How to move to Israel and buy a property?

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?

SANDSOFWEALTH

A team specialized in real estate investing in Middle East countries (Israel, UAE, Saudi Arabia, 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 SandsOfWealth, 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.

What's the general process to move to Israel and buy a property, step by step?

The process begins with determining your purpose for the move—whether for aliyah (Jewish immigration), investment, or personal use.

First, you'll need to obtain legal status if moving permanently by applying for Israeli citizenship or residency through aliyah eligibility, or securing appropriate visas for non-Jewish buyers. Next, engage a licensed real estate agent who specializes in working with foreign buyers and can navigate the local market effectively.

Hiring an Israeli lawyer is mandatory under Israeli law for all real estate transactions—they handle due diligence, contract negotiations, and property registration. You must obtain an Israeli tax ID number, which is required for all property purchases and banking activities in the country.

The property search phase involves thorough due diligence to confirm ownership status, zoning compliance, and any existing encumbrances on the property. Once you've identified a suitable property, your lawyer will negotiate terms and prepare the purchase agreement for signing.

If financing is needed, foreigners can apply for mortgages up to 50% of the property value from Israeli banks, though the approval process requires extensive documentation and typically takes 3-6 weeks.

Can foreigners legally buy property in Israel, and are there restrictions on what they can or can't buy?

Yes, foreigners have nearly identical property rights to Israeli citizens and can legally purchase most types of real estate without special authorization.

The main restrictions apply to agricultural land, which foreigners are generally prohibited from purchasing, and properties in restricted zones near military bases, borders, or sensitive installations that may require special approval from the Ministry of Finance. Most importantly, understand that the majority of land in Israel is state-owned and leased rather than sold outright.

Foreigners can own buildings on leased land, but not the land itself, with typical lease terms ranging from 49 to 99 years and usually renewable upon expiration. This leasehold system is standard throughout Israel and doesn't significantly impact your property rights or ability to sell, but it's crucial to understand the lease terms and renewal conditions.

There are no nationality-based restrictions for most residential and commercial properties, making Israel one of the more accessible Middle Eastern countries for foreign real estate investment.

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

Is it possible to purchase property in Israel without physically being in the country?

Yes, you can complete the entire property purchase process remotely through legal representation and digital tools.

The key requirement is appointing a lawyer or representative through a Power of Attorney to sign documents and handle transactions on your behalf. This Power of Attorney must be properly notarized either at an Israeli consulate in your home country or through a qualified notary whose signature can be authenticated by Israeli authorities.

Real estate agents now routinely provide comprehensive virtual tours, detailed video walkthroughs, and extensive photo documentation to help remote buyers make informed decisions. Many agents also offer live video calls during property visits to answer questions in real-time.

All necessary documents can be signed and authenticated remotely, though you'll need to coordinate with Israeli consular services or qualified notaries to ensure proper legal recognition of your signatures.

The remote purchase process adds approximately 2-3 weeks to the timeline due to document authentication and international coordination requirements.

What documents and paperwork are mandatory to buy property in Israel, and which are optional or recommended?

Several documents are absolutely mandatory for any property purchase in Israel.

Document Type	Status	Details
Passport	Mandatory	Valid international passport for identification
Israeli Tax ID	Mandatory	Required for all property transactions and banking
Proof of Funds	Mandatory	Bank statements or income verification
Purchase Agreement	Mandatory	Signed and notarized contract
Land Registry Extract (Tabu)	Mandatory	Official property ownership records
Power of Attorney	Mandatory if remote	Legal authorization for representation
Mortgage Documents	Mandatory if financing	Application, income statements, appraisal, insurance
Credit Report	Recommended	Helpful for mortgage applications
Property Inspection Report	Recommended	Professional assessment of property condition
Legal Zoning Opinion	Recommended	Confirms compliance with local regulations

Can you buy a property in Israel with cash, and are there any limits or reporting requirements?

While you can buy property with cash, Israeli law strictly limits cash transactions to prevent money laundering.

For business transactions, the maximum cash payment is 6,000 NIS (approximately $1,700), while private individuals can use up to 15,000 NIS (approximately $4,400) in cash for transactions between non-business entities. Any amount above these limits must be paid through traceable methods such as bank transfers, certified checks, or other documented payment systems.

All property purchases above the cash limits require full documentation and reporting to Israeli financial authorities, ensuring compliance with anti-money laundering regulations. Banks will require proof of the funds' source, especially for large international transfers.

Most property transactions in Israel are conducted through bank transfers due to these regulations, which actually provides better protection and documentation for both buyers and sellers.

Foreign buyers should coordinate with their home country banks regarding international transfer limits and reporting requirements for large property purchases.

Do banks in Israel offer mortgages to foreigners, and if so, what are the typical rates, conditions, and tips to qualify?

Israeli banks do offer mortgages to foreigners, though with more restrictive terms than those available to Israeli residents.

As of June 2025, foreign buyers can typically obtain mortgages up to 50% of the property value, with some banks offering up to 60% if additional collateral or assets are provided. Current interest rates for shekel-denominated mortgages range from 4.8% to 7.5%, depending on the bank, loan terms, and borrower qualifications.

Banks require that monthly mortgage payments not exceed 30% of your documented income, and extensive financial documentation is mandatory including income statements, bank statements, tax returns, and credit reports from your home country. Life insurance covering the mortgage amount is typically required, and property insurance is mandatory.

To improve your chances of approval, work with a mortgage broker who specializes in foreign buyers, provide comprehensive financial documentation translated into Hebrew, and consider the currency risk if taking a foreign currency mortgage versus shekel-denominated loans.

The mortgage approval process typically takes 3-6 weeks and requires a professional property appraisal conducted by a bank-approved assessor.

What are all the taxes, fees, and hidden costs involved in the purchase process—including a full breakdown?

Property purchase costs in Israel extend well beyond the purchase price, typically adding 7-15% to your total investment.

Cost Type	Amount	Details
Purchase Tax (Mas Rechisha)	5-10%	For foreigners, based on property value
VAT	18%	On new apartments, usually built into price
Legal Fees	0.5-1.5% + VAT	Mandatory legal representation costs
Agent Fees	1-2%	Sometimes paid by seller
Registration Fees	Variable	Land Registry (Tabu) charges
Municipal Taxes (Arnona)	Annual	Ongoing property tax obligation
Development Levies	Tens to hundreds of thousands NIS	For new developments
Betterment Tax	Up to 50%	Of increased land value if zoning changes
Utility Hookup	Tens of thousands NIS	For new properties
Property Insurance	Annual premium	Required for mortgages

How long does the whole property purchase process usually take from start to finish?

The complete property purchase process in Israel typically takes 2-4 months from initial property search to final registration.

Property search and selection usually require 1-3 months, depending on market conditions, your specific requirements, and availability in your preferred areas. Due diligence, contract negotiation, and legal review typically take 1-2 weeks once you've identified a suitable property.

Mortgage approval, if needed, adds 3-6 weeks to the timeline and often runs parallel to other processes to minimize delays. Tax payment and final property registration usually require 1-2 weeks after contract signing and can be expedited if necessary.

Complex transactions involving new developments, multiple parties, or unusual property types may extend the timeline to 6 months or more, while straightforward cash purchases of existing properties can sometimes be completed in as little as 6-8 weeks.

Remote purchases add approximately 2-3 weeks due to international document authentication and coordination requirements.

Are real estate agents in Israel generally reliable, and what should you watch out for when dealing with them?

Israeli real estate agents are generally professional, but due diligence is essential when selecting representation.

Always verify that your agent holds a valid license called "Rishion Tivuch" and check their registration number with the Israeli authorities—unlicensed agents operate illegally and cannot provide proper protection for your transaction. Look for agents with specific experience working with foreign buyers, as they understand the unique requirements and challenges international clients face.

Request references from previous foreign clients and verify their track record with successful international transactions. Be cautious of agents who pressure you into quick decisions, refuse to provide proper documentation, or seem unfamiliar with foreign buyer requirements and tax obligations.

Professional agents should provide comprehensive market analysis, assist with legal and financial professional referrals, and maintain clear communication throughout the process. They should also be transparent about their commission structure and any potential conflicts of interest.

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.

Will the legal system protect foreign buyers, and what legal precautions should you take?

Israel's legal system is robust and generally provides strong protection for foreign property buyers.

The country operates under a well-established legal framework based on both civil and common law principles, with clear property rights protections and enforcement mechanisms. Foreign buyers have access to the same legal remedies as Israeli citizens, including court protection and dispute resolution procedures.

Essential legal precautions include hiring a qualified Israeli real estate lawyer who is licensed to practice in Israel and experienced with international transactions. Conduct thorough due diligence on every property, including verification of ownership, zoning compliance, outstanding debts, and any encumbrances or liens.

Ensure all contracts are clear, comprehensive, and enforceable under Israeli law, with specific attention to payment schedules, delivery dates, and penalty clauses. For remote purchases, a properly executed Power of Attorney is essential and must be authenticated according to Israeli legal requirements.

Consider title insurance where available and maintain comprehensive documentation of all transactions, payments, and communications throughout the purchase process.

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

The most significant mistake foreign buyers make is misunderstanding the leasehold system that governs most Israeli land.

1. **Not Understanding Leasehold Agreements:** Most land in Israel is state-owned and leased, not sold outright—buyers own the building but lease the land, typically for 49-99 years with renewal options2. **Underestimating Tax Obligations:** Foreign buyers often overlook purchase tax (5-10%), ongoing municipal taxes (Arnona), and potential capital gains tax on future sales3. **Skipping Due Diligence:** Failing to verify property status, zoning compliance, outstanding debts, or building permits can lead to serious legal and financial problems4. **Overlooking Zoning Regulations:** Not confirming that your intended use complies with local zoning laws, especially for commercial or mixed-use properties5. **Attempting Self-Representation:** Trying to navigate the complex legal and bureaucratic requirements without proper professional help often results in costly mistakes and delays

Additional common errors include accepting verbal agreements without written documentation, failing to budget for all closing costs and ongoing expenses, and not understanding the implications of different mortgage currency options.

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

Where do foreigners most often buy property in Israel, and why are those areas popular?

Foreign buyers concentrate their investments in several key areas that offer the best combination of lifestyle, appreciation potential, and international appeal.

Tel Aviv remains the top destination for international buyers due to its vibrant urban lifestyle, strong property appreciation rates, proximity to beaches and cultural attractions, and status as Israel's financial center. The city consistently shows robust rental yields and capital growth, making it attractive for both investors and residents.

Jerusalem attracts buyers seeking historical, cultural, and religious significance, with diverse neighborhoods offering everything from luxury modern developments to restored historic properties. Netanya has emerged as a premium destination for beachfront luxury properties, with modern developments and high demand from international buyers seeking coastal living.

Be'er Sheva offers more affordable entry points with strong rental yields, driven by its growing student population from Ben-Gurion University and expanding tech sector. Haifa provides scenic living with lower prices than Tel Aviv or Jerusalem, diverse cultural atmosphere, and good transportation connections.

Netanya's southern neighborhoods, central Tel Aviv districts, and specific Jerusalem areas like German Colony or Talbiya are particularly popular for their combination of lifestyle amenities, investment potential, and established international communities.

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. ImmoIsrael - Real Estate Agent Israel
2. NBN - 10 Step Guide to Purchasing an Apartment in Israel
3. SandsOfWealth - Israel Real Estate for Foreigners
4. Semerenko Group - Registering Real Estate in Israel
5. Ynet News - Real Estate Purchase Guide
6. Global Property Guide - Israel Buying Guide
7. Welcome Israel - Mortgage in Israel
8. Buy It In Israel - Closing Costs
9. Jerusalem Realty - Can Foreigners Buy Property
10. Daniels Assets - Foreigner Apartment Purchase