residence, since that decides which schedule applies
- Whether a lawyer, and if financing a mortgage adviser, are already engaged
- How you expect to sign: in person, by power of attorney, or a mix
Common questions
Can a foreigner buy property in Israel?
Yes. There is no residency or citizenship requirement to buy. What differs for a non-resident is which purchase-tax schedule applies, and separately what financing a bank will offer.
How much purchase tax does a non-resident pay in Israel?
The favorable single-apartment brackets are given in law to an individual who is a resident of Israel, so a non-resident is charged on the other schedule: 8% up to ₪6,055,070 and 10% above it. That schedule is a temporary order valid to 31 December 2026.
Do I have to be in Israel to buy a property there?
A power of attorney can cover a signature you cannot attend in person. Exactly what may be handled remotely, and in what form, depends on the transaction and belongs in a direct conversation with your lawyer.
What if I am planning to make aliyah?
A new immigrant falls under a separate schedule with its own brackets, not the non-resident one. And a buyer who becomes an Israeli resident for the first time, or a long-term returning resident (toshav chozer vatik), within two years of the purchase is treated by the statute as a resident for purchase-tax purposes (section 9(c1c)(4)(b) — in the Hebrew numbering, 9(ג1ג)(4)(ב)). Which status applies to you on the day of purchase is a residency question for a lawyer or accountant — it does not follow automatically from a passport.
Is buying property in Israel from the USA or the UK any different?
The legal sequence is identical wherever you live — the same tax schedules, the same registration. What changes is logistics: a power of attorney your Israeli lawyer prepares can be signed at an Israeli consulate near you or in another form the lawyer instructs; transferring the funds means source-of-funds paperwork with both your bank and the Israeli side, worth starting early; and viewings, appraisal and signatures need a plan that respects the time difference. We work with buyers from the US and the UK routinely — the process is built for it.