Foreign buyers guide
Buying Property in Israel as a Foreigner
Israel welcomes foreign buyers with no ownership restrictions. Here's exactly what changes — and what stays the same — when you buy from abroad.
Israel is one of the most open property markets in the world
Unlike many countries, Israel imposes no restrictions on foreign nationals buying real estate. A US citizen, UK national, French resident, or buyer from any other country can purchase freehold property in Israel in their own name. The process is transparent, the title system is reliable, and the legal protections are strong. The key differences for foreign buyers are the purchase tax rate, the mortgage LTV cap, and the practical logistics of buying from abroad.
What changes for foreign buyers
Foreign buyer vs. Israeli resident: the key differences
| Topic | Foreign buyer | Israeli resident |
|---|---|---|
| Purchase tax | 8% flat on full purchase price | 0% up to ₪1.97M, then progressive (first home) |
| Mortgage LTV | Up to 50% of property value | Up to 75% (first home) |
| Ownership rights | Full freehold — identical to residents | Full freehold |
| Rental income tax | 15% flat or marginal rate | 15% flat or marginal rate |
| Capital gains tax | 25% (exemptions may apply) | 25% (primary residence exemption available) |
| Physical presence required | No — power of attorney accepted | No |
Practical steps
How to buy from abroad
Appoint an Israeli attorney
Your attorney is your most important local partner. They conduct due diligence, negotiate the purchase agreement, handle tax filings, and register the title. You can grant them power of attorney to act on your behalf without you needing to travel.
Open an Israeli bank account (optional)
Not strictly required, but useful for ongoing costs like arnona (municipal tax), building maintenance fees, and rental income. Several Israeli banks have international branches or can open accounts remotely.
Currency transfer
Most foreign buyers transfer funds in USD or EUR. Your attorney will advise on the timing of the conversion. Using a specialist FX provider rather than a bank can save 1–2% on large transfers.
Tax reporting in your home country
Owning property in Israel may create reporting obligations in your home country. US citizens must report foreign real estate on FBAR and FATCA forms. Consult a cross-border tax advisor before completing.
Property management
If you're buying to rent, appoint a local property manager. They handle tenant relations, maintenance, and rent collection. Fees are typically 8–12% of monthly rent.
Foreign buyer FAQs
Questions foreign buyers ask most
Is there any country whose citizens cannot buy in Israel?
In practice, citizens of any country can buy. There are no nationality-based restrictions in Israeli property law. Even buyers from countries without diplomatic relations with Israel have successfully purchased.
Can I buy through a foreign company?
Yes. Many buyers purchase through a foreign holding company for estate planning or tax efficiency. Your attorney and a cross-border tax advisor can structure this correctly.
What happens if I want to sell later?
You can sell at any time. Capital gains are taxed at 25% for non-residents. If you've held the property for many years, a linear exemption may reduce the taxable gain. Your attorney handles the sale process.
Can I rent out my property?
Yes. There are no restrictions on renting to tenants. Rental income is taxed at 15% flat or at your marginal rate — whichever you elect. Short-term rentals (Airbnb-style) are permitted in most areas.
Do I need an Israeli bank account?
Not strictly, but it simplifies ongoing management. Funds for the purchase can be transferred directly to your attorney's client account. Ongoing costs can be paid by international transfer.
Buying from abroad? We make it seamless.
Bibian Group is licensed in both Israel and the United States. We guide international buyers through every step — in English, Hebrew, or French.
Talk to our team