bohabaita בוא הביתה
ENDE

PURCHASE COSTS IN ISRAEL

What does buying a home in Israel really cost?

Purchase tax, fees and mortgage, calculated in one minute.

· Reviewed by Ron Siedner

Purchase cost calculator

Work out purchase tax, fees and your mortgage for a home in Israel in about 1 minute, with tax rates as of 24 October 2026.

  • Purchase tax for your situation: living in Israel, abroad or as an oleh
  • Lawyer, broker, registration and other fees
  • Cash you need and, with a mortgage, loan and monthly payment
  • In shekels, euros or dollars, also as a PDF

Please note: this is a non-binding estimate, not tax, legal or financing advice. Your lawyer confirms the exact figures.

Purchase tax in Israel at a glance

Purchase tax (Mas Rechisha) in Israel runs from 0 % to 10 %: residents buying their only home pay nothing up to ₪1,978,745, foreign buyers and buyers of a further home pay 8 % up to ₪6,055,070 and 10 % above it (as of 24 October 2026).

The tax is progressive: each rate only applies to the part of the price that falls inside its band.

Rates for an only home (residents of Israel)

For buyers resident in Israel who own no other home in Israel. Bands valid from 16 January 2025 to 15 January 2028.

Part of the priceRate
up to ₪1,978,7450 %
₪1,978,745 to ₪2,347,0403.5 %
₪2,347,040 to ₪6,055,0705 %
₪6,055,070 to ₪20,183,5658 %
above ₪20,183,56510 %

Rates for a further home (also for buyers from abroad)

For every further home and for all buyers from abroad, also on their first home in Israel. The rates are set until 10 February 2027; what applies after that is still open.

Part of the priceRate
up to ₪6,055,0708 %
above ₪6,055,07010 %

Aliyah relief (Regulation 12A)

For contracts from 15 August 2024: your only home in Israel, bought from 1 year before to 7 years after your first arrival as an oleh, once in a lifetime. Bands valid until 15 January 2028.

Part of the priceRate
up to ₪1,978,7450 %
₪1,978,745 to ₪6,055,0700.5 %
₪6,055,070 to ₪20,183,5658 %
Above ₪20,183,565 there is no relief at all, not even in part.

Buying as a foreigner

Yes: foreigners can buy a home in Israel and, as buyers from abroad, pay 8 % purchase tax up to ₪6,055,070 and 10 % above it, set until 10 February 2027 (as of 24 October 2026).

This means your tax residence: where you live and work with your family. Your passport does not count. Israelis who live abroad also pay like foreigners when they buy.

If you become resident in Israel for the first time within 2 years of the purchase, or return after at least 10 years abroad, you get back the difference to the rates for an only home on application. If you return after a shorter time, you get nothing back.

Olim and aliyah relief

Olim pay no purchase tax up to ₪1,978,745 on their only home in Israel, and only 0.5 % above that up to ₪6,055,070 (Regulation 12A, as of 24 October 2026).

Olim pay much less purchase tax on their only home in Israel: 0 % up to ₪1,978,745, 0.5 % up to ₪6,055,070, 8 % up to ₪20,183,565. This applies from 1 year before to 7 years after your first arrival as an oleh, only once in a lifetime, and also if you rent the home out. Above a price of ₪20,183,565 the relief falls away completely. Israelis who return do not count as olim.

This means your first arrival as an oleh. The relief applies up to 7 years after it. If you came before 15.08.2024, there is also the old olim rule (Regulation 12). Your lawyer compares both.

The olim relief applies from 1 year before your first arrival. If you buy before you arrive, you first pay the normal rate (living abroad: the rate for foreigners) and get the difference back on application after your aliyah. Living abroad and arriving 1 to 2 years after the purchase, you get back the difference to the rates for an only home.

Other buying costs

Besides purchase tax, the largest buying costs are your lawyer at about 1 % plus 18 % VAT and, if you use one, a broker at about 2 % plus VAT (as of 24 October 2026).

CostTypical amountWhenWhat it is
Your lawyer1 % + VATEvery purchaseChecks the land registry, the contract and every payment, files the purchase tax return and registers you as the owner. Usually about 0.5–1 % plus VAT, often with a minimum fee. Your lawyer takes care of it.
Developer's lawyer0.5 % + VATNew build from a developerCharged to the buyer for new builds. By law at most 0.5 % or ₪ 5,915 plus VAT, whichever is lower, for prices up to ₪ 4,642,750. Above that the fee is not capped.
Broker2 % + VATEvery purchaseCommission only with a written brokerage order. Usually 2 % plus VAT, negotiable, no legal cap.
Appraiser (Shamai)₪2,500With a mortgageThe bank needs an appraisal before it lends. Bank appraisal about ₪ 350–950, a private one about ₪ 1,500–3,500.
Building inspection (Bedek Bayit)₪2,500 + VATEvery purchaseOptional. An engineer checks the home for defects before you sign or at handover. Example amount.
Registration (Tabu, caution note)₪500Every purchaseFees for the caution note (Heara'at Azhara) and the registration in the land registry, the Israel Land Authority or the housing company. Usually under ₪ 500 in total. Your lawyer files them.
Bank guarantee (Sale Law)usually in the priceNew build from a developerWhen you buy from a developer, each payment is secured, usually by a bank guarantee. Its cost is normally part of the price. Add an amount here if your contract says otherwise.
Mortgage advisor (Yoetz Mashkanta)₪6,000 + VATWith a mortgageOptional. Compares bank offers and puts the tranche mix together with you. Example amount.
Loan file fee₪360With a mortgageFee for opening the mortgage file, capped at ₪ 360.
Translations, certifications, apostilles₪1,500Buyers from abroadTypical for buyers from abroad, for example for a notarized power of attorney. Example amount.
Currency exchange and transfer1 %Buyers from abroadPercentage of the money you transfer to Israel (your own funds plus costs). Banks often add 1–1.5 % to the rate (spread), specialist providers are often cheaper.
Buffer2 %Every purchaseFor the unexpected: small repairs, extra fees, exchange rate moves.

For a new build from a developer the VAT (18 %) is included in the price; consumer protection law requires this. Purchase tax is calculated on this price. Off-plan, up to half of each instalment is linked to the construction cost index, the first 20 % are not; the chat does not include this.

Mortgage in Israel

An Israeli bank lends at most 75 % of the price, and at most 50 % to buyers from abroad (Bank of Israel, as of 23 October 2026).

Israeli banks lend at most 75 % for an only home, 70 % when you switch homes and 50 % for a further home. If you are not in the Israeli population register, you always get at most 50 %. The bank uses the lower value of price and appraisal.

Banks lend for up to 30 years, and at least a third of the loan has to be at a fixed rate under Bank of Israel rules.

FAQ

Seven short answers on the costs of buying a home in Israel, as of 24 October 2026.

Can foreigners buy property in Israel?

Yes. There is no citizenship or residency requirement. Buyers whose centre of life is abroad pay the purchase tax rates for a further home.

How much is purchase tax (Mas Rechisha) for foreign buyers?

Foreign buyers pay the rates for a further home: 8 % up to ₪6,055,070 and 10 % above it, set until 10 February 2027.

Do olim pay less purchase tax?

Yes. On their only home in Israel: 0 % up to ₪1,978,745, 0.5 % up to ₪6,055,070 and 8 % up to ₪20,183,565. It applies from 1 year before to 7 years after first arrival, once in a lifetime. Above ₪20,183,565 the relief falls away completely.

Can I get purchase tax back if I move to Israel later?

If you become resident for the first time within 2 years of the purchase, or return after at least 10 years abroad, you can claim back the difference to the only-home rates. You have 4 years to apply.

Is VAT included in the price of a new build?

Yes. A developer’s price includes 18 % VAT by law, and purchase tax is calculated on that price.

How much will an Israeli bank lend?

At most 75 % for an only home, 70 % when switching homes and 50 % for a further home. Buyers not in the Israeli population register get at most 50 %.

How accurate is the calculator?

It is a non-binding estimate, not tax or legal advice. Your lawyer confirms the figures for your purchase.

Sources

All figures on this page come from the calculator’s configuration, last checked on 24 October 2026; these are the sources behind it.

Talk to Ron

Ron Siedner guides buyers with more than 15 years of experience as a real estate advisor and usually replies within one business day.

Write to Ron if you want to go through your figures or see suitable homes in and around Tel Aviv, in German or English.

Go to the contact form