What's the purchase process to buy a property in Israel?

Authored by the expert who managed and guided the team behind the Israel Property Pack

Everything you need to know before buying real estate is included in our Israel Property Pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Israel. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Israeli real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tel Aviv, Jerusalem, and Haifa. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How do I find out if I'm eligible as a foreigner to buy property in Israel?

Foreign buyers can purchase property in Israel without any citizenship, residency, or religious requirements.

As of September 2025, Israel maintains an open property market for international investors. You don't need a visa or resident status to buy real estate. The only administrative requirement is obtaining an Israeli tax identification number, which your lawyer can help you secure during the transaction process.

This eligibility extends to all foreigners regardless of their country of origin. Whether you're from the United States, Europe, Asia, or anywhere else, Israeli property law treats all foreign buyers equally.

It's something we develop in our Israel property pack.

What kinds of properties can I legally purchase and what restrictions should I know about?

You can purchase residential properties, but the type of ownership varies significantly based on land classification.

Property Type	Ownership Structure	Foreign Buyer Access
Private Land Properties	Freehold ownership	Full ownership rights (7% of Israel)
State-Owned Land	Leasehold (49-99 years)	Long-term lease rights (93% of Israel)
Urban Apartments	Varies by location	Most commonly available
Agricultural Land	Restricted ownership	Very limited foreign access
Border/Security Areas	Government controlled	Prohibited for non-Israelis
Commercial Real Estate	Mixed ownership types	Available with restrictions
Vacation Properties	Private/leasehold mix	Widely available

How do I choose the right lawyer and why is it necessary before signing anything?

Choosing a specialized Israeli real estate lawyer is mandatory and should be your first step before any property negotiations.

Select a lawyer who specializes exclusively in Israeli real estate law with at least 5 years of focused experience in property transactions. Look for membership in the Israel Bar Association's real estate division, which indicates specialized credentials. Ideally, choose someone bilingual in your native language to ensure clear communication throughout the complex process.

Your lawyer serves multiple critical functions: conducting comprehensive due diligence to verify clear title, revealing any debts, liens, or building violations, and officially registering your ownership with the Land Registry (Tabu). They also negotiate contract terms that protect your interests and manage buyer funds through secure escrow arrangements.

Without proper legal representation, you risk incomplete ownership registration, undetected property debts, or signing contracts with unfavorable terms that could cost you significantly more than legal fees.

What documents do I need to provide to start the buying process in Israel?

You'll need comprehensive documentation prepared before beginning property negotiations or setting up an Israeli bank account.

1. Valid passport with at least 6 months remaining validity2. Israeli tax identification number (obtained through your lawyer)3. Proof of income for the past 2-3 years (employment letters, tax returns)4. Bank statements from your home country for the last 6 months5. Asset declarations showing source of funds for the purchase6. Notarized translations of all documents into Hebrew or English7. Tax certification from a local Israeli tax advisor

All foreign documents must be apostilled in your home country and then translated by a certified translator in Israel. This documentation process typically takes 2-4 weeks, so begin early in your property search.

How does the signing of the purchase agreement work and what protections should be included?

The purchase agreement in Israel is immediately legally binding once signed, unlike many countries that include standard conditional periods.

Your lawyer must insert specific protective clauses before you sign: structured payment schedules that protect your deposit, penalty clauses for seller delays, mandatory requirements for clearing all existing debts, and specific clauses ensuring municipality and utility settlements are resolved. The agreement should also specify exact property boundaries and include detailed property condition disclosures.

Upon signing, your lawyer registers a warning notice (Hearat Azhara) in the land registry system. This prevents the seller from selling the property to another buyer while your transaction proceeds. You'll also sign an irrevocable power of attorney authorizing your lawyer to complete the final registration process.

Never sign without your lawyer's thorough review, as Israeli purchase agreements have immediate legal consequences without typical "cooling off" periods found in other countries.

How and when do I open an Israeli bank account for the property transaction?

Open your Israeli bank account as soon as you identify a target property, ideally before contract signing.

Israeli banks require extensive source of funds documentation and proof of income before account opening. The bank will need your passport, Israeli tax ID, employment verification, bank statements from your home country, and detailed explanations of how you accumulated the purchase funds. This process typically takes 2-3 weeks.

The Israeli bank account is essential for deposit payments, international fund transfers, mortgage processing (if applicable), and ongoing property management expenses like municipal taxes and utilities.

Choose a major Israeli bank like Bank Hapoalim, Bank Leumi, or Israel Discount Bank, which have experience with international clients and can handle large foreign currency transfers efficiently.

What are the exact taxes and fees I'll need to pay, like purchase tax or lawyer fees?

Purchase tax represents your largest expense beyond the property price, calculated on a progressive scale for foreign buyers.

Cost Category	Rate/Amount	When Paid
Purchase Tax (first NIS 6,055,070)	8% of property value	Upon contract signing
Purchase Tax (above NIS 6,055,070)	10% of excess amount	Upon contract signing
Legal Fees	1-2% of purchase price + VAT	Throughout process
Registration Fees	0.5% of property value	At Tabu registration
Notary Fees	Fixed rates per document	During documentation
Currency Conversion	0.2-0.5% of transfer amount	During fund transfers
Real Estate Agent	2-3% of purchase price	Upon successful purchase

How does the land registration process at the Tabu actually work and how long does it take?

The Tabu (Land Registry) registration is the final step that makes your property ownership legally official in Israel.

Your lawyer submits all required documents to the appropriate regional Tabu office, including the signed purchase agreement, proof of tax payments, municipal clearances, and your power of attorney. The Tabu office verifies all documentation, confirms tax compliance, and checks for any outstanding liens or legal issues.

Registration typically takes anywhere from a few weeks to several months, depending on document completeness, property location, and land classification complexity. Properties on state-owned land generally take longer than private land properties due to additional government approvals required.

Only after Tabu registration is complete do you hold legal title to the property. Until then, the warning notice registered at contract signing protects your interests but doesn't constitute full ownership.

It's something we develop in our Israel property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Israel versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What should I watch out for when transferring funds from abroad to Israel for the purchase?

Israeli banks implement strict anti-money laundering procedures that can delay large international transfers without proper documentation.

Prepare notarized statements clearly documenting your funds' origin, including employment history, business ownership, property sales, or inheritance documentation. Large transfers often trigger additional scrutiny and compliance checks that can delay your purchase if not properly anticipated.

Use your lawyer's trust account for major transfers until legal due diligence is complete rather than transferring directly to sellers. This protects your funds if title issues emerge during the verification process.

Consider transferring funds in stages rather than one large amount to reduce banking delays and currency conversion risks. Work with banks experienced in Israeli real estate transactions to streamline the process.

How do I make sure there are no debts, liens, or building violations on the property before I buy?

Your lawyer conducts comprehensive legal due diligence by checking multiple official records and databases before finalizing the purchase.

1. Tabu (Land Registry) records for ownership verification and existing liens2. Municipal records for property taxes, building permits, and violations3. Utility company records for outstanding bills (water, electricity, gas)4. Condominium management records for maintenance fees and special assessments5. Court records for any legal proceedings involving the property

The purchase contract should include mandatory requirements that all debts, violations, and legal issues be resolved before closing. Your lawyer verifies these clearances are obtained and registered before completing the Tabu registration process.

Never waive these due diligence requirements to speed up the process, as undiscovered debts or violations become your responsibility after ownership transfer.

What are the most common mistakes foreigners make when buying property in Israel?

The most frequent and costly mistakes involve legal representation and property ownership structure misunderstandings.

1. Signing purchase agreements without specialized legal review or understanding leasehold versus freehold distinctions2. Underestimating total costs by focusing only on purchase tax while ignoring legal fees, registration costs, and ongoing expenses3. Inadequate document translation leading to misunderstood contract terms and legal obligations4. Transferring funds without proper anti-money laundering documentation, causing significant delays5. Poor communication with Israeli banks due to language barriers and unfamiliarity with local banking procedures

Many foreigners also fail to complete proper Tabu registration, assuming the purchase agreement constitutes full ownership. This leaves them without legal title and potential complications for future sales or inheritance.

It's something we develop in our Israel property pack.

Which steps in the process usually create the most confusion and how can I avoid them?

The greatest confusion typically occurs during purchase agreement negotiations, property legal status determination, and international fund transfers.

Purchase agreement terms require careful attention because Israeli contracts are immediately binding without conditional periods. Many foreigners struggle to understand the difference between leasehold and freehold properties, leading to unrealistic ownership expectations. Bank account setup and cross-border fund transfers create confusion due to extensive documentation requirements and anti-money laundering procedures.

Avoid confusion by hiring a specialized real estate lawyer before viewing properties, requesting detailed translations of all contracts and legal documents, and using secure escrow arrangements for all payments. Establish clear communication channels with your lawyer and bank early in the process.

Start documentation preparation and bank account setup immediately upon deciding to purchase in Israel, as these processes take longer than most foreigners anticipate.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Law Offices - Buying Property in Israel
2. Sands of Wealth - Israel Real Estate for Foreigners
3. Lend Abroad - Complete Guide for Foreigners
4. Semerenko Group - Ultimate Guide for Foreigners
5. Buy It in Israel - Real Estate Lawyer Guide
6. Davidson Real Estate - Finding the Right Lawyer
7. Aharoni Law - Israeli Real Estate Lawyer Services
8. Native Israel - Buying Property Guide
9. Immo Israel - Purchasing Process
10. Davidson Real Estate - Property Taxes for Foreign Buyers