Buying Your First Home as a New Oleh in Israel: Step by Step

Buy before or after aliyah?

It is the first question most families ask. There is no one-size-fits-all answer: it depends on how well you know the country, your work situation and how you plan to finance the purchase.

Renting first has real advantages. You get to know neighborhoods day to day, try out commutes, schools, shuls and local life before committing. You avoid choosing the wrong city or street, a costly and common mistake among newcomers. And once you have Israeli income, your mortgage application is often stronger.

Buying before or right after arrival has other benefits. You move straight into your own home, with no double move. You lock in a property in a sought-after area or a new development you love. And if you are not moving in right away, the apartment can be rented out in the meantime.

The good news: you do not have to rush. The olim tax benefit covers the period from one year before aliyah to seven years after. You can buy shortly before you arrive, or take several years to settle in and choose calmly.

The olim purchase tax benefit

Purchase tax (mas rechisha) is the biggest cost of buying property in Israel. New olim benefit from a reduced scale under regulation 12A. For purchases made since 15/08/2024, for an only home, the scale is:

• 0% up to ₪1,978,745;
• 0.5% on the part of the price between ₪1,978,745 and ₪6,055,070;
• above ₪6,055,070, your situation should be checked with a lawyer.

Financing: the mashkanta

An Israeli mortgage is called a mashkanta. Israeli banks usually build it from several tracks (“maslulim”): fixed or variable, index-linked or not. This multi-track structure is quite different from a typical US or UK mortgage and is worth understanding properly.

Many olim work with a mortgage broker (yoetz mashkantaot). They compare bank offers, design the mix of tracks that fits your profile and negotiate on your behalf. For a newcomer whose income is partly earned abroad, that help is often invaluable.

Start gathering paperwork early: proof of income, bank statements, tax returns, ID and your teudat oleh. If your income comes from abroad, banks will ask for translated and sometimes certified documents. Get an approval in principle (ishur ekroni) before signing anything: it tells you what you can realistically borrow.

Choosing your city

Your city shapes your daily life as much as your budget. Here is how we see the cities where we help buyers:

• Raanana real estate — Raanana: green and relaxed, a long-standing favorite of the English-speaking community and families.
• Jerusalem real estate — Jerusalem: the capital, for rich religious and cultural life, with established English-speaking neighborhoods.
• Tel Aviv real estate — Tel Aviv: the country's business and cultural hub, for an urban, international lifestyle.
• Herzliya real estate — Herzliya: upscale villas and apartments close to the sea and the tech parks.
• Netanya real estate — Netanya: a coastal city with a large French-speaking community and a growing English-speaking one.
• Ashdod real estate — Ashdod: big beaches, family-friendly neighborhoods, a strong French-speaking community and our local office.

New build or resale?

With a resale apartment (yad shniya), you see exactly what you are buying, can move in quickly and negotiate directly with the seller. On the other hand, the building may be older, with no elevator, parking or safe room, and renovation may be needed. Some older buildings are part of urban renewal projects (tama or pinui-binui), which can add value over time but mean years of construction: your lawyer checks the building's status.

With a new build, you often buy off-plan from a developer, getting a modern apartment and new common areas, with payments spread over construction. It can work well if your aliyah is planned for the medium term, as the apartment may be delivered just as you settle in. But off-plan buying follows specific rules (guarantees, index linkage, delays) that you need to know before signing.

Neither option is better in absolute terms: it depends on your timeline, budget and tolerance for delays. We show you both types of property and help you compare them objectively.

The process, step by step

1. Search: set your budget with your broker, choose neighborhoods and criteria, then receive a property shortlist, off-market included.
2. Viewing: in person or by video, with an advisor who points out the strengths and weaknesses of the apartment and the building.
3. Lawyer: hire your own lawyer, independent from the seller. They check the land registry, debts and permits, and draft the contract.
4. Contract: negotiate price and terms, sign, make the first payment, then file the purchase tax return.
5. Tabu: register your ownership at the land registry (Tabu), or with the relevant authority depending on the property.

Buying remotely before you arrive is entirely possible. We run video viewings, your lawyer handles due diligence and you can sign through a power of attorney. You land in Israel with your home already secured.

Common mistakes to avoid

A local advisor who is independent from the seller helps you avoid these traps: they know the neighborhoods, the buildings and the local customs, and they speak your language. That is what our support is about, from the first search to key handover.

• Choosing a city from photos: the street, the floor and the orientation change everything. Visit, or have someone you trust view by video, at different times of day.
• Signing anything before hiring a lawyer: in Israel, even a “zikhron devarim” (memorandum of understanding) can be binding. Sign nothing without your lawyer.
• Forgetting the extras: purchase tax, lawyer, any agency commission, furniture, arnona (municipal tax) and building fees (vaad bayit) all belong in your budget.
• Assuming the olim benefit is automatic: it depends on your status, purchase date and assets. Have it confirmed before setting your budget.
• Overlooking the money transfer: plan for bank timelines and the source-of-funds documents Israeli banks request, so payment day is not delayed.

What if I rent the property out until I move in?

If you buy before aliyah, or your move takes time, renting the apartment covers part of your costs and avoids an empty home. We handle everything: letting, tenant screening, a lease aligned with your arrival date, rent collection, maintenance and reporting. With over 13 years of experience and 450 owners supported, we also prepare the handover on the day you move in.

Frequently asked questions