Israel Real Estate Guide

Selling Property in Israel

A complete guide to the selling process in Israel — from pricing and marketing to taxes, legal requirements, and timeline.

Selling property in Israel as a foreign national involves several steps that differ from the buying process. The most important consideration is capital gains tax (mas shevach), which applies to the appreciation in value since purchase. Understanding your tax position before listing is essential — the right planning can significantly reduce your liability.

The Process

How the Sale Process Works

Appoint an attorney

You must appoint an Israeli attorney (who must be independent of the buyer's attorney) to handle the legal aspects of the sale. Your attorney will review the title, prepare the sale contract, and manage the transfer of funds.

Obtain a tax assessment

Before listing, obtain a preliminary capital gains tax assessment from a licensed Israeli tax advisor. This will determine your tax liability and may affect your pricing strategy and timing.

Appoint a broker

A licensed Israeli real estate broker will market the property, conduct viewings, and negotiate on your behalf. Broker commission is typically 2% + VAT of the sale price, paid by the seller.

Accept an offer and sign a contract

Once an offer is accepted, your attorney will negotiate and draft the sale contract (hozeh mecher). The buyer typically pays a 10% deposit on signing, which is held in escrow.

Completion and tax payment

Completion typically occurs 60–90 days after contract signing. Capital gains tax must be paid within 30 days of completion. Your attorney will manage the title transfer at the Israel Land Authority.

Capital Gains Tax

Mas Shevach — What Sellers Pay

Capital gains tax (mas shevach) is levied on the real (inflation-adjusted) gain from the sale of Israeli property. The standard rate for non-residents is 25% of the real gain. However, several exemptions and reductions may apply depending on when the property was purchased, how it was used, and the seller's tax residency status.

Scenario	Tax Rate	Notes
Non-resident seller — standard rate	25% of real (inflation-adjusted) gain	Applies to most foreign sellers
Property purchased before 2014	Linear reduction applies	Pre-2014 portion taxed at lower historical rates
Primary residence exemption	Exempt (conditions apply)	Seller must have lived in property for 18+ months; limited to once every 4 years
Depreciation recapture	Added to taxable gain	If property was rented, claimed depreciation is added back to the gain

Source: Israel Tax Authority. Tax rules are subject to change. Consult a licensed Israeli tax advisor for advice specific to your situation.

Selling Costs

What to Budget For

Broker commission2% + VAT (17%) = ~2.34% of sale price

Attorney fees0.5–1% of sale price + VAT

Capital gains tax (mas shevach)25% of real gain (varies — see above)

Betterment levy (hetel hashbacha)50% of planning gain, if applicable

Mortgage redemption penaltyVaries by bank and loan terms

Building inspection / survey₪1,500–4,000 (optional but recommended)

Timeline

Typical Sale Timeline

Preparation

2–4 weeks

Appoint attorney and broker, obtain tax assessment, prepare property for market

Marketing

4–12 weeks

Active marketing, viewings, and offer negotiation

Under contract

1–2 weeks

Contract negotiation and signing; 10% deposit received

Completion

60–90 days

Balance of funds transferred; title transferred; tax paid

Post-completion

30 days

Capital gains tax payment; Land Authority registration

Thinking of Selling?

Our advisors can provide a current market valuation and guide you through the entire process. Schedule a no-obligation consultation.

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