Selling Property in Israel
Selling Property in Israel
If you own property in Israel and are thinking of selling – especially from abroad – this page explains how the process works, what it costs, and how to get the best price without flying in for every step.
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.
This page walks through the sale process in Israel from the seller's side – valuation, marketing, taxes, the contract stages and what to do if you live 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.
How a property sale works in Israel
Selling a property in Israel from abroad is entirely feasible – many of our sellers are diaspora families who inherited or bought years ago. The sale is lawyer-driven: your Israeli lawyer prepares the contract, handles the capital-gains tax filing (mas shevach) and the municipal betterment levy (hetel hashbacha) if one applies, and can act under a notarised power of attorney if you cannot travel.
Valuation – we assess the property against actual transactions in the building and street, not asking prices, and advise on light works that lift the sale price.
Paperwork – Land Registry extract, building file, arnona and va'ad bayit clearance, and any tenancy documents.
Marketing – professional photography, Hebrew and English listings, our buyer database and, for prime property, discreet off-market placement.
Offers and contract – negotiation, then a contract with staged payments and a caveat for the buyer.
Tax and completion – mas shevach filing with exemptions checked, betterment levy if applicable, and transfer of title on the final payment.
Sellers who live abroad should plan for the tax questions early: whether an exemption on a single residential apartment applies, how the gain is calculated with indexation, and how the Israeli tax interacts with reporting in your home country.
Areas to know in Israel
Each part of Israel has its own character, price level and buyer profile:
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.
How Kobi Elkayam Real Estate helps
Kobi Elkayam Real Estate Ltd is part of the Elkayam Group, a Tel Aviv family business whose roots go back to 1945 and is now in its third generation. The group is active as a developer – in urban renewal, combination deals and complex transactions – and as a brokerage for international clients, working in English, French and Hebrew from its offices at 37 Rival Street, Tel Aviv.
Valuation against real transactions –not asking prices
Marketing in Hebrew and English –to Israeli and international buyers
Off-market placement for prime property –discretion when it matters
Coordination with your lawyer and accountant –mas shevach, betterment levy and power of attorney
Alternatives to a straight sale –for older buildings, a combination or urban-renewal deal can be worth more than selling
Can a foreigner buy properties 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.
Do I pay tax when I sell a property in Israel?
Capital-gains tax (mas shevach) applies to the gain, calculated with indexation, and a single residential apartment may qualify for an exemption depending on your circumstances and residency. A betterment levy may apply if planning rights were added while you owned the property. Your lawyer files the returns with the Tax Authority as part of the sale.
Can I sell from abroad?
Yes. A notarised power of attorney – typically signed at an Israeli consulate or before a notary with an apostille – lets your Israeli lawyer sign the contract and complete the sale. We handle valuation, marketing, viewings and negotiation while you stay in contact remotely.
Should I renovate before selling?
Light works – paint, lighting, fixing visible defects – usually pay for themselves. Full renovations rarely do, because Israeli buyers often plan their own. For older buildings, the more valuable question is whether an urban-renewal or combination deal would return more than a straight sale.
Related guides
Talk to us about a sale 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.