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What purchase tax rate does a new immigrant (oleh) pay when buying an apartment in Israel?

New immigrants (olim chadashim) buying a sole residential apartment in Israel pay no purchase tax on the first NIS 1,978,745 of the price, 0.5% on the portion up to NIS 6,055,070, and the ordinary sole-apartment rates above that, under Regulation 12A of the Purchase Tax Regulations 5735-1974 (in force since 15 August 2024). This is dramatically lower than the 8% and 10% rates non-residents pay. The benefit may be used once, for a purchase made from one year before to seven years after aliyah, and must be claimed in the purchase tax declaration, which is due within 30 days of signing the purchase contract (the tax itself is payable within 60 days).

The purchase tax (mas rechisha) concession for new immigrants is provided under Regulation 12A of the Purchase Tax Regulations 5735-1974, made under the Land Taxation Law 5723-1963. On a sole apartment, the oleh track replaces the 3.5% and 5% bands that Israeli residents pay with a single 0.5% band up to NIS 6,055,070, and it is far below the 8% and 10% rates imposed on non-residents. Above NIS 6,055,070 the ordinary sole-apartment rates apply to the excess, and all brackets are frozen until 15 January 2028. On a NIS 3,000,000 apartment, an oleh pays about NIS 5,100, against about NIS 45,500 for a resident sole-apartment buyer and NIS 240,000 for a non-resident. The benefit may be used once: a purchase outside the window, or a second purchase, receives no further oleh concession, and the standard rate will apply. For a complete breakdown of all purchase tax rates for foreigners and new immigrants, including the tiered schedule for Israeli residents, the comparison is substantial.

For foreign nationals planning aliyah alongside a property purchase, the timing relative to the aliyah date is critical. The seven-year window runs from the date oleh status is formally granted — typically the date of arrival in Israel as a new immigrant. The purchase tax declaration must be submitted to the Israel Tax Authority (Rashut HaMisim) within 30 days of signing the purchase contract (Section 73 of the Land Taxation Law), the tax must be paid within 60 days of signing (Section 90A), and the oleh rate must be claimed in this initial declaration. Claiming the rate retroactively after filing a standard declaration is significantly more complex and may require a formal amendment. A purchase made up to one year before arrival in Israel as an oleh can also qualify, with the oleh rate claimed after aliyah by amending the declaration.

⚖ In Practice
  • Governing law: Land Taxation (Betterment and Acquisition) Law 5723-1963; Purchase Tax Regulations 5735-1974, Regulation 12A
  • Competent authority: Israel Tax Authority (Rashut HaMisim), Land Taxation Department
  • Oleh purchase tax rates: 0% up to NIS 1,978,745; 0.5% up to NIS 6,055,070; sole-apartment rates above (frozen until 15 January 2028)
  • Standard non-resident rates: 8% up to NIS 6,055,070 and 10% above (2026)
  • Deadlines: declaration within 30 days of contract signing (claim the oleh rate in it); payment within 60 days
  • Benefit limit: One use per immigrant; purchase from one year before to seven years after arrival

From the full guide: Purchase Tax in Israel for Foreigners and New Immigrants: Rates, Exemptions and Process

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