Property
Israel — Property: Foreign Ownership
The Israel Tax Authority taxes property purchases by foreign residents at full purchase tax, while new immigrants may qualify for a one-time reduction.
VerifiedGovernment / official sourceIsrael Tax Authority — Real estate taxationLast reviewed: 2026-10-23
Why this matters
Relocating individuals may be interested in purchasing property in Israel, but should be aware of the significant restrictions on foreign ownership.
Key facts
- A Tax Authority review says foreign resident investors pay full purchase tax.
- New immigrants who buy a residence or business property may qualify for a purchase tax discount for purchases from one year before first entry to seven years after.
- The Tax Authority offers a simulator and a partial exemption form (2973) for immigrants.
- Specific rates depend on buyer status and purchase date; use the official simulator.
Steps
- 1. Find a registered real estate agent or attorney — The agent or attorney will be able to guide the foreign buyer through the purchasing process, which can be complex and time-consuming.
- 2. Determine the foreign ownership percentage — The buyer must ensure that the property they wish to purchase meets the required foreign ownership percentage (40%).
- 3. Obtain necessary permits and approvals — The buyer will need to obtain any necessary permits and approvals from the relevant Israeli authorities.