How to Buy Property in Israel

Your complete step-by-step guide — from search to keys, everything you need to know

The Property Buying Process in Israel

Buying property in Israel follows a well-established process, though it differs significantly from most Western countries. There's no MLS system, no escrow company, and no real estate closing agents. Instead, the process is driven by attorneys who handle everything from contract negotiation to registration. Here's your roadmap.

Step 1: Define your budget. Include purchase tax (Mas Rechisha), attorney fees (0.5-1.5%), agent fees (1-2%), and other costs totaling 10-15% above the purchase price. Step 2: Hire an Israeli real estate attorney. This is essential — never share the seller's attorney. Step 3: Search with a licensed agent. Properties are listed on platforms like Yad2, Madlan, and through agents.

The Transaction Process

Step 4: Make an offer. Verbal offers are not binding in Israel. Everything is negotiable. Step 5: Attorney due diligence. Your attorney checks the title (Tabu extract), zoning, permits, liens, and any legal issues. Step 6: Sign the purchase agreement. Both attorneys negotiate the contract terms, payment schedule, and conditions. Step 7: Register a caveat (He'arat Azhara). This protects you against double-sale.

Step 8: Payment schedule. Typically 3-5 payments over 2-6 months. First payment (10-20%) at signing. Step 9: Tax payments. Pay purchase tax within 45 days. Seller pays capital gains tax (Mas Shevach). Step 10: Property transfer. Final payment, key handover, and registration at Tabu (Land Registry).

Special Considerations for Foreign Buyers

Non-residents can buy property in Israel with very few restrictions. You'll need: a valid passport, an Israeli bank account (can be opened remotely), power of attorney for your Israeli lawyer (if not present in person), and proof of funds. The entire process can be managed remotely with the right team. Our bilingual team handles all aspects for international buyers.

Pros

Clear legal framework, Strong property rights, Growing market, No restrictions for foreigners, Attorney-driven process ensures protection

Cons

No cooling-off period, Process in Hebrew, Multiple taxes, Slow Tabu registration, Complex for first-timers

Frequently asked questions

Do I need to be in Israel to buy property?

No. With a power of attorney given to your Israeli attorney, the entire process can be handled remotely. You'll need to open an Israeli bank account (some banks offer remote opening). Many international buyers complete purchases without visiting Israel, though we recommend at least one visit.

How long does the buying process take?

Typically 2-6 months from offer to key handover. The contract negotiation takes 1-3 weeks, payments are spread over 2-6 months per the agreement, and Tabu registration can take additional months (but you get the keys earlier). Off-plan purchases take 2-4 years.

What are the total costs beyond the purchase price?

Budget an additional 10-15% for: Purchase tax (Mas Rechisha) 0-10% depending on buyer status and property value, Attorney fees 0.5-1.5% + VAT, Agent commission 1-2% + VAT, Tabu registration fees ~0.1%, Bank fees if using mortgage, and miscellaneous costs.

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