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Inheritance & Probate

Who pays the arnona and building fees on an Israeli apartment after the owner dies?

The estate pays, not the heirs personally. Sections 104 and 128 of the Succession Law 5725-1965 treat ongoing charges on estate property as a debt of the estate and cap an heir's exposure at the value of what they actually receive. Arnona liability follows whoever holds the apartment, so the municipality must be told that the owner has died and told who now holds the keys. Building committee dues keep accruing under Section 58 of the Land Law 5729-1969, because that obligation attaches to the apartment itself rather than to the person.

Israeli succession law treats the estate as a separate pool of assets and debts until a succession order or probate order issues and the property is divided. Section 104 ranks the expenses of administering the estate ahead of ordinary debts and legacies, and the running costs of an apartment sit in that first tier. Arnona follows a different logic: the Municipalities Ordinance imposes the charge on the machzik, the person holding the property, rather than on the registered owner. Where nobody occupies the apartment, the municipality looks to the heirs or to an appointed estate administrator once it learns who they are. Building committee dues run under Section 58 of the Land Law, which obliges each apartment owner to contribute to the upkeep of the common property in proportion to their share.

For a foreign heir the exposure sits in the gap between the death and the transfer of title, which rarely closes in under three to six months. Arrears accumulate with interest and index linkage, and the Land Registry will not register the apartment in the heirs' names without a municipal clearance certificate, so unpaid arnona ends up blocking the very transfer the heirs want. Write to the municipality early, report the death, and ask about the vacant property exemption if the apartment is genuinely empty and unused. Keep every receipt, because an heir who funds the bills personally recovers the money from the estate before the balance is split, but only against documentation. Our guide to heir liability for estate debts in Israel sets out the wider picture of what heirs do and do not owe.

⚖ In Practice
  • Governing law: Sections 104 and 128, Succession Law 5725-1965; Section 58, Land Law 5729-1969; Municipalities Ordinance [New Version] on arnona liability
  • Competent authority: Registrar of Inheritance Affairs (Rasham LeInyanei Yerusha); the local municipality (iriya); Supervisor of Condominiums (HaMefake'ach al HaBatim HaMeshutafim) for building committee disputes
  • Vacant property relief: a one-time arnona exemption of up to 6 months across the whole period of ownership, granted on written application with proof the apartment is empty and unused
  • Reimbursement: carrying costs paid personally by an heir rank as estate administration expenses under Section 104 and are repaid before the heirs divide the balance
  • Registration block: the Land Registry requires a municipal clearance certificate (ishur iriya) before recording the transfer to heirs, so arrears must be cleared first
  • Timeline: an uncontested succession order typically takes 3 to 6 months, and arnona is billed on a two-month cycle, so budget for several billing periods

From the full guide: Heir Liability for Estate Debts in Israel: What You Owe (and What You Don't)

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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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