How to Buy Real Estate in Israel: Our Step-by-Step Buying Process
The Israel real estate buying process in 12 steps, from your first call to the day you get the keys. Tap any stone to see what happens there.
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How do you buy real estate in Israel?
Buying real estate in Israel takes 12 steps, from your first call to the day you get the keys: define what you want, search the market, review a shortlist, see the property, make an offer, negotiate, hire an Israeli lawyer, get an engineer's inspection, sign the contract, pay purchase tax and register the property in your name, then take handover and set up the home. A resale apartment typically closes within one to three months of an agreed price. A new build takes longer, because you pay in stages while the building goes up. Foreigners can buy freely, and most of the Israel real estate process can be handled from abroad.
The Israel real estate buying process, step by step
This is the Israel real estate buying process we walk every client through. The steps are the same whether you're buying a vacation home in Jerusalem, a beachfront apartment in Netanya or a new build in Tel Aviv.
1. Discovery call
We start with a conversation about how you'll use the home (a lifestyle or vacation home, a rental, or a mix), where you want to be, your budget and your timeline. We include taxes and fees in the budget from the first call, so there are no surprises later.
2. The search
We search everywhere: online listings, offline sources, new construction sold directly by developers and our network of other agents, including off-market properties that are never advertised. You can see a sample of what's on the market now in our new construction projects by city.
3. Options and follow-up
We send you everything that realistically fits your criteria, with our honest view of each one, and schedule a follow-up call to go through them together.
4. Top 3 shortlist
On that call we narrow the list, ideally to your top three, and flag the trade-offs: price per square foot, building age, floor, outdoor space, noise and resale potential.
5. The showing
You can see the property on a live video tour, through a relative or friend in Israel, or on a trip you already have planned. Many overseas buyers decide during a single visit.
6. Making an offer
Once you've zeroed in on the right property, you make an offer. An offer is not a contract, but have your lawyer look at anything you sign, including a short memorandum of understanding.
7. Negotiation
Negotiation in Israel is usually informal, often over text message, until a price is agreed. We negotiate more than the price: the payment schedule, what's included, the handover date and any repairs.
8. Legal and finance
Once the price is agreed, you hire an Israeli real estate lawyer. We recommend trusted, English-speaking lawyers. The lawyer checks ownership in the Land Registry (Tabu), looks for liens or claims, reviews and negotiates the contract and handles the tax filings. If you need a mortgage, we bring in mortgage and finance experts. Banks usually lend non-residents a smaller share of the price than residents, so many overseas buyers pay mostly in cash. Our mortgage guide and calculator explains how Israeli mortgages work.
9. Engineer's assessment
Before you commit, an engineer inspects the property: structure, legal compliance and building permits, water and damp issues, electrical and plumbing. For new construction, we also review the specification and the developer's guarantees.
10. Signing day
You sign the purchase agreement, and your first payment is due only now, at signing, not before. If you're abroad, signing can be arranged remotely with a power of attorney or an Israeli notary or consulate.
11. Purchase tax and registration
Your lawyer reports the purchase to the Israel Tax Authority, and the purchase tax (mas rechisha) is paid within 60 days of signing. After the final payment, the property is registered in your name in the Land Registry.
12. Keys and beyond
We stay with you well past getting the keys: setting up utilities in your name, getting the internet connected, furnishing, and arranging property management or a rental if you want one.
Want us to run this process for you?
We handle the search, the negotiation and the coordination with your lawyer, engineer and bank, from first call to keys.
How long does the Israel real estate process take?
For a resale apartment, expect roughly one to three months from an agreed price to closing, depending on the lawyer's checks, any mortgage and the seller's own timeline. Deciding what to buy is the part that varies most. Some clients choose within a single trip, others take several months. New construction is slower: payments follow the construction schedule, and handover is usually two to four years after you sign.
What it costs: taxes and fees when you buy in Israel
Budget for these costs on top of the purchase price. Exact numbers depend on the price and your status, so your lawyer should confirm them for your purchase.
- Purchase tax (mas rechisha): a progressive tax paid within 60 days of signing. Foreign buyers, and anyone buying an additional home, pay a higher rate than an Israeli resident buying a first home, and the thresholds are updated each year. Use our purchase cost calculator for an estimate.
- Lawyer: typically about 0.5% to 1.5% of the price, plus VAT.
- Real estate agent: in Israel, commonly around 2% of the price, plus VAT, on a resale. For new construction bought directly from the developer, the agent is usually paid by the developer.
- Engineer's inspection, translation and notary fees: smaller, fixed amounts.
- Currency exchange and international wire fees: taxes and payments are made in shekels, so compare exchange rates before you transfer.
Buying new construction vs. a resale apartment
With a resale you see exactly what you're getting and can close in weeks. With new construction you usually buy from the developer before or during construction. Prices are often lowest at this stage, payments follow construction milestones and are protected by a bank guarantee under Israeli law, and you receive the keys when the building is completed. Browse current new construction projects in Israel, including Jerusalem, Tel Aviv, Netanya, Ra'anana and Bat Yam.
Can you buy Israel real estate from abroad?
Yes. Foreign nationals can buy privately owned property in Israel regardless of citizenship or residency. Showings can be virtual, signing can be done with a power of attorney, and your lawyer can handle the registration and tax filings. We'll tell you plainly which steps are worth doing in person, such as a final walk-through.
Mistakes to avoid when buying in Israel
- Signing anything before your own Israeli lawyer has read it.
- Skipping the engineer's inspection on a resale because the building looks fine.
- Budgeting for the price only, and not for purchase tax and fees.
- Falling for a rendering. For new construction, check the developer's track record and the guarantees.
- Choosing a neighborhood from a listing photo, not from a visit or a local's view.
Israel real estate buying process: frequently asked questions
How do I buy property in Israel as an American?
You follow the same process as an Israeli buyer: find a property, agree on a price, hire an Israeli real estate lawyer, get an inspection, sign the contract, pay purchase tax and register the property in your name. An agent who works for you can run the search and coordinate the lawyer, engineer and bank, and most steps can be done remotely.
Can foreigners buy real estate in Israel?
Yes. Foreigners can buy privately owned residential property in Israel regardless of citizenship or residency. There is no requirement to live in Israel.
How long does the Israel real estate buying process take?
A resale typically closes within one to three months of an agreed price. A new build takes longer, usually two to four years until handover, with payments made in stages as the building goes up.
Do I need a lawyer to buy property in Israel?
Yes, you should always have your own Israeli real estate lawyer. The lawyer checks ownership and liens in the Land Registry, reviews the contract, files the tax reports and registers the property in your name. We recommend trusted, English-speaking lawyers.
How much is purchase tax for foreign buyers in Israel?
Foreign buyers pay a higher purchase tax than an Israeli resident buying a first home, because the purchase is treated as an additional property. The rates are progressive and the thresholds are adjusted every year, so we calculate it for your exact price with your lawyer. The tax is paid within 60 days of signing.
Can I get a mortgage in Israel as a non-resident?
Often, yes, but on stricter terms than residents. Israeli banks commonly lend non-residents up to roughly half of the property's value, subject to approval. Many overseas buyers pay mostly in cash or finance part of the purchase outside Israel.
Do I need to be in Israel to buy a property?
No. You can view properties on video, work with your lawyer remotely and sign with a power of attorney. Many clients visit once, to see their shortlist in person, and handle the rest from abroad.
What are the closing costs when buying in Israel?
On top of the price, budget for purchase tax, lawyer fees (typically about 0.5% to 1.5% plus VAT), the agent's commission on a resale (commonly around 2% plus VAT), an engineer's inspection and currency exchange costs. Our purchase cost calculator gives an estimate.
This page is general information, not legal or tax advice. Always confirm taxes, fees and legal requirements with a licensed Israeli lawyer before you buy.
Ready to buy real estate in Israel?
Book a free discovery call. We'll talk through your goals, budget and timeline, and show you what's realistically available.
Or call +1 (332) 867-1967 · info@sandstoneisrael.com