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Tel Aviv's seafront towers, the villas of Herzliya Pituach and the golf-and-sea estates of Caesarea: how foreigners buy prime property in Israel, the purchase tax and the lending limits.
At a glance
| Can foreigners buy? | Yes, apartments and houses. About 93% of land is state land run by the Israel Land Authority (ILA), usually held on long leases; a foreigner buying one home on ILA land needs ILA approval, which is routine. |
|---|---|
| Purchase tax (non-residents) | 8% up to NIS 6,055,070 and 10% above, with no 0% band. These rates are a temporary order that was due to end on 31 December 2026; check the rate on the day you sign. |
| New builds | 18% VAT, included in the developer's price. Resales carry no VAT. |
| Mortgages | Banks may lend non-citizens no more than 50% of the value (Bank of Israel Directive 329). |
| Residency through property | No. Israel has no golden visa, and owning a home gives no right of residence. |
| Currency | New Israeli shekel (NIS). |
| US tax treaty | Yes. |
Why buy here
Israel's prime market runs along the coast. Tel Aviv has the country's record prices, in seafront towers on the promenade, the Old North, Neve Tzedek and the new Sde Dov quarter; Herzliya Pituach to the north has seafront villas and apartments; and Caesarea, beside its Roman harbour and golf course, is the country's most exclusive villa estate.
Buyers here are often families with ties to the country, and many buy from abroad through a power of attorney. There is no residence through property, and the security situation since October 2023 has slowed the top of the market, so buyers should ask their lawyer and insurer about war-damage cover.
Planning a first visit? See our guide to Tel Aviv, Jerusalem and the Judean Hills.
Who can buy
Tenure. Private freehold land is a small share of the country. Most homes stand on Israel Land Authority land and are held as capitalised long leases, with the lease fee paid up front; in urban buildings these leases can often be converted to ownership.
The foreign-buyer rule. Under the Israel Lands Law (Amendment No. 3, 2011) and ILA Procedure 05.02, transferring ownership, or a lease of more than five years, in ILA land to a "foreigner" needs approval. The ILA may approve one residential unit for an individual who holds no other home in Israel. Anything more goes to the Israel Lands Council. Transfers made without approval are void. Private land is not covered by this rule.
Who counts as a foreigner. Anyone who is not an Israeli citizen or resident and is not entitled to immigrate under the Law of Return, and companies they control. Americans are treated like other foreigners; a US citizen eligible under the Law of Return falls outside the definition.
Company ownership is possible, but a company controlled by foreigners is itself a "foreigner", and company purchases of homes pay the 8% and 10% rates.
Best areas to buy
"Derived" figures were calculated from a reported price and size. All are indicative.
Indicative prime priceNIS 130,000–210,000 per m²
Towers on the promenade and around the port. The NIS 210,000 record was set at the SIX-8 tower.
Globes, December 2025; Times of Israel, 2022.
The Tel Aviv & Herzliya Pituach Territory →Indicative prime priceAbout NIS 85,000 per m² built
A leafy villa neighbourhood in north Tel Aviv.
Derived from a reported NIS 62.1 million sale, Globes, September 2025.
The Tel Aviv & Herzliya Pituach Territory →
Indicative prime priceAbout NIS 100,000 per m² (apartments)
Seafront villas, apartments and the marina north of Tel Aviv.
Derived from reported sales, Globes, December 2025.
The Tel Aviv & Herzliya Pituach Territory →
Indicative prime priceAbout NIS 46,000 per m² built
Villa estates between the sea and the golf course, beside the Roman harbour.
Derived from a reported NIS 78 million sale, Globes, September 2025.
The Caesarea Territory →Also bought by international buyers: Jerusalem's Talbiyeh, Rehavia and King David quarter, where new homes have sold at NIS 70,000–125,000 per m² (Globes, September 2025).
Developers
Projects selling or taking enquiries on 31 October 2026.
55 serviced residences beside a 140-key hotel, listed as opening in 2027. Visit website (opens the official site) ↗︎
A 34-storey tower and boutique buildings, 406 homes in all, by Avisror Moshe & Sons in the new Sde Dov quarter. Visit website (opens the official site) ↗︎
A major residential developer whose projects include Herzliya Hills. Visit website (opens the official site) ↗︎
How to buy
A passport is enough for most steps. Open an Israeli bank account for staged payments and any mortgage.
Israel has no mandatory notary. Your lawyer handles due diligence, drafts the contract and registers the purchase. A notarised, apostilled power of attorney allows you to sign from abroad.
Land Registry extract or ILA rights confirmation, planning status and building permits, any betterment-levy exposure, municipal debts, mortgages and liens, and, for off-plan homes, the developer's bank guarantee.
The binding contract is usually signed directly, with staged payments. A caution note is registered at once to protect the buyer.
File the return within 30 days of signing and pay within 60 days.
Obtain the tax and municipal clearances and, on ILA land, ILA consent. Register at the Land Registry (Tabu), or in the ILA or housing-company books.
Signing to handover typically takes one to three months on a resale. Final registration can take months more.
Lawyers and lenders who serve foreign buyers can be listed on this page. To advertise, write to [email protected].
Taxes and fees
| Item | Rate or cost | Paid by |
|---|---|---|
| Purchase tax (non-residents) | 8% up to NIS 6,055,070; 10% above. A temporary order that was due to end on 31 December 2026; check the rate on the day | Buyer |
| VAT (new build) | 18%, included in the price | Buyer |
| Lawyer | About 0.5–1.5% plus VAT | Buyer |
| Agent | About 2% plus VAT, customarily from each side | Buyer and seller |
| Annual municipal tax (arnona) | By floor area and zone | Owner |
| Capital gains (mas shevach) | 25% of the real, inflation-adjusted gain, plus surtax on large capital income | Seller |
| Betterment levy | 50% of the increase in value caused by a new zoning plan | Usually the seller |
Israel has no wealth tax. Budget roughly 10–13% of the price in all for a non-resident purchase (estimate).
Residency
No golden visa. Israel has never offered residence for property, and owning a home gives no visa rights.
Main routes: immigration (aliyah) under the Law of Return, for people of Jewish ancestry and their spouses, gives citizenship and new-immigrant tax benefits; otherwise work visas or family reunification. The Law of Return is an immigration right, not a property route.
Mortgages: under Bank of Israel Directive 329, foreign buyers fall in the investment-home category, with a loan-to-value cap of 50%.
For Americans: the US–Israel income tax treaty applies, and US citizens remain taxable in the US on worldwide income.
Founding Partners
Founding Partners
Three places for Founding Partner Agencies and three for Developers in each Territory. Places are open.
Territories in Israel: Tel Aviv & Herzliya Pituach, Caesarea.
Questions
Yes. Most homes stand on Israel Land Authority land, and a foreign individual buying one home needs ILA approval, which is routine. Private land is not covered by the rule.
8% up to NIS 6,055,070 and 10% above, with no 0% band. These rates are a temporary order that was due to end on 31 December 2026, so check the rate on the day you sign.
Yes, but Israeli banks may lend non-citizens no more than 50% of the property's value.
No. Israel has no golden visa, and owning a home gives no right of residence.
Where to stay while you look
Selected by TheMediterranean.com · Old Jaffa, Tel Aviv
View the ResortChecked and sourced
Checked 31 October 2026. Rules and rates change; confirm with a qualified lawyer and tax adviser before you buy. TheMediterranean.com is not a real estate broker, agent or finder, and nothing here is legal, tax or immigration advice.
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