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Can I split an Israeli apartment into two separate rental units?

Only with a building permit. Section 145 of the Planning and Building Law 5725-1965 treats the division of a dwelling into two units as work requiring a permit from the local planning and building committee, even when no external wall is touched. The applicable town plan must allow the additional unit, and the building's condominium bylaw and the other owners' rights are a separate hurdle. Splitting without a permit exposes the owner to administrative fines, a demolition order, a retroactive arnona assessment and problems on any future sale or mortgage.

Two separate approvals sit behind a legal split. The planning side runs through the local planning and building committee (va'adah mekomit), which checks the applicable town plan (tochnit binyan ir) for the number of housing units permitted on the plot, plus parking, minimum floor area and access requirements. Several municipalities, Tel Aviv and Jerusalem among them, have adopted policies that permit splitting under defined conditions, so the answer varies by address rather than being uniform across the country. The ownership side runs through the Land Law 5729-1969: a new unit only becomes a separately registered apartment once the condominium registration and its bylaw (takanon) are amended, which normally needs the consent of the other owners or a decision of the Condominium Supervisor.

Foreign owners frequently discover the problem in reverse, after buying a property that a previous owner already divided. Enforcement tightened considerably under Amendment 116 to the Planning and Building Law, which gave inspectors administrative demolition and stop-work powers and raised penalties, and liability attaches to the current owner rather than the person who did the work. Before splitting, commission a licensed architect to confirm the plan permits it, obtain the building permit in writing, notify the municipality so each unit is assessed for arnona correctly, and tell the insurer. An unpermitted second unit will surface in the buyer's due diligence and in any bank valuation.

⚖ In Practice
  • Governing law: Section 145, Planning and Building Law 5725-1965; enforcement powers under Amendment 116 (2017); condominium registration under the Land Law 5729-1969
  • Competent authority: local planning and building committee (Va'adah Mekomit LeTichnun U'Bniya); Condominium Supervisor (HaMefake'ach al Rishum Mekarke'in) and the Land Registry for the ownership split
  • Who files: a licensed architect or engineer submits the permit application; municipal fees commonly run to several thousand shekels, plus a betterment levy (heitel hashbacha) where the plan increases value
  • Timeline: typically 6–18 months from application to permit, longer where neighbours object
  • Penalties: administrative fines and demolition orders for unpermitted division; the municipality can also reassess arnona for both units retroactively

From the full guide: Building Permits in Israel: A Guide for Foreign Property Owners

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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