Purchase tax in Israel for foreign residents (2026 guide)
Updated November 2026 · agent+
Purchase tax (mas rechisha, מס רכישה) is the single largest cost on top of the price when you buy a home in Israel from abroad. Foreign residents are taxed as if the apartment were an additional home, even if it is the only property they own anywhere. This guide gives you the 2026 brackets, a few worked examples and the practical deadlines.
The 2026 brackets for a foreign resident
A buyer who is not an Israeli tax resident pays purchase tax on the “additional apartment” schedule: 8% on the part of the price up to about ₪6,055,000, and 10% on anything above that. The brackets were frozen for 2025–2026 and are not inflation-linked for now.
Example: an apartment bought for ₪3,000,000 carries purchase tax of ₪240,000 (8%). At ₪7,000,000 the tax is ₪484,400 on the first ₪6,055,000 plus ₪94,500 on the rest, about ₪578,900 in total, an effective rate of 8.3%.
The same schedule applies whether you buy a new apartment from a developer or a second-hand one, and whether or not you take a mortgage.
The oleh track: a much lower rate
A new immigrant (oleh chadash) buying a home for personal use can use a reduced track once: roughly 0.5% on the first ₪1.99 million and 5% above that. The window runs from one year before aliyah to seven years after. On a ₪3,000,000 apartment that is about ₪60,000 instead of ₪240,000.
If aliyah is on your horizon, the timing of the purchase relative to your aliyah date can change the tax bill by hundreds of thousands of shekels. Discuss the sequence with a lawyer before you sign anything.
Deadlines and how it is paid
The purchase is reported to the Israel Tax Authority within 30 days of signing the contract, and the tax is normally paid within 60 days. Your lawyer files the self-assessment; the Tax Authority can review it for a few years afterwards.
Payment is in shekels, from an Israeli bank account or through your lawyer’s trust account. Late payment accrues interest and linkage, so the money should be in Israel before the deadline.
What foreign buyers often get wrong
Owning no other property does not make you a “first home” buyer: residency is what counts, not the number of apartments you own. A few narrow exceptions exist for people who are in the process of becoming residents; they are decided case by case.
Buying through a foreign company does not reduce purchase tax, and usually makes the later sale and rental taxation more complicated.
Purchase tax is not the only tax to plan for. Rental income tax and capital gains tax on a future sale are covered in our other guides.
Frequently asked questions
›Do foreign residents pay more purchase tax than Israelis?
Usually yes. An Israeli resident buying a first home pays 0% on a large part of the price, while a foreign resident pays 8% from the first shekel on the additional-home schedule.
›Can I get the oleh rate before I make aliyah?
Yes, if you make aliyah within one year after the purchase and the apartment is for your own use. If aliyah does not happen within the window, the difference becomes due.
›Is purchase tax included in the price a developer quotes?
No. Developer prices include VAT but not purchase tax, lawyer fees or registration costs. Budget about 9% to 11% on top of the price for a foreign resident.
›Who files the purchase tax return?
Your Israeli lawyer files it online within 30 days of signing, using a power of attorney if you are abroad.
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.