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Selling Property in Israel: A Seller's Guide for Owners Abroad

Selling Property in Israel

Selling property in Israel from abroad is entirely manageable: pricing against public transaction data, a licensed broker with a signed agreement, a lawyer to run the contract and the tax filing, and a power of attorney so you never need to fly in. Sellers pay capital gains tax (mas shevach) of 25% on the real gain unless an exemption applies (Source: Israel Tax Authority, 2026). This guide covers the process, the taxes and how to get the best price.

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.

Why Israel

Israel packs about ten million people into a coastal strip, a hill country and a desert, and the shortage of buildable land near jobs is the single fact that explains the market: prices roughly doubled over the past decade and demand from young families, tech workers, immigrants and overseas buyers keeps pressure on supply. Most of the land is owned by the state and leased long-term through the Israel Land Authority, which is why most apartments are bought as long leases that behave exactly like freehold in practice.

Ben Gurion Airport sits 20 minutes from Tel Aviv, Israel Railways links the coast to Jerusalem in 30 minutes and the Tel Aviv light rail is expanding across Gush Dan. English is spoken everywhere in business, and every major city has an established English-speaking community.

What drives demand here:

Chronic housing shortage
Steady population growth
A technology economy that keeps attracting global capital
Immigration waves that lift demand in specific cities
Property rights that protect foreign owners exactly like locals

Who buys in Israel: Jewish families from North America, France and the UK buying a second home or preparing for Aliyah, tech founders relocating, and yield investors looking for hard-currency diversification.

Israel by area

[Tel Aviv and Gush Dan](/realestatepages/tel-aviv-apartments-prices-neighborhoods-and-opportunities)— the economic core; highest prices, deepest rental demand
[Jerusalem](/realestatepages/apartments-in-jerusalem-market-guide-for-overseas-buyers-2026)— the capital; strong overseas and religious-community demand
[The Sharon coast (Herzliya, Ra'anana, Netanya)](/realestatepages/herzliya-real-estate-complete-guide-for-international-investors)— villas, beaches and English-speaking communities
[Haifa and the north](/realestatepages/haifa-real-estate-complete-guide-for-international-investors)— value pricing, universities, the Galilee and Golan for land and lifestyle
[The south (Ashdod, Ashkelon, Beer Sheva, Eilat)](/realestatepages/beer-sheva-real-estate-market-guide-for-overseas-buyers-2026)— entry prices and higher yields

The selling process from abroad

Valuation against registered transactions in the building and street, not against asking prices.
Preparation: a current Tabu extract, building permits, the va'ad bayit account and any renewal (Tama 38 or pinui-binui) status, all of which buyers' lawyers will demand.
Marketing with a licensed broker under a signed agreement, in Hebrew and English, including to the overseas buyer pool that pays the highest prices in the central neighborhoods.
Negotiation and contract by your lawyer under a power of attorney, with the buyer's deposit held in trust.
Tax filing within 30 days of signing, clearance certificates and delivery against final payment.

Capital gains tax and other costs

Sellers pay capital gains tax (mas shevach) of 25% on the real gain, with an exemption available for a single residential home under conditions; foreign sellers must file, and buyers' lawyers withhold part of the price until the tax clearance arrives (Source: Israel Tax Authority, 2026). Sellers also pay their broker (up to 2% plus VAT), their lawyer (0.5%–1% plus VAT) and, where relevant, a betterment levy if building rights were added by a plan approved during their ownership.

Sell, or do a combination deal?

Owners of old buildings and houses on plots often have a better option than a straight sale: contributing the property to a renewal or combination project and receiving new apartments worth more than today's sale price. As a developer, Kobi Elkayam Real Estate can price both routes for you and structure the guarantees that protect owners in such deals.

Advantages

Property rights for foreigners identical to locals
Two decades of consistent appreciation
Deep rental demand in every major city
English widely spoken in business and law

Points to consider

Purchase tax of 8%–10% for non-residents (Source: Israel Tax Authority, 2026)
High entry prices in the center
Bureaucracy and Hebrew-language paperwork
Interest rates that make financing expensive

Our role in your purchase

Kobi Elkayam Real Estate Ltd is a Tel Aviv developer and licensed brokerage, part of the Elkayam Group, a family business now in its third generation. We sell and price properties for owners abroad, and offer combination-deal alternatives where the building rights justify it. The group's own projects include Kiryati 10 in Tel Aviv, the H/500 compound in Holon, Tel Nofim beside Sde Dov, Alhadif 44 in Tiberias and the Hasan Arafa railway compound. We work in Hebrew, English and French.

Do I have to be in Israel to sell my apartment?

No. A notarized power of attorney lets your Israeli lawyer sign the contract and complete the transfer; the Israeli consulate in your country can notarize it.

How much is capital gains tax on selling property in Israel?

Who pays the broker when I sell?

Each side normally pays its own broker up to 2% plus VAT; some sellers negotiate a single fee that the buyer's side shares. Nothing is owed without a signed brokerage agreement.

How long does a sale take?

Two to four months from listing to signing in a normal market for a well-priced apartment, plus 60–90 days from signing to final payment and delivery.

Is a combination deal better than selling?

For owners of houses on plots or apartments in buildings slated for renewal, often yes: you receive new apartments worth more than today's sale price and defer tax. We price both options for owners.

Thinking of selling?Personal consultation in English or French: +972-53-658-4252 · leave your details on this page and we will get back to you within one business day.