Buying New Construction in Israel from Sao Paulo
Buying New Construction in Israel from Sao Paulo
In Brazil, buying off-plan is familiar to almost every paulistano, with launches in nearly every neighbourhood of the city. In Israel the concept is similar, but buyer protection and payment structure follow their own legislation, known as the Sale Law for apartments. For someone living in Sao Paulo, following a construction site thousands of kilometres away calls for extra attention to contracts, guarantees and timetables. This guide explains the essential points for buying a new apartment in Israel, in greenfield projects or in urban renewal schemes, without naming specific developments and always recommending independent legal advice.
How it differs from a Sao Paulo launch
In Sao Paulo the buyer typically pays monthly instalments during construction and finances the balance on delivery. In Israel payments are tied to construction milestones and are often linked to a construction cost index, which means the amounts can change over the building period.
Another difference is the legal requirement to secure the money paid, which protects the buyer if the developer fails to complete the building. Understanding that mechanism is the single most important step for a buyer abroad.
Bank guarantees and the payment voucher book
Under the Sale Law, payments beyond an initial amount must be covered by a bank guarantee or another security mechanism recognised by law. In many projects the buyer receives a voucher book linked to the project finance account.
Your lawyer checks that each payment is protected before the money leaves Sao Paulo, and that the guarantee is issued in your name.
Confirm the guarantee before every payment
Read the technical specification attached to the contract
Understand how indexation affects the instalments
Check the delivery date and the compensation for delay
New neighbourhoods and urban renewal
Besides entirely new neighbourhoods, many off-plan apartments come from pinui-binui or TAMA 38 projects in which older buildings are strengthened or rebuilt. Those projects sit in established areas with shops and transport already in place.
They also depend on approvals and agreements that can move the timetable, so they require careful assessment of where the project really stands.
Cities that interest paulistanos
Urban renewal is especially active in Tel Aviv and in the ring of cities around it, including Ramat Gan, Givatayim, Holon and Bat Yam. Netanya and the Sharon region attract buyers who want the beach and newer neighbourhoods, while Jerusalem, Modiin and Beit Shemesh receive traditional and religious families.
The choice usually combines a future personal use, such as a child moving to Israel, with the long-term potential of the area. Visit the neighbourhood at different times of day, look at schools, shops and the planned transport lines, and ask the municipality which other plans are approved nearby, since a quiet street today may become a busy construction zone for several years.
Following the build from Sao Paulo
With a time difference of several hours, schedule regular updates with your lawyer and ask the developer for progress reports and photos. Some buyers appoint an independent engineer to check the finishes before handover.
Keep a single folder, shared with your lawyer, containing the contract, the specification, every payment voucher and every guarantee, so nothing depends on memory or on email threads. Plan a visit close to delivery to inspect the apartment in person and list defects in writing. Israeli law gives buyers a period during which the developer must repair defects, and a written record helps.
Taxes, exchange and financing
Purchase tax, mortgage terms and currency transfers all affect the real cost of a new apartment. Israeli banks can finance part of the price for non-residents, usually with more conservative conditions.
Coordinate the payment schedule with your bank in Israel and with a Brazilian accountant, so every transfer from Brazil is documented and declared correctly.
Frequently asked questions
Is my money safe when I buy off-plan in Israel
The Sale Law requires the developer to secure payments beyond an initial amount, usually through a bank guarantee. Your lawyer should confirm that each payment is covered before you transfer it.
Can the price change during construction
Contracts are often linked to a construction input index, so instalments can change. Ask your lawyer to explain exactly which part of the price is indexed.
What if delivery is delayed
Israeli law and the contract define compensation for delays beyond a certain point. Read those clauses carefully and keep records of all dates.
Do I need to be in Israel at handover
It is recommended, but you can send an engineer or trusted representative with a power of attorney. A professional inspection is useful either way.
Elkayam Group
Kobi Elkayam Real Estate Ltd, operating as Elkayam Group from Rival Street in Tel Aviv, draws on a family heritage since the forties and three generations of experience. The company focuses on development, urban renewal, pinui-binui and TAMA 38 and handles combination and complex deals with backing companies and partners that can provide guarantees. Its team works in Hebrew, English and French and helps buyers from Sao Paulo understand how new construction projects in Israel are structured.
Considering a new apartment in Israel Ask Elkayam Group how renewal and new projects work.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv