A Complete Guide to Buying Property in Israel as a Foreigner
If you’ve ever dreamed of owning a home in the Holy Land, you’re not alone. Israel’s unique mix of vibrant culture, rich history, and breathtaking landscapes makes it a prime destination for foreign property buyers. Whether you’re seeking a vacation home, a real estate investment, or planning a future move, buying property in Israel as a foreigneris entirely possible—with the right guidance.
In this guide, we’ll walk you through everything you need to know before purchasing property in Israel and explain how Bayit in Israel offers an A-to-Z service to make your buying journey smooth and stress-free.
Why Foreigners Are Buying Property in Israel
Israel attracts buyers from all over the world—especially from North America, Europe, and Australia—due to:
- Strong real estate market: Despite global trends, Israeli property prices have shown consistent growth.
- Emotional and religious connection: Many foreign buyers have deep ties to Israel and want a personal foothold in the country.
- Investment opportunity: High rental demand, especially in cities like Tel Aviv, Jerusalem, and Netanya.
- Future aliyah plans: Many Jewish families abroad are preparing for a potential move by investing in property now.
Can Foreigners Legally Buy Property in Israel?
Yes. There are no legal restrictions preventing foreigners from purchasing property in Israel. You don’t need to be a citizen or have a visa to buy a home.
However, it’s important to understand a few key points:
- Most land in Israel is owned by the Israel Land Authority (ILA) and leased on long-term contracts (usually 49 or 98 years). This is common and secure.
- Private land is also available and is typically easier to transfer.
- You’ll need an Israeli tax ID number, open a local bank account, and may need legal representation in Israel.
That’s where having a local partner like Bayit in Israel makes all the difference.
What’s the Buying Process Like?
Here’s a simplified overview of how the property-buying process works in Israel:
1. Define Your Goals
What are you looking for—a holiday home? A rental property? A retirement plan? Knowing this will help determine the right location, type of property, and budget.
2. Secure Financing
If you’re not paying in full, you’ll need to explore financing options. Foreigners can often get a mortgage from Israeli banks, usually up to 50% of the property’s value.
3. Find the Right Property
Popular locations for foreign buyers include:
- Jerusalem – Historic and spiritual hub.
- Tel Aviv – Modern, cosmopolitan, and vibrant.
- Netanya and Herzliya – Beachfront cities with strong Anglo communities.
- Tzfat, Haifa, and Ashkelon – More affordable with great lifestyle value.
Bayit in Israel offers personalized searches based on your criteria, ensuring you only see properties that truly fit your needs.
4. Legal & Financial Due Diligence
Before signing anything, a lawyer should review:
- Property registration (Tabu)
- Zoning and permits
- Taxes and seller obligations
5. Sign a Purchase Agreement
Once the due diligence is complete, a contract is signed, and a deposit (usually 10%) is paid.
6. Registration and Payment
The remaining amount is paid according to the agreed schedule, and the property is registered in your name.
Costs to Expect When Buying Property in Israel
In addition to the property price, here are some typical costs:
- Purchase Tax (Mas Rechisha): 5–10% for foreign buyers, depending on the property value.
- Legal fees: ~1% + VAT.
- Agent commission: ~2% + VAT.
- Bank fees/mortgage handling: 0.5–1%.
- Currency exchange & transfer fees
Bayit in Israel helps you anticipate and manage these costs upfront, so there are no surprises.
Why Use an A-to-Z Service Like Bayit in Israel?
Buying a home overseas can be overwhelming, especially if you don’t speak Hebrew or know the local market. That’s why Bayit in Israel was created—to serve as a trusted local partner for foreign buyers.
Here’s what our A-to-Z service includes:
- Property search & tours (in person or virtual)
- Legal support & contract negotiation
- Mortgage guidance and bank introductions
- Tax consultation
- Renovation and design services
- Property management for rentals
- Aliyah and relocation support
With our team on the ground, you won’t have to navigate the process alone. We advocate for your interests, connect you with trusted professionals, and ensure the entire process runs smoothly.
Common Mistakes Foreign Buyers Make (And How to Avoid Them)
- Skipping legal review: Always have a local lawyer check the paperwork.
- Ignoring property taxes: Understand how ongoing municipal taxes (arnona) affect your budget.
- Underestimating renovation needs: Some listings can be misleading—get an inspection or expert opinion.
- Trying to manage it all remotely: Having someone local makes a huge difference.
Ready to Find Your Home in Israel?
Buying property in Israel as a foreigner is absolutely possible—and can be incredibly rewarding. With expert guidance and a personalized approach, the process doesn’t have to be stressful.
At Bayit in Israel, we help you turn your dream into reality—from your first question to your first night in your new home. Contact us today to start your journey!
