Can a foreign company buy Israeli property?

The legal basis for foreign corporate ownership lies in the Land Law 5729-1969, which defines an "owner" without any restriction on the owner's nationality or place of incorporation. An overseas company purchasing Israeli real estate must produce a certified and apostilled copy of its certificate of incorporation, memorandum and articles of association, and a current certificate of good standing from its country of registration. A director's resolution authorizing the specific purchase — identifying the property and the authorized signatory — is also required. All foreign-language documents submitted to the Land Registry or the Israel Tax Authority must be accompanied by certified Hebrew translations prepared by a court-sworn translator (meturgam mushba). The conveyancing attorney typically handles the document assembly and can guide the company's representatives on the specific format required for the country of incorporation.

Foreign investors frequently choose to hold Israeli property through a foreign holding company for estate planning, liability, or tax efficiency reasons. However, buying through a company rather than individually does carry tax consequences worth understanding before committing to a structure. Rental income earned by a foreign company from Israeli property is taxed in Israel at 23% corporate rate, whereas an individual non-resident can access the flat 10% track under the Income Tax Ordinance. On sale, the company pays 25% betterment tax on the real gain with no single-apartment exemption. A foreign company's Israeli property can be transferred to another owner only with full Land Registry compliance, meaning corporate changes in the parent structure that indirectly affect ownership may not require reregistration at the Tabu but will require updated corporate documents every time a transaction occurs.

From the full guide: Buying Property in Israel as a Non-Resident: Step-by-Step Legal Guide

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