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Transferring Money to Israel to Buy Property

Q: Can I pay the seller directly from my foreign account?

In practice the money is paid through an Israeli account, either yours or your lawyer's trust account, because the seller and the registering authorities expect shekel payments and documented receipts. Ask your lawyer which route the contract requires.

Q: Is there a limit on how much I can bring into Israel?

Israel does not generally restrict inbound capital, but large amounts are reviewed under anti-money-laundering rules and physical cash is subject to declaration at the border. Check current requirements with the Israel Tax Authority and your bank.

Q: What happens if the transfer is delayed and I miss a payment date?

The contract governs. Most contracts allow a short grace period and then charge interest; a long delay can be treated as breach. Tell your lawyer immediately so the seller can be informed.

International bank transfer being arranged for a property purchase in Israel

Moving money into Israel for a property purchase is straightforward once the receiving bank has approved you, but the transfer itself raises three practical questions: in which currency to send it, when to convert it into shekels, and what the bank will ask before it releases the funds to the seller. The receiving Israeli bank operates under the Prohibition on Money Laundering Law 5760-2000 and Bank of Israel rules, so every large incoming transfer is reviewed. Planning the transfer around the contract's payment dates, with a buffer for compliance questions, is the single most useful thing a foreign buyer can do.

Where the money should land

There are two common routes. The first is your own Israeli bank account, opened in advance and already approved for the purchase. The second is your Israeli lawyer's trust account, from which the lawyer pays the seller according to the contract. Lawyers in Israel are also subject to identification and record-keeping duties under the Prohibition on Money Laundering Law for real-estate transactions, so they will ask for similar documents. Many buyers use both: the trust account for purchase instalments and a personal account for mortgage repayments and running costs. Decide the route with your lawyer before the first payment is due, and give the sending bank the exact beneficiary details, including the IBAN and SWIFT code, in writing.

Which currency to send

The purchase contract is almost always priced in shekels, so the money must be in shekels by the time it is paid to the seller. You can convert abroad and send shekels, or send your home currency and convert in Israel. Each has trade-offs:

Sending foreign currency and converting in Israel gives you the Israeli bank's rate on the day, and you can hold the foreign currency in Israel until the instalment date if you want to wait.
Converting abroad through your own bank or a licensed currency broker may give a better or worse rate; compare the full cost, including fees and the spread, not only the headline rate.
Splitting the amount across several transfers over time averages the rate but multiplies fees and compliance questions.

Whatever you choose, ask both banks for the total cost in writing, and check that intermediary bank charges will not reduce the amount that arrives below what the contract requires.

Timing around the contract

Israeli purchase contracts set a payment schedule: a first instalment at signing, further instalments tied to dates or to construction milestones in a new-build, and a final payment at delivery against the keys and the registration documents. Under the Sale (Apartments) (Assurance of Investments) Law 5735-1974, payments to a developer for a new apartment must be secured, usually by a bank guarantee issued through a project account, so a developer will give you payment vouchers and instructions for that specific account. Late payment usually carries contractual interest and, after a grace period set in the contract, can be a breach. Work backwards from each due date:

Allow several business days for the international transfer to clear, more if a currency conversion or an intermediary bank is involved.
Allow extra days for the Israeli bank's compliance review of the incoming amount.
Avoid sending funds immediately before Israeli public holidays, when banks are closed.
Confirm receipt with your lawyer before the due date, and keep the transfer confirmation as evidence.

What the bank will ask about the transfer

Even with an approved account, a large incoming transfer typically prompts questions. Be ready to show:

The purchase contract, so the bank can match the amount to a real transaction.
The statement of the sending account showing the funds before transfer.
Evidence of where the funds originally came from, if not already on file: salary, sale of an asset, inheritance, gift or business proceeds.
Identification of any third party whose account the money passed through.
An explanation if the sender name differs from the account holder's name, for example a spouse or a family company.

Transfers that arrive from a sender the bank has not identified, or from a country it considers high risk, can be held until the file is complete. If funds are returned, the exchange-rate loss and fees are yours.

Keep your home-country side in order

Your home bank may also ask why you are sending a large sum abroad, and your home tax authority may expect the purchase to appear in your returns or in a foreign-asset declaration. Some countries have exchange controls or reporting thresholds for outbound transfers. Ask a local adviser before sending, and keep copies of everything, since the same documents will be needed again if you later sell and repatriate the proceeds.

Common mistakes

Sending the money to a lawyer's or developer's account without first verifying the account details by phone with a known contact, which exposes you to payment fraud.
Underestimating transfer time and paying an instalment late.
Ignoring intermediary fees so that the amount arriving is short of the contract figure.
Transferring from an account the Israeli bank has never seen, with no supporting documents.
Converting the entire purchase price months in advance with no plan, or converting at the last minute with no fallback.

FAQ

Can I pay the seller directly from my foreign account?