Foreign citizens are generally allowed to buy apartments in Israel. There are no specific restrictions on foreigners buying property, and the process is largely the same as for Israeli citizens. However, there are a few things that foreign buyers should be aware of:
- Taxation: Foreign buyers are subject to higher purchase tax rates than Israeli citizens. The purchase tax is a one-time tax that is levied on the purchase of property. The tax rate ranges from 5% to 10%, depending on the purchase price of the property.
- Land ownership: A significant part of the land in Israel is owned by the state, and foreigners are mostly allowed to purchase property that is built on private land. In some state-owned properties, the purchase by a foreigner may require approval from the Israeli Land Authority. In the resent years there are many initiatives to transfer state-owned properties to be fully registered on the owners, thus eliminating the need for an approval.
- Mortgages: Foreign buyers may be able to obtain mortgages from Israeli banks, but the terms and conditions may be less favorable than those offered to Israeli citizens.
Despite these few considerations, foreign citizens are generally welcome to buy apartments in Israel. The real estate market is open to foreigners, and there are no specific restrictions on their ability to own property.
Aviv Gelman Law Office was established in 2017. Located in Haifa we handle real estate deals throughout Israel some of which are made as court-appointed trustee.