Commercial and income-producing assets that are not on any listing board

A property marketed without public advertising: no listing, no address on the site, and details given only to a buyer the office has identified. Owners choose it when they have tenants or staff who should not be alarmed, when the asset is institutional in scale and any publicity invites noise, or when they will sell only at a certain price and do not want to "test the market" in public.

For the buyer it means less competition and better-organized information — in exchange for identifying yourself and accepting the seller's confidentiality terms. The brokers' ethics regulations forbid using information a client provided for any purpose other than the one it was given for, so discretion is a professional duty, not a courtesy.

Sources: Real Estate Brokers Regulations (Ethics and Professional Duties) — no use of client information beyond its purpose

Under the Brokers Law the broker must act in good faith and fairness and disclose to the client every material fact he knows about the property (§8), and must disclose any personal interest in the property or the deal and obtain written consent (§10). At the office this is said in the first conversation and written into the brokerage order: who ordered the service, who pays, and what the office's role is toward each side.

Sources: Real Estate Brokers Law, 1996 — §8 fairness and disclosure, §9 written order and exclusivity (non-residential: up to one year), §10 personal interest, §12 no legal drafting, §14 entitlement to a fee · Real Estate Brokers Regulations (Particulars of a Written Order), 1997

The law sets three conditions for a fee: a valid license, a written order signed before the work begins, and the broker being the effective cause of the binding agreement (§14). The rate is not fixed by law — it is set by agreement, and in commercial and income deals it is customarily fixed in advance in writing, as a percentage of the consideration or an amount, sometimes in tiers by size.

The office charges nothing for the first conversation, the information file or a visit. A fee arises only from a signed transaction. The broker also does not draft legal documents or represent in legal negotiation (§12) — memoranda, letters of intent and the sale agreement are written by the lawyers.

Sources: Real Estate Brokers Law, 1996 — §8 fairness and disclosure, §9 written order and exclusivity (non-residential: up to one year), §10 personal interest, §12 no legal drafting, §14 entitlement to a fee · Real Estate Brokers Regulations (Particulars of a Written Order), 1997

A short conversation that makes clear who the buyer is (person, company, fund), what you are looking for and at what scale — and, where the owner requires it, a confidentiality undertaking and basic proof of capability. None of these is a legal requirement; they are the owner's conditions, and the office respects them.

What the law does require, at the transaction stage: the lawyer (and accountant) accompanying a purchase or sale of real estate is a "business service provider" under the Prohibition of Money Laundering Law and must identify and know the client before providing the service — so every buyer goes through formal identification with their own lawyer, regardless of the seller's conditions.

Sources: Prohibition of Money Laundering Law, 2000 — §8B: lawyers and accountants as "business service providers"; buying, selling or long-leasing real estate is a business service requiring client identification

6% of the value of the right — on a commercial building, an industrial building, a logistics center, land or an action in a real-estate association (regulation 2(1) of the Purchase Tax Regulations). No brackets, and no distinction between an Israeli resident and a foreign resident for a non-dwelling.

One exception: on land covered by a plan allowing at least one dwelling, if a building permit for a dwelling is issued within 24 months of the sale, one sixth of the tax is refunded, i.e. an effective 5% (regulation 2(1a); Executive Instruction 2/25). The relief applies to residential land, not to a commercial or industrial asset.

Sources: Land Taxation Regulations (Purchase Tax), 1974 — reg. 2(1): 6% on a right that is not a dwelling; reg. 2(1a): one-sixth refund (to 5%) on residential land if a permit issues within 24 months · Israel Tax Authority — Land Taxation Executive Instruction 2/25 (Jan 16, 2025) on regulation 2(1a) · Land Taxation Law (Appreciation and Purchase), 1963 — §9 purchase tax, §48A capital-gains rates (individual up to 25%; company at the corporate rate), §49B dwelling-only exemptions

It depends on who the seller is. When the seller is a registered dealer, the price carries VAT (18% as of 2026) and the seller is the taxable person; a buyer registered as a dealer may deduct the input tax, a private buyer may not. When the seller is a private person whose business is not selling real estate and the buyer is a dealer, non-profit or financial institution, it is an "occasional transaction" subject to VAT, and on a sale to a dealer the payment obligation falls on the buyer by self-invoice (regulation 6B).

So every offer on a commercial property must state whether the price includes VAT, who is liable and who deducts — a point the buyer's lawyer and accountant close before signing.

Sources: Value Added Tax Law, 1975 — "occasional transaction" (§1), the taxable person (§16), input-tax deduction for a dealer (§38), deduction on an occasional sale (§43A); the 18% rate note · VAT Regulations, 1976 — reg. 6B: in an occasional land transaction the dealer-buyer pays the VAT by self-invoice

The betterment levy falls on the owner (or long-term lessee) — that is, the seller — at half the betterment, payable no later than realization, and a sale is a realization (Third Schedule to the Planning and Building Law). Capital-gains (appreciation) tax on a non-dwelling: an individual pays up to 25% on the real gain; a company pays at the corporate rate; and the seller has none of the "qualifying dwelling" exemptions. The parties may agree who bears a cost in practice — a contractual arrangement, not a change in the law.

Sources: Planning and Building Law, 1965 — Third Schedule: betterment levy on the owner/long-term lessee (§2), 50% of the betterment (§3), payable by realization including a sale (§1, §7) · Land Taxation Law (Appreciation and Purchase), 1963 — §9 purchase tax, §48A capital-gains rates (individual up to 25%; company at the corporate rate), §49B dwelling-only exemptions

Start with a current Land Registry extract (or a rights confirmation from the Israel Land Authority or a housing company): who the owners are, which mortgages, cautionary notes, liens or third-party rights are registered. A land transaction is completed only by registration, and an undertaking to transact must be in writing (Land Law §§7–8) — so a signed memorandum is not "non-binding".

For a whole building the difference between a registered condominium (§52, §142) and "mushaa" — co-ownership in which no owner holds a specific part (§27) — matters: in mushaa there is no "apartment" that can be sold or mortgaged separately, and every change needs the co-owners.

Sources: Land Registry extract (nesach tabu) — Land Registration and Settlement of Rights Authority · Land Law, 1969 — §7 a transaction is completed by registration, §8 an undertaking must be in writing, §27 co-ownership (mushaa), §52 and §142 condominium

The Tenant Protection Law applies mainly to premises let for key money before 1968; a building completed and let afterwards is outside it (§14), and premises without an entitled tenant on Aug 20, 1968 are outside it as long as they were not let for key money (§9). Where there is a protected tenant: rent derives from historical levels updated by regulations (§42, §45), grounds for eviction are a closed list (§131), and the court may refuse eviction even when a ground exists (§132).

So in an older building every unit is checked separately — how it was let, when, and whether key money was paid — before income and potential are assessed.

Sources: Tenant Protection Law [Consolidated], 1972 — §1 "key money", §9 and §14 scope (buildings completed after 1968 are outside it), §42 and §45 protected rent, §131 grounds for eviction, §132 equitable relief

The city council approved a 1.626% update of arnona rates for 2026 for all properties, a payment date of Jan 1, 2026, and prepayment discounts. The practical question for a building buyer is the property's classification and zone under the tax order, and discounts that must be applied for — for example for an empty building for a limited period.

On planning, the municipality's Urban Renewal Administration publishes the plans in progress and a mapped information layer; a building inside a declared compound is assessed differently from one outside it — in value and in the ability to upgrade on your own.

Sources: Haifa City Council resolution on municipal property tax (arnona) for 2026 — 1.626% update, payment date Jan 1, 2026, prepayment discounts · Haifa Municipality — Urban Renewal Administration: plans in progress and the map layer

First, what is being sold: the real estate, the operation (the operating company) or both. No one may own or manage a home with more than two residents without a license from the Minister (Supervision of Homes Law §2); a license is valid for four years, and the regulations define the "home manager" as the owner, including a lessee or tenant — so a new buyer needs a license in their own name, and the application (in the "Rishyonet" system) requires among other things a room-use plan, an audited balance sheet and health and fire-safety approvals. Nursing wards operate under a Ministry of Health license, and the ministry publishes a database of licensed institutions.

For scale: at the end of 2023 Israel had 27,300 licensed geriatric beds, 22,077 of them for long-term geriatric care. It is a regulated market — occupancy, agreements with funding bodies and the state of the license are worth at least as much as the building.

Sources: Supervision of Homes Law, 1965 — §2: no ownership or management of a home (more than two residents) without a license from the Minister · Supervision of Homes Regulations (Application for a License), 1965 — license valid four years (reg. 7); "home manager" = the owner, including a lessee or tenant · Ministry of Welfare — application for a framework license or renewal ("Rishyonet"): documents and process · Ministry of Health — database of licensed nursing institutions · Ministry of Health — Licensed inpatient beds, December 2023: 27,300 geriatric beds, 22,077 of them long-term geriatric

Most land is leased from the Israel Land Authority: on a transfer of rights a capitalized lease is exempt from consent fees, an uncapitalized one pays a third of the increase in land value (unless the lease says otherwise); on a change of use or utilization the Authority charges permit fees. In National Priority Area A there is allocation without tender for industry and crafts with Ministry of Economy approval, and a preferred enterprise in Development Area A pays a reduced 7.5% corporate tax on preferred income (vs. 16%) — a benefit for the operator, not necessarily the property owner.

For pricing: the Chief Government Appraiser found a national average yield of 6.50% for industry and logistics in the second half of 2024 (offices 6.75%, retail 7.00%), and 563,000 m² of industrial and warehouse construction starts in that half-year. Two published land tenders give a sense of scale in the south: 70 dunams in Idan HaNegev for ILS 174 million (2025) and 20 dunams in Bnei Darom for ~ILS 144 million (2026). The Planning Administration lists the siting considerations for logistics centers: workforce, transport access including the "last kilometer", and proximity to markets.

Sources: Israel Land Authority Council decisions (updated June 16, 2024) — consent fees on transfer: capitalized lease exempt; otherwise one third of the land-value increase · Israel Land Authority — allocation without tender for industry and crafts in a national-priority area, with Ministry of Economy approval · Encouragement of Capital Investments Law, 1959 — §51P: 7.5% corporate tax on preferred income in Development Area A vs. 16% elsewhere · Chief Government Appraiser — commercial real-estate yield survey, H2 2024 (published Oct 21, 2025): national average yields — industry & logistics 6.50%, offices 6.75%, retail 7.00%; 563,000 m² of industrial/warehouse construction starts · Calcalist — Mega Or won an ILA tender for 70 dunams in Idan HaNegev park for ILS 174 million (May 22, 2025) · Calcalist — Issta won an ILA tender for 20 dunams for a logistics center in Bnei Darom for ~ILS 144 million (Feb 26, 2026) · Planning Administration — logistics centers: siting and planning considerations · State Comptroller, May 2023 — land allocation without tender for industry and tourism (summary)

Power. The Ministry of Finance reports in the 2026 Economic Plan connection requests for data centers of almost 3,000 MW, nearly all in high-demand areas — about 16% of installed capacity; the Israel Electric Corporation detailed transmission-grid connection requests in its November 2025 letter to the Ministry of Energy. Under the Electricity Authority's standards, a connection above 8 MVA and up to 250 MVA is made to the 161 kV grid, in a large-consumer process that starts with an application to the system operator with the parcel, a detailed plan and the connection size. A bill memorandum published in April 2026 proposes to define AI data centers from 50 MW as national infrastructure.

So an existing facility with connected and approved power, redundancy (Uptime Institute Tier), documented cooling and connectivity is worth more than land with a promise. Due diligence starts with the connection agreement, not the built area.

Sources: Ministry of Finance — Economic Plan 2026, grid readiness for AI: data-center connection requests of almost 3,000 MW (~16% of installed capacity) · Israel Electric Corporation — comments on the "AI and Energy" strategic review (letter of Nov 6, 2025): transmission-grid connection requests for data centers · Electricity Authority — Standards Book, December 2024 edition: standard 35KA (connections above 8 MVA up to 250 MVA at 161 kV) and 35KG (large-consumer connection process) · Draft bill (memorandum) amending the Planning and Building Law, 2026 (Apr 9, 2026) — AI data centers with expected demand of 50 MW or more as national infrastructure · Uptime Institute — Tier Classification (Tier I–IV)

The Israel Tax Authority publishes a database of real-estate transactions reported to it — property type, area, date and consideration — by parcel or address. It is the basis for comparison before talking price; a professional valuation is done by a licensed appraiser.

Sources: Israel Tax Authority — real-estate transactions database