Real Estate

What are the typical closing costs of buying property in Israel beyond the purchase price?

Q: What are the typical closing costs of buying property in Israel beyond the purchase price?

Budget roughly 6% to 10% of the price on top of the purchase amount. The largest item is purchase tax (mas rechisha) under the Land Taxation (Appreciation and Purchase) Law 5723-1963, which for a foreign buyer or second home runs from 8% to 10%. On top of that come legal fees of about 0.5% plus VAT, an agent commission of about 2% plus VAT, and smaller charges for a mortgage, appraisal, registration, and document apostille. A buyer's own apartment that qualifies for resident rates pays far less purchase tax, which changes the total sharply.

      Budget roughly 6% to 10% of the price on top of the purchase amount. The largest item is purchase tax (mas rechisha) under the Land Taxation (Appreciation and Purchase) Law 5723-1963, which for a foreign buyer or second home runs from 8% to 10%. On top of that come legal fees of about 0.5% plus VAT, an agent commission of about 2% plus VAT, and smaller charges for a mortgage, appraisal, registration, and document apostille. A buyer's own apartment that qualifies for resident rates pays far less purchase tax, which changes the total sharply.
    

The headline cost when buying an Israeli property is purchase tax, charged on a sliding scale under the Land Taxation (Appreciation and Purchase) Law 5723-1963 and its regulations. An Israeli resident buying their only home pays nothing up to a threshold and then graduated rates, while a non-resident or a buyer who already owns a home is treated as acquiring an additional property and pays from 8% on the first bracket up to 10% on the portion above roughly NIS 5.9 million. The brackets are updated each January. Alongside the tax, the standard professional costs are conveyancing legal fees, customarily around 0.5% of the price plus 18% VAT, and, where a broker is involved, an agent commission of about 2% plus VAT from each side that engaged the agent.

Smaller but real charges round out the bill: a bank appraisal (shamaut), mortgage arrangement fees if you borrow, Land Registry (Tabu) registration fees, and the cost of registering a cautionary note to protect the deal before transfer. Foreign buyers should also price in apostilled and translated documents and, often, a power of attorney so the transaction can close without flying in. Because purchase tax dwarfs every other line, the single biggest variable is your residency and ownership status, so confirm your bracket before signing. Our full guide to buying property in Israel as a non-resident walks through each step and where these costs fall.

⚖ In Practice

Governing law (purchase tax): Land Taxation (Appreciation and Purchase) Law 5723-1963
Competent authority: Israel Tax Authority (Rashut HaMisim) and the Land Registry (Tabu)
Purchase tax: 8%–10% for a non-resident or additional home (2026 brackets); reduced graduated rates for a qualifying single resident home
Legal (conveyancing) fees: customarily about 0.5% of the price plus 18% VAT
Agent commission: about 2% plus VAT, where a broker is used
Other charges: bank appraisal, mortgage arrangement fees, Tabu registration, cautionary note, apostille and translation of documents

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

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What are the typical closing costs of buying property in Israel beyond the purchase price?

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