Buyer's Guide
Taxes & Costs When Buying in Israel
Buying property in Israel involves several taxes and fees beyond the purchase price. This overview gives you a clear picture of what to expect — so there are no surprises at closing.
We are real estate advisors, not accountants. The information below is a general orientation for buyers. For exact figures and tax planning, always work with a qualified Israeli attorney and, for US citizens, a CPA experienced in cross-border transactions.
Purchase Tax (Mas Rechisha)
Paid by the buyer to the Israel Tax Authority within 60 days of signing. Non-residents generally pay a flat rate on the full purchase price. Israeli residents may benefit from a lower rate on their first home.
Rate varies by residency status and property value. Your attorney will calculate the exact amount.
Attorney Fees
Israeli law requires both buyer and seller to engage independent legal counsel. Attorney fees are typically a percentage of the purchase price, plus VAT.
Budget approximately 0.5–1% of the purchase price for legal representation.
Real Estate Agent Commission
In Israel, both buyer and seller typically pay a commission to their respective agents. This is standard practice and is agreed upon in writing before the transaction.
Commission is subject to VAT at the current rate.
Land Registry & Administrative Fees
A fixed fee is paid to the Israel Land Registry (Tabu) to register the transfer of ownership. This is a straightforward administrative cost.
A relatively small fixed amount — your attorney handles the filing.
Ongoing Ownership Costs
Once you own the property, expect recurring costs including municipal tax (Arnona), building maintenance fees (Va'ad Bayit), and building insurance. If you rent the property, income tax applies to rental income.
Costs vary significantly by city, building type, and property size.
Capital Gains on Sale
When you eventually sell, capital gains tax may apply on the profit. Exemptions exist in certain circumstances — particularly for primary residences held for a qualifying period.
A qualified Israeli tax attorney will advise on your specific situation.
How We Help
While we don't provide tax or legal advice, our role is to make sure you understand the full picture before you commit. We walk every client through the expected cost structure for any property we present, connect you with trusted Israeli attorneys and — for American buyers — US-qualified CPAs who understand cross-border transactions.
Our goal is that you arrive at closing with no surprises — knowing exactly what you're paying, why, and to whom.
Want a cost estimate for a specific property?
Our advisors can walk you through the full cost breakdown before you make any commitment.
Disclaimer: The information on this page is provided for general orientation only and does not constitute legal, tax, or financial advice. Tax rates and regulations change frequently and vary based on individual circumstances. Bibian Group Israel is a real estate brokerage — we are not tax advisors, attorneys, or accountants. Always consult a qualified Israeli attorney and, where applicable, a US CPA before completing any transaction.