How Much Does It Cost to Buy Property in Israel?
The listing price is only part of what it costs to buy real estate in Israel. On top of the purchase price, buyers typically pay purchase tax (Mas Rechisha), lawyer fees, agent commission, and an engineer's inspection — together often adding around 12% to the price of the property. Enter a listing price below to see a full, itemized estimate of what buying property in Israel actually costs — shown in NIS, USD, and GBP, for a foreign, non-resident buyer.
Closing Cost Calculator
Enter the property's listing price to estimate your total real estate closing costs in Israel.
Figures assume a foreign buyer / non-resident purchasing an investment property in Israel.
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What's Included in the Cost of Buying Property in Israel?
A breakdown of every line item behind the real estate closing costs above.
Purchase Tax (Mas Rechisha)
Israel's property purchase tax is a graduated tax paid to the Israel Tax Authority within 60 days of signing. Foreign buyers and non-residents don't qualify for the 0% starting bracket available to Israeli residents buying their only home, and instead pay 8% up to roughly ₪6.06M and 10% above that, from the first shekel.
Lawyer Fees
Real estate lawyers in Israel typically charge around 1% of the purchase price plus 18% VAT. Your lawyer handles due diligence, the purchase agreement, registering the property, and filing the purchase tax declaration on your behalf.
Real Estate Agent Commission
Agent commission on Israeli real estate is commonly around 2% of the purchase price plus 18% VAT, paid by the buyer, the seller, or split between both depending on the agreement in place.
Engineer's Inspection
A professional engineer's inspection checks the property's structure, legal compliance, adherence to building code, and any water or moisture issues before you sign. This is a flat fee of ₪2,500, regardless of the purchase price.
Frequently Asked Questions
How much are closing costs when buying real estate in Israel?
For a foreign, non-resident buyer, total closing costs — purchase tax, lawyer fees, agent commission, and inspection — typically run from roughly 11% to 13% of the purchase price, mainly depending on which purchase tax bracket the property falls into.
Do foreigners pay a higher purchase tax to buy property in Israel?
Yes. Foreign buyers generally don't qualify for the 0% starting bracket available to Israeli residents buying their only home, and instead pay purchase tax starting at 8% of the price from the first shekel, rising to 10% above roughly ₪6.06M.
Is purchase tax the only tax when buying property in Israel?
Purchase tax (Mas Rechisha) is the main transaction tax paid by buyers. Sellers may separately owe capital gains tax (Mas Shevach), which does not affect the buyer's closing costs.
For illustrative purposes only. Not to be relied upon as financial, legal, or tax advice. All figures are estimates — actual costs depend on individual circumstances and should be confirmed with your lawyer and the Israel Tax Authority before signing.