Purchase tax (mas rechisha) for foreign investors in Israel

A home bought by a non-resident: 8% and 10%

Any home that is not the buyer’s sole home in Israel is taxed at 8% on the part of the value up to NIS 6,055,070 and 10% above it. Land Taxation Law, s. 9(c1f).

This rate was extended to 31 December 2026 by order (Kovetz Takanot 11633, 25 Dec 2024).

The sole-home table counts as an Israeli resident someone who becomes a resident within two years of the purchase. A buyer who stays abroad pays the 8% and 10% rate. Land Taxation Law, s. 9(c1c)(4)(b).

The sole-home table, for comparison

For an Israeli resident buying a sole home: 0% up to NIS 1,978,745, 3.5% up to NIS 2,347,040, 5% up to NIS 6,055,070, 8% up to NIS 20,183,565 and 10% above. Land Taxation Law, s. 9(c1c)(3).

These amounts are normally updated each 16 January, but indexation is suspended for tax years 2025 to 2027. Land Taxation Law, s. 9(c2).

Land, offices, shops, industrial

Anything that is not a residential apartment is taxed at a flat 6%. Purchase Tax Regulations 1974, reg. 2(1).

For land with a building plan, one sixth of that 6% can be refunded if a building permit is obtained within 24 months (temporary provision of 2024). Reg. 2(1a).

New immigrants (olim)

An oleh buying a sole home pays 0% up to NIS 1,978,745 and 0.5% up to NIS 6,055,070, then the normal sole-home rates. Purchase Tax Regulations, reg. 12A.

The purchase must fall between one year before and seven years after aliyah, the benefit is given once, and not on a home worth more than NIS 20,183,565. Regs. 12 and 12A.

Deadlines

The buyer files a declaration with the Tax Authority within 30 days of the purchase. Land Taxation Law, s. 73(c).

The tax is paid within 60 days of the sale. Land Taxation Law, s. 90A.

In a receivership sale the same rules apply: the buyer pays purchase tax. Land Taxation Law, s. 9(a).