Israel Property Guide for International Buyers
Israel Property Guide for International Buyers
Update: Israel's national TAMA 38 plan expired on 18 May 2026. New building-strengthening and renewal projects now go through alternative routes, such as municipal replacement plans and pinui-binui.
"israel real estate" is one of the most common searches we receive from clients abroad, and the honest answer is that the right choice depends on the street, the building and your plans. Here is the local picture.
Official market data — Israel (CBS, 2026)
National average: ₪2,392,000 in H1 2026 (+3.9% vs. H1 2025); the CBS housing price index for February–March 2026 was down 1.2% year on year
Purchase tax for a foreign resident or investor: 8% up to ₪6,055,070 and 10% above; bank financing for non-residents is capped at 50% of the property value (up to 75% for an Israeli resident buying a single home)
Source: Israel Central Bureau of Statistics — average apartment prices for the first half of 2026 (published 15 September 2026), the housing price index (published 15 May 2026) and the Q1 2026 rent survey. These are city-wide averages; the actual price depends on the neighborhood, size, floor and condition. Before any decision we show you real transactions recorded with the Israel Tax Authority in the area you are considering.
Below you will find what Israel offers, which areas suit which buyers and tenants, what the local market looks like and how Kobi Elkayam Real Estate helps clients who are searching from abroad.
Israel at a glance
Israel is a small, dense country where most of the population and most of the housing demand sit along the Mediterranean coastal plain, between Haifa in the north and Ashdod in the south, with Jerusalem in the hills to the east.
The market is dominated by apartments in multi-family buildings; private houses are concentrated in older suburbs, moshavim and community settlements. Land is mostly state-owned and leased long-term through the Israel Land Authority, with a smaller share of privately owned (tabu) land.
Foreign residents can buy freely in Israel. Purchase tax is higher for non-residents and for second homes than for Israeli first-time buyers, so tax planning belongs at the start of the process, not the end.
Getting around:Israel Railways links the coastal cities and Jerusalem, Ben Gurion Airport sits between Tel Aviv and Jerusalem, and Highways 2, 4, 6 and 1 carry most of the intercity traffic.
Buying, renting and investing in Israel
Israel attracts three kinds of overseas clients: families who want a second home they will actually use, people planning a move to Israel, and investors who want a rental in a market with structural demand. Below is what each should know.
For a holiday or family home –proximity to the sea, the centre or your community matters more than yield; consider who will manage the property between visits
For a move to Israel –most clients rent for a year first, then buy once schools, work and community are settled
For investment –model purchase tax at investor rates, realistic rent, management costs and Israeli and home-country tax before comparing yields
For all three –an Israeli lawyer, a clear view of the building's registration and planning status, and a local team that can act when you are not here
Areas to know in Israel
Location within Israel matters more than almost any other factor. These are the areas our clients ask about most:
Tel Aviv and Gush Dan –the economic centre – Tel Aviv, Ramat Gan, Givatayim, Herzliya, Bat Yam, Holon and Rishon LeZion
Jerusalem and its surroundings –the capital plus Beit Shemesh, Mevaseret Zion, Modi'in and the Gush Etzion communities
The Sharon coast –Netanya, Herzliya, Ra'anana, Kfar Saba and Caesarea – popular with French and Anglo buyers
Haifa and the north –Haifa, the Krayot, Nahariya, Akko, Karmiel, Tiberias and the Galilee villages
The south –Ashdod, Ashkelon, Beer Sheva, Eilat and the Negev towns
Housing stock and who buys in Israel
What you will find on the market: new towers with underground parking and a reinforced safe room (mamad) in every apartment, mid-century walk-ups that are being rebuilt under the TAMA 38 and pinui-binui urban-renewal programmes, and a smaller stock of villas, cottages and garden apartments.
Who you will be competing with: Israelis upgrading or investing, new immigrants (olim), diaspora families from the United States, France, the United Kingdom and Latin America buying a second home, and overseas investors looking for rental income in a supply-constrained market.
Every purchase runs through a lawyer who registers a caveat (he'arat azhara) in the Land Registry, and payments are staged against milestones written into the contract.
Costs and taxes to plan for
Purchase tax (mas rechisha) –progressive, filed with the Israel Tax Authority; non-residents and buyers of a second home pay higher brackets than Israeli first-home buyers, and rates change, so model this first
Legal fees –your lawyer's fee is customarily a small percentage of the price plus VAT, and on new-build purchases the developer's lawyer also charges a capped registration fee
Agent fee –customarily a percentage of the price plus VAT, paid by each side to its own agent
Registration and ILA fees –Land Registry fees, or ILA consent and lease fees on state land
Ongoing –arnona, building fees, insurance, and Israeli tax on rental income if you let the property
On exit –capital-gains tax (mas shevach) with exemptions and indexation, and possibly a betterment levy if planning rights were added
Mortgages: Israeli banks lend to non-residents, but the Bank of Israel caps loan-to-value, and buyers who are not Israeli residents are generally treated like investors – a lower cap than resident first-home buyers, typically up to about half of the value – with documentation of foreign income and assets. A mortgage broker who works with overseas clients shortens this considerably.
How Kobi Elkayam Real Estate helps
Search and shortlisting in Israel –agency, private and off-market sources, screened in person
Video and in-person viewings –timed to your visits to Israel
Negotiation –against verified transaction data, through your lawyer
Professional team –introductions to real-estate lawyers, tax advisers, mortgage brokers and appraisers who work with overseas clients
Developer projects and complex deals –access to the group's own projects and to combination and urban-renewal opportunities
After the purchase –management, letting and renovation partners so the property works while you are abroad
Can a foreigner buy real estate in Israel?
Yes. Non-residents can buy freely in Israel and hold the property in their own name. You will need an Israeli lawyer, a tax file number for the purchase-tax filing and a way to transfer funds in shekels; a notarised power of attorney lets your lawyer sign if you cannot be in Israel.
How long does a purchase in Israel take?
From an accepted offer to signing a contract is usually two to four weeks of legal checks and negotiation. Completion follows the payment schedule in the contract – often two to four months for a resale, and the construction timeline for a new-build purchase. Registration of title follows completion.
What is the difference between Tabu and ILA property?
Tabu property is registered freehold in the Land Registry. ILA property is state land held on a long-term lease from the Israel Land Authority, which is the majority of land in Israel. Both are bought and sold normally, but ILA leases carry their own consent and fee rules, and some leases to non-residents have specific conditions your lawyer will check.
Is Israel a good place for a holiday home or an investment?
Israelis upgrading or investing, new immigrants (olim), diaspora families from the United States, France, the United Kingdom and Latin America buying a second home, and overseas investors looking for rental income in a supply-constrained market – that is the demand you would be buying into. Every purchase runs through a lawyer who registers a caveat (he'arat azhara) in the Land Registry, and payments are staged against milestones written into the contract. For a holiday home, the question is how much you will use it and who will manage it between visits; for an investment, model purchase tax, realistic rent and management before comparing with other cities.
Related guides
Talk to us about a purchase in Israel.Call +972-53-658-4252, write to support@kobielkayamrealestateltd.com, orleave your detailsand a member of the team will get back to you in English, French or Hebrew.