Should a foreign buyer hold Israeli property personally or through a company?

Israeli law lets a foreign national own real estate directly or through a company, whether Israeli or foreign. Direct ownership registers the individual on the title at the Land Registry (Tabu) and taxes any future gain under the capital-appreciation rules for individuals, which include inflationary relief. A company instead holds the title, and a sale produces a gain taxed at the corporate rate, followed by dividend tax when profits reach the shareholder. That two-tier charge often outweighs any benefit for a single home. Both the purchase-tax rates and the sale-stage rules come from the Land Taxation (Appreciation and Purchase) Law 5723-1963, explained in our guide to buying property in Israel as a non-resident.

A company structure earns its keep when several investors pool funds, when the plan is to buy and develop multiple units, or when the owner wants liability and succession separation, since transferring shares can be cleaner than transferring registered land. The trade-offs are real. A company files annual financial statements, retains an Israeli accountant, pays Companies Registrar fees, and often faces harder mortgage terms, because banks lend more readily to individuals. Foreign residents also generally do not receive the reduced single-home purchase-tax rate, whichever route they choose. Decide the structure before signing, because moving property between yourself and a company later triggers purchase tax and appreciation tax a second time.

From the full guide: Buying Property in Israel as a Non-Resident

← Browse all Q&A