Buying New Construction in Israel from Salvador
Buying New Construction in Israel from Salvador
Buying a flat off plan is common in Salvador, and many Bahian buyers know the rhythm of paying in stages while construction advances. The same model is widely used in Israel, but it operates under a specific law that protects buyers through guarantees tied to each payment. For someone thousands of kilometres away, understanding those protections is essential. This guide explains how to assess the developer, what the contract should contain, how the guarantees work, which delays can occur and how to plan staged transfers of money, always with an Israeli lawyer and with the support of a Brazilian accountant.
How Israeli law protects the off plan buyer
The Israeli Sale Law for apartments requires the developer to secure the money a buyer pays before handover, usually through a bank guarantee or an insurance policy. In practice every payment should be matched by the corresponding guarantee.
Your lawyer should confirm that payments go into the project account supervised by the accompanying bank and that a guarantee is issued for each instalment. Never pay third parties directly or outside the agreed mechanism.
For a buyer in Salvador the main challenge is not being able to visit the site often. That makes the quality of the paperwork, and a local representative who can walk the site, even more important than for someone living in Israel.
Keep every receipt, guarantee and addendum in a digital folder sorted by payment. That folder will be useful to your lawyer, your Israeli tax advisor and your accountant in Brazil at every stage.
Assessing the developer and the scheme
Before signing, check the developer's track record, the status of the building permit, the bank backing the project and the land registration. Visit the site or ask for recent videos, and compare the technical specification with what the sales presentation promised.
Status of the permit and the zoning plan
Accompanying bank and type of guarantee
Delivery date and delay clauses
Technical specification attached to the contract
Contract and annexes that deserve attention
An off plan contract usually comes with floor plans, a technical schedule and a payment timetable. Clauses on design changes, indexation of payments, the right to internal alterations and the delivery date are points your lawyer should negotiate or clarify.
Staged transfers from Bahia
Because payments follow the construction, money will travel from Salvador to Israel in several exchange operations, each exposed to currency movements. Plan them with your bank and with a Brazilian accountant, who will also explain how to declare amounts paid toward a property still being built.
Following the works and taking delivery
During construction, ask for regular updates. At handover, carry out or commission a technical inspection to record defects. The law sets periods during which the developer is responsible for faults, and the inspection report is the basis for demanding repairs.
Comparing launches in different cities
New schemes in Tel Aviv and the centre are often high rise towers with full shared facilities, while growing cities in the south and north offer entire new neighbourhoods taking shape. In Jerusalem, stone facade rules and height limits in some areas shape the final product. For a Salvador buyer, comparing launches in several cities against the same criteria for guarantees, timing and specification is the clearest way to see which scheme really fits the family goal.
Taxes at purchase and afterwards
The purchase triggers Israeli purchase tax, with rules on when it is paid. In Brazil the asset is declared according to the payments made. Consult an Israeli tax advisor and a Brazilian accountant, because every case is different.
Frequently asked questions
Does the bank guarantee cover everything I pay
The law links guarantees to payments made before handover. Your lawyer confirms the scope of the guarantee in your particular contract.
Can I make internal changes to the flat
Many developers allow alterations within a set window and at a defined cost. Make sure any agreement is written down.
What happens if the works are delayed
Both the law and the contract provide consequences for delay. Your lawyer explains the rights that apply to your agreement.
How do I declare a property under construction in Brazil
Generally by the amounts actually paid. A Brazilian accountant will show you the correct way to report it.
Elkayam Group
Elkayam Group operates in Israeli real estate through Kobi Elkayam Real Estate Ltd, headquartered on Rival Street 37 in Tel Aviv. Behind it stands a family tradition dating from the forties and three generations of builders and managers. We are active in development, urban renewal, pinui-binui, TAMA 38 and combination deals, backed by partner companies and able to provide guarantees. Working in Hebrew, English and French, we help overseas buyers read off plan contracts with the right professionals.
Looking at a new build in Israel. Contact us to review the scheme and its guarantees with you.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv