Selling Israeli Property While Living in the US
Selling Israeli Property While Living in the US
Many Americans who own property in Israel eventually decide to sell, whether to rebalance investments, fund a purchase in the United States or simplify an estate. Selling from abroad is common and entirely workable, but it requires more planning than a local sale. You will rely on a lawyer, a broker and sometimes a property manager in Israel, sign documents through a consulate or with an apostille, handle Israeli and US tax questions and arrange a secure transfer of proceeds. The steps below outline how the process typically unfolds and where overseas sellers most often run into delays.
Assemble Your Israeli Team
Start with an Israeli real estate lawyer who will represent you in the sale. Then choose a licensed broker familiar with the neighborhood. If the apartment is rented, involve your property manager early, since tenants' cooperation affects viewings and the handover date.
Agree in writing on the broker's fee and the scope of the engagement, and ask for regular written updates.
A broker who can show the apartment on video calls and send feedback after each viewing gives you a realistic sense of buyer interest without needing to be there in person.
Prepare the Property and the Paperwork
Before listing, your lawyer should obtain a registry extract and check for issues that could slow the sale, such as old mortgages, warning notes, unapproved additions or municipal debts. Solving these in advance makes the property more attractive.
Gather the purchase contract, tax assessments, receipts for improvements and any building or house committee documents. These support the capital gains calculation and answer buyers' questions.
Signing From the United States
You can sign the sale agreement and related documents yourself through an Israeli consulate or before a US notary with an apostille. Many overseas sellers instead grant a specific power of attorney to their lawyer to sign on their behalf once terms are agreed.
If you use a power of attorney, define its scope clearly, including the minimum price or the approved contract version, and whether the lawyer may receive funds.
Sale agreement and appendices
Irrevocable power of attorney for the transfer
Tax declarations to the Land Taxation office
Requests to remove your mortgage, if any
Tax Clearances and Approvals
The sale must be reported to the Land Taxation office, and capital gains tax must be settled or an exemption confirmed. The municipality must also confirm that property tax and any betterment levy have been paid. If the land is leased from the Israel Land Authority, its consent may be needed.
Delays in these approvals often hold up part of the purchase price. Starting the paperwork early shortens the wait.
Receiving the Proceeds
Buyers usually pay into your Israeli bank account or your lawyer's trust account according to the schedule in the contract. Before moving large sums to the United States, confirm with your Israeli bank what documentation it needs and compare conversion options.
US banks may ask about the source of incoming international transfers. Keep the sale contract and tax approvals handy to answer questions quickly.
US Reporting After the Sale
Inform your US CPA about the sale, the Israeli tax paid and the currency conversions. The sale is usually reportable in the United States, and foreign account reporting obligations may apply to the Israeli bank account that received the funds.
Filing correctly in both countries closes the chapter cleanly and avoids queries years later.
Consider also whether you will reinvest. If you plan to buy another property, in Israel or in the United States, tell your advisors before the sale closes, since the order and timing of the two transactions can influence the tax picture on both sides.
Frequently asked questions
Do I have to travel to Israel to sell
Not necessarily. With a power of attorney and remote signing through a consulate or apostille, many sellers complete the entire sale without traveling.
Can my tenant stay after the sale
It depends on the lease and the buyer's plans. Some buyers want the rental income, others need vacant possession. Your lawyer will align the contract with the lease.
How long does it take to receive the full price
Most of the price is typically paid over a period agreed in the contract, with a portion held until tax approvals and registration steps are complete.
Should I close my Israeli bank account after the sale
Keep it open until all payments, refunds and final bills are settled. Your lawyer and accountant may still need it for some time.
Elkayam Group
From our base at Rival Street 37 in Tel Aviv, Elkayam Group brings three generations of property experience and an heritage dating to the forties. Our Hebrew, English and French speaking team regularly works with overseas owners, including through urban renewal, and can coordinate the local professionals needed for a sale managed from the United States.
Ready to sell your Israeli apartment from the US. Talk with our team about building the right local team.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv