Can a foreign national buy KKL (Keren Kayemet LeYisrael) land in Israel?

Israel's land ownership structure is unique globally. Approximately 93% of Israeli land — comprising State land, KKL land, and Development Authority land — is administered by the Israel Land Authority (ILA) under the Israel Land Law 5720-1960. KKL land is bound by the KKL charter, which restricts alienation of the underlying title to the Jewish people collectively. This restriction applies to the freehold title, not to the leasehold right granted on top of it. The ILA routinely grants residential and commercial leaseholds on KKL land to individuals — including non-Jewish Israeli citizens and foreign nationals — for terms of 49 or 98 years. From a practical standpoint, an apartment built on KKL land is marketed, bought, sold, and mortgaged in the same way as any other leasehold property in Israel.

For a foreign national, acquiring a leasehold apartment on KKL land follows the same process as any other non-resident property purchase in Israel. Purchase tax, betterment tax on eventual sale, and income tax on rental income all apply exactly as for any other property type. A due diligence step that is especially important on KKL land is verifying whether the ILA charges a capitalization fee (dmei hakara or dmei haskama) on transfer — a fee of 0.5–3.75% of land value that applies on certain categories of ILA-administered land when the leasehold is sold. The Land Registry extract (nesach tabu) identifies the land's block and parcel and states whether the title is privately held or administered by the ILA/KKL. An Israeli real estate attorney should conduct this check before any purchase agreement is signed.

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

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