FAQ

I would like to purchase real estate in Israel for investment purposes. Does it require that I visit Israel?

No. You will need to visit the Israeli consulate to sign a power of attorney, or you can do that with a public notary where you live. You can then hire a lawyer in Israel to represent you and your interests and execute all of the investment actions for you and on your behalf.

What do I do if I need to sell property that I own in Israel under my maiden name?

That isn’t a problem at all, you only need to make sure that you have your original documents. You will need to provide a representative in Israel with proof of purchase, the agreement, a copy of an old ID with your maiden name, and any other document that is related to the purchase and the property. Everything must be original and you must have an affidavit that is signed by you and someone that isn’t a relative.

How can I get proof of ownership in Israel?

There is not one answer for this. It really depends on the government agency that is responsible for the property so you need to know where the property is registered.

Are there any taxes on real estate in Israel?

Taxes are somewhat complex when it comes to property in Israel. You will have to hire a local lawyer to walk you through everything you need to know about your personal case and what you have to pay when you purchase or sell property. The main taxes you need to know about are: Capital Gain Tax, which is paid to the government, and Improvement Tax, which is paid to the municipality. There is also something called Purchase Tax, which may be up to 5% of the property cost depending on how much that is. If you intend to buy luxury real estate in Israel, take into account the full 5% just in case.

Can foreign citizens buy real estate in Israel?

That depends on who owns the land. If the owner is a private citizen, they can sell to whomever they choose. Land that is handled by the Israel Land Administration, however, can only be purchased by someone who can legally become an Israeli civilian under the Law of Return.

Can I sell my property if it is registered at the Land Registration Office but I don’t have additional identification information?

You will have to be able to provide a passport number or ID number in order to sell your property in Israel. This can be done with affidavits, but you will also have to provide supporting documentation to prove that you are indeed the owner and the person listed on the property.

What documents do I need to transfer my property to someone else if it is registered in the Land Registration Office in Israel?

There are 4 types of documents that you will need to provide and you will have to have a lawyer to help you out with these:

1. The first is a Deed of Transaction, which will have to be signed by you and the other party and your Israeli lawyer will need to certify it.
2. The tax authority in Israel will need to provide you with documentation that states the property is debt-free.
3. The municipal authority will provide documentation that there are not outstanding payments, such as taxes, pertaining to the property.
4. If you have a mortgage on the property, you will need to discuss the transfer with the bank and they will provide a deed of cancellation.

If you aren’t selling the property and want to transfer it to a family member, like a child, it is still treated like a regular transaction. You will need to provide an affidavit that states that the property is a gift and is not being sold so that you can avoid the taxes that are usually paid to the municipality and government.

What do I do if I inherit property in Israel?

You will need to transfer the property under your name. In order to do that, you’ll need to a succession order or probate order from a government authority. You won’t need any tax or municipal certificates, but it can be a complicated process and it is highly recommended to hire a consultant to help you get through it smoothly.

What do I do if I want to sell luxury property in Israel?

First you will have to hire a real estate agent that you can trust who can take this process over for you. Give the real estate agent all of the information they need about the property, such as location, size, features, etc. and they will take care of it for you. You will also need a real estate lawyer to represent you in the sale and, if necessary, a banker for any financing you require.

How much does a real estate agent cost?

It is customary in Israel to charge 2% of the price of the property, not including the VAT which is currently 17% in Israel. Payment is done once the binding agreement is signed.

Why should I hire a real estate lawyer and how much does it cost?

In many cases a lawyer is mandatory for the purchase and sale process, especially if you’re dealing with a mortgage – banks generally require it. Even if it isn’t mandatory in your case, it is highly recommended because a lawyer will look out for your interests and will help you save time and money throughout the process. You will be more informed of the real estate laws and will be legally protected. A lawyer will also inform you of all of the taxes that you have to pay for the property, they will check the property to ensure it is ok for you to purchase, and will provide you with all of the legal documents that you need. The cost isn’t set it stone, though usually ranges between 0.5% and 2%.

Should I have the property checked by a professional before purchasing?

Yes, it is recommended to hire a licensed engineer to ensure that everything is up to code. If you intend on making changes, you may also want to hire an architect to understand what is and isn’t possible.

Where do we start?

We’ll start with a meeting, either face-to-face or by phone depending on your location, so that you can meet one of our agents and we can get a better understanding of your needs. Once we start working together, we will find a number of properties or buyers that match what you’re looking for, negotiate with the buyers or sellers on your behalf in order to get the best possible price, review properties and inspections, assist with the banking process, and more.

How do I know the price of my property before selling?

This is a very important step in the process and we highly recommend working with a professional that is experienced in the real estate market in Israel to provide you with a reliable price range.