Can a Foreigner Own Property in Israel?

Yes. A foreign citizen can buy and own an apartment or a house in Israel, and register it in their own name at the Land Registry. There is no citizenship or residency requirement for owning private land. Three questions decide how the purchase works for a foreign buyer: who owns the land, whether the buyer is an Israeli resident for tax purposes, and how the purchase is financed. Note that two different tests apply: "foreigner" under the Israel Lands Law turns on citizenship and the Law of Return, while "resident" under tax law turns on where your life is centered.

Israel Land Authority Land

About 93% of the land in Israel is state land managed by the Israel Land Authority (often still called the Minhal), and most apartments stand on land held on a long lease from the Authority, usually for 49 or 98 years. Under Section 2A of the Israel Lands Law, 5720-1960, rights in such land may not be transferred to a "foreigner" without approval. A foreigner, for this rule, is a person who is not an Israeli citizen or resident and is not eligible to immigrate under the Law of Return. In practice, a buyer who is eligible under the Law of Return does not need this approval, even with only a foreign passport. For a home, the approval can come from the Authority's director, who may approve a residential unit bought by an individual who owns no other residential unit in Israel; other cases go to a more senior approval. We check the land's status and whether an approval is needed during due diligence, before you sign.

Residency, Not Citizenship, Decides the Tax

Purchase Tax depends on tax residency, not on passport. An Israeli citizen who has lived abroad for years may be taxed as a non-resident, and a foreign citizen who lives in Israel may be a resident. The difference on a typical apartment is large, so we review the buyer's status before the agreement is signed. The rates are set out in the Purchase Tax section below.

Financing

Under Bank of Israel Directive 329, the limit turns on citizenship. A buyer who is not an Israeli citizen ("nonresident" in the directive) can borrow up to 50% of the property's value. An Israeli citizen buying a single apartment can borrow up to 75%, and up to 70% for a replacement apartment, even if they live abroad. Get approval in principle from an Israeli bank before signing, because the purchase agreement is not conditional on financing unless it says so.

Buying From the UK or the US Without Flying In

You sign a power of attorney where you live, before a notary with an apostille (in the UK, from the FCDO) or with your signature authenticated at an Israeli consulate. Your Israeli lawyer then signs the agreement, reports and pays the Purchase Tax and registers the property. How we work with clients abroad.

How to Buy an Apartment in Israel, From Offer to Tabu

A resale of an apartment that is already registered at the Tabu often takes about 3 to 6 months from signing to registration in the buyer's name. Most of that time goes to clearing the seller's mortgage and obtaining the tax and municipal approvals. These are the seven stages, in the order they happen.

1. Before You Sign Anything

   Brokers often present a short memorandum of understanding (zichron devarim) at the first meeting. A memorandum that sets out the property, the price and the parties may be held to be a binding agreement. Do not sign it, or pay a deposit, before a lawyer has seen the title and the text. If you need a mortgage, ask your bank for approval in principle now.

2. Title and Planning Checks

   We order the Land Registry extract (or the Israel Land Authority or management company confirmation), check mortgages, liens, warning notes and the seller's identity, and compare the building permit with what was actually built. For an inherited apartment, we check that the succession order or probate order has been registered.

3. Negotiating and Signing the Agreement

   The seller's lawyer usually drafts the contract and we negotiate it. Once both sides sign, the agreement binds them, so every condition you need, such as the handover date or a mortgage-related payment schedule, has to be written into it.

4. Warning Note in Your Favor

   Right after signing we register a warning note at the Land Registry under Section 126 of the Land Law. From then on, a conflicting transaction will not be registered without your consent or a court order (Section 127).

5. Reporting and Paying the Purchase Tax

   The purchase is reported to the Israel Tax Authority within 30 days (Section 73 of the Land Taxation Law), and the Purchase Tax is generally paid within 60 days of the transaction. A late report or payment adds linkage, interest and fines.

6. Payments, Mortgage Release and Handover

   You pay according to the schedule, the seller's bank receives what it needs to release its mortgage, and the seller provides the tax clearances and the municipal certificate that confirms the local taxes and any betterment levy have been paid. The keys are handed over against the agreed payment.

7. Registration in Your Name

   With the approvals in hand, the deed of transfer is filed and the property is registered in your name. Under Section 7 of the Land Law, the sale is completed only on registration, so we follow the file until your name appears on the register.

How Much Purchase Tax Does a Non-Resident Buyer Pay?

A non-resident buyer pays Purchase Tax (Mas Rechisha) of 8% on the part of the price up to ₪6,055,070 and 10% on the part above it, even when the apartment will be the buyer's only home. These are the additional-apartment rates, set by a temporary order that runs until December 31, 2026 unless extended, and the brackets are frozen until January 15, 2028. A buyer who becomes an Israeli resident within 2 years of the purchase, and for whom it is the only apartment, can get the single-apartment rates and a refund of the difference. For a new apartment bought from a developer, the period can be counted differently, so we check the dates.

Example, an apartment priced at ₪3,000,000: a non-resident pays ₪240,000; an Israeli resident buying an only apartment pays about ₪45,538; a new immigrant under Regulation 12A pays about ₪5,106. The figures follow from the 2026 brackets and are confirmed for each purchase.

The purchase must be reported to the Israel Tax Authority within 30 days, under Section 73 of the Land Taxation (Capital Gain and Purchase) Law, 5723-1963, and the tax is generally paid within 60 days of the transaction. A preliminary estimate can be run on the Tax Authority's Purchase Tax simulator, but the final figure depends on the buyer's residency and the exact terms of the deal.

New immigrants buying their home have a separate track. Since August 15, 2024, Regulation 12A of the Purchase Tax Regulations gives the reduced rates for one residential apartment bought from one year before aliyah to seven years after it, so a family can buy before the move. Investment and additional apartments no longer get the reduced rate, and olim who arrived before August 15, 2024 may be able to choose the earlier terms. Residency is a question of fact, decided for each buyer, so we review your status before the agreement is signed and confirm the rate in force on the date of purchase.

Registering the Apartment in Your Name After Closing

After a resale, registration at the Tabu usually follows 3 to 6 months after signing, once the Purchase Tax approval, the seller's capital gains tax approval and the municipal certificate are issued. Until then you hold a contractual right protected by the warning note, not ownership. Many apartments are recorded at the Israel Land Authority or with a developer's management company instead of the Tabu, and each has its own transfer documents.

Leaving registration for later is a common oversight that can cause problems years later, when the apartment is sold, mortgaged or inherited. We follow the file until your name appears on the register. For a property that was never registered correctly, see our page on property registration in Israel.

Frequently Asked Questions

Answers to the questions we hear most often from buyers in Israel and abroad.

This page is general information about Israeli law as of October 2026, not legal advice for your specific matter. Tax rates and thresholds change, and we confirm the current figures for each purchase.
Legislation cited on this page: Land Law, 5729-1969 (Sections 7, 8, 126 and 127) · Land Taxation (Capital Gain and Purchase) Law, 5723-1963 (Section 73) · Israel Lands Law, 5720-1960 (Section 2A) · Sale (Apartments) (Assurance of Investments) Law, 5735-1974 (Section 2) · Sale (Apartments) Law, 5733-1973 · Real Estate Brokers Law, 5756-1996 (Sections 9 and 14).