Land of the State in Israel is marketed by the Israel Land Authority (Rashut Mekarkei Israel, ILA), which must use a tender unless an exemption applies (Mandatory Tenders Regulations 1993, ch. C). The rules come from three laws, the Mandatory Tenders Regulations and the booklet of each tender. This article reads them, with a live tender as the worked example: tender 84/2026, a plot for 102 apartments in Ramla, deadline 2 November 2026.
What the ILA sells: a lease, not ownership
Israel Lands, meaning land of the State, the Development Authority or the Jewish National Fund, may not be transferred in ownership, by sale or otherwise. Basic Law: Israel Lands, s. 1.
The exceptions are listed by law, among them transfers of urban land of the State or the Development Authority within an area cap. Israel Lands Law 1960, s. 2(7).
What a tender offers is a capitalised direct lease (chakhira mehuvenet) for 98 years, with an option for a further 98 years on the terms then in force. Tender booklets 84/2026 (Ramla) and 162/2026 (Lahavim), invitation.
“Capitalised” means the lease fees for the whole remaining term are paid upfront. Israel Land Authority Law 1960, s. 4Yod-Zayin(a).
For urban land under a capitalised residential or employment lease, the ILA offers the lessee ownership, free or against payment, as decided by the Israel Land Council. Israel Land Authority Law, s. 4Yod-Zayin(b) and (b1).
Who may bid, and the rule for foreigners
In the Ramla tender any individual or corporation may bid. Booklet 84/2026, s. 3.2.1.
A bidder who is a “foreigner” under the Israel Lands Law is subject to the rules on allocating land to foreigners, and bids through an attorney-in-fact. Booklet 84/2026, s. 3.2.4.
A foreigner is an individual who is neither an Israeli citizen, nor an Israeli resident, nor entitled to immigrate under the Law of Return; a corporation controlled by such persons; or anyone acting for them. The rule covers ownership and any lease longer than five years in total, options included, so a 98-year lease is covered. Israel Lands Law, s. 2A(a).
Approval is given by the chair of the Israel Land Council, on a sub-committee’s recommendation and after consulting the Ministers of Defence and Foreign Affairs. The ILA director may approve alone one residential unit for an individual foreigner who holds no other. Israel Lands Law, s. 2A(b)(3) and (b)(5)(a).
A transfer made in breach of s. 2A has no effect and is not registered at the Land Registry. Israel Lands Law, s. 2A(d).
- Some tenders are closed to most buyers: tender 162/2026 for 76 plots in Lahavim is open to IDF reservists only. Booklet 162/2026, invitation.
Where tenders are published, and the types
A public tender is announced in a newspaper and on the internet a reasonable time before the deadline. Mandatory Tenders Regulations 1993, reg. 15(a), applied to the ILA by reg. 29.
The ILA publishes every tender, its booklet, its updates and its results on its tenders portal. On 5 October 2026 the portal’s active search returned 439 tenders: 245 regular public tenders, 93 registration-and-lottery, 35 initiative tenders, 27 target-price, 24 rental-housing and 13 Amidar sales, among others.
In listed cases the ILA may use a closed tender in which a lottery can be held instead of a public tender. Mandatory Tenders Regulations, reg. 26.
Bids are filed online after identification on the government identity system, from 21 days before the deadline at the earliest. Booklet 84/2026, introduction, para. 2.
Existing buildings are sold too. When two public tenders with identical terms close without a valid bid, the property may be granted at the government appraiser’s price without a new tender. Mandatory Tenders Regulations, reg. 25(22). Procedure 636/2026, a 96.2 sq m unit at 36 Yehuda HaYamit Street in Jaffa, is sold this way on a first-come basis.
How the winner is chosen
Bidders compete on the price of the land alone, excluding VAT and development costs. The highest valid offer wins. Booklet 84/2026, ss. 3.1.3 and 3.1.5.
An offer below the minimum price is disqualified. In Ramla the minimum is the appraiser’s value, reduced by 15% if there are three valid offers or more, 30% for two and 50% for one, then multiplied by 91% for the lease. Booklet 84/2026, s. 3.1.4.
For the Ramla plot (3,923 sq m, 102 units) the minimum with three or more offers is NIS 4,925,772 excluding VAT. Booklet 84/2026, s. 1.
Two identical valid offers are separated by a digital lottery. Booklet 84/2026, s. 9.4.
The ILA may still cancel the tender or change its terms, and is not bound to accept the highest offer. Booklet 84/2026, s. 9.5.
Guarantee, payments and development costs
The tender committee may require a bid guarantee and set its type, amount and term. Mandatory Tenders Regulations, reg. 16B(a).
In Ramla the bid carries an autonomous digital guarantee of NIS 3,608,000, issued by a bank or insurer authorised by the Accountant General and valid to 2 April 2027. Booklet 84/2026, ss. 1 and 7.1.
Once the tender committee approves the winner, the ILA cashes the guarantee as a first payment. The balance of the price plus VAT is due within 90 days of that approval. Booklet 84/2026, ss. 5.2.1.1 and 5.2.1.2.
Development costs are paid on top of the price, to the ILA, within the same 90 days: NIS 11,822,128 for the Ramla plot. Municipal levies and water-corporation connection fees are charged separately. Booklet 84/2026, ss. 1, 5.3 and 5.4.1.
The winner must also return the signed lease within 90 days of approval. Booklet 84/2026, s. 10.2.3.
If you do not pay
If the full price plus VAT is not paid within 90 days, the award is cancelled and the guarantee may be forfeited. Booklet 84/2026, s. 5.2.1.3.
If the development costs are not paid in full within 90 days, the winner’s right lapses. Booklet 84/2026, s. 5.4.2.
Any delay in the payment, lease or guarantee deadlines voids the award. A late guarantee is a defect that cannot be cured. Booklet 84/2026, ss. 10.3 and 10.5.
The committee may forfeit a guarantee, after hearing the bidder, where the bidder withdrew after the deadline, gave misleading information, or did not meet the conditions for signing the contract. Mandatory Tenders Regulations, reg. 16B(b). The bidder has 30 days from cancellation to object in writing. Booklet 84/2026, s. 11.1.
Forfeiture does not exhaust the ILA’s remedies: it may also claim higher damages or specific performance. Booklet 84/2026, s. 11.2. Each tender has its own booklet; read it, with a lawyer, before bidding.
FAQ
Can a foreigner bid in an ILA tender?
Yes, but the allocation needs approval under s. 2A of the Israel Lands Law. A person entitled to immigrate under the Law of Return is not a foreigner for this purpose.
Do I own the land after winning?
No. You sign a capitalised lease of 98 years with an option for 98 more. Ownership of urban land may later be offered to the lessee under s. 4Yod-Zayin of the ILA Law.
How long do I have to pay?
In tender 84/2026, 90 days from the tender committee’s approval, for the price plus VAT and for the development costs.
What happens to my guarantee if I lose?
It is not cashed. The winner’s guarantee is cashed as the first payment on the price.
Sources
- Basic Law: Israel Lands, s. 1 (Hebrew, Nevo)
- Israel Lands Law 1960, ss. 2 and 2A (Hebrew, Nevo)
- Israel Land Authority Law 1960, s. 4Yod-Zayin (Hebrew, Nevo)
- Mandatory Tenders Regulations 1993, regs. 15, 16B, 25, 26, 29 (Hebrew, Nevo)
- Israel Land Authority, land tenders portal
- ILA tender 84/2026, Ramla, tender booklet (Hebrew)
- ILA tender 162/2026, Lahavim, tender booklet (Hebrew)
- ILA / Amidar procedure 636/2026, Tel Aviv-Jaffa (Hebrew)
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