The real cost of buying in Israel: lawyer, broker, VAT and other fees
Updated November 2026 · agent+
The price is only the start. For a foreign resident, the extras typically add 9% to 11% of the price. This guide lists each item with its usual range so that your budget is right before you fall for an apartment.
The big one: purchase tax
8% of the price up to about ₪6.05 million and 10% above, for anyone who is not an Israeli tax resident. On ₪3,000,000 that is ₪240,000. Olim have a reduced track; see our purchase tax guide.
Lawyer
A second-hand purchase: 0.5% to 1% of the price plus 18% VAT, with a minimum for small deals. In a new project you also pay a share of the developer’s lawyer for registration, capped by law at roughly 0.5% plus VAT or a fixed indexed sum, whichever is lower. You should still have your own lawyer review the developer’s contract.
Brokerage
Second hand: the customary buyer’s fee is 2% of the price plus VAT, paid at signing. In new projects the developer usually pays the agent, so our service is free to the buyer; we tell you up front whenever that is not the case.
VAT
VAT in Israel has been 18% since January 2025. It applies to lawyer, broker, appraiser and management fees. Developer prices for new apartments already include VAT; second-hand sales between private individuals carry none.
Smaller items
Land Registry fees and caveat registration: a few hundred shekels. Bank appraisal for a mortgage: ₪1,500–3,000. Mortgage opening fee and notary for the loan documents: typically ₪2,000–5,000. Certified translations and the apostilled power of attorney: ₪500–2,000. Currency conversion spread: 0.2%–1% of the amount depending on how you convert.
After delivery: building fees (va’ad bayit) of ₪300–1,500 a month in Tel Aviv depending on the building, municipal tax (arnona) by area and size, and insurance.
A worked budget: ₪3,000,000 second-hand apartment, foreign resident
Purchase tax ₪240,000. Lawyer about ₪26,500 including VAT. Brokerage ₪70,800 including VAT. Registration, translations and power of attorney about ₪3,000. Total extras about ₪340,000, or 11.3% of the price. With a mortgage, add roughly ₪5,000–8,000 of bank costs.
The same apartment bought new from a developer, with no buyer’s brokerage: about ₪265,000 of extras, or 8.8%.
Frequently asked questions
›Are there yearly taxes on owning an apartment in Israel?
No ownership tax. You pay municipal tax (arnona) and building fees, both monthly, and income tax on rent if you let it.
›Is the broker fee negotiable?
The 2% is customary, not fixed by law, and depends on the deal. In new projects the buyer usually pays nothing.
›What happens to the deposit if the deal falls through?
Contracts set an agreed compensation, usually 10% of the price, payable by the side that breaks the contract.
General information, current as of the date shown; not legal or tax advice. Brackets and rates change: check your own situation with an Israeli lawyer or tax adviser before you sign.