Calculate the Full Cost of Buying Property in Israel

Purchase tax (mas rechisha)

The biggest item. Every buyer pays it, and it is calculated in brackets, like income tax: each rate applies only to the part of the price that falls within its bracket. For a resident buying their only home, the first bracket up to ₪1,978,745 is exempt, followed by 3.5% up to ₪2,347,040, 5% up to ₪6,055,070, 8% up to ₪20,183,565 and 10% above that. For an additional home or a non-resident buyer, the rate is 8% from the first shekel up to ₪6,055,070, then 10%.

Lawyer's fees

In Israel each side has its own lawyer. Yours checks the property, negotiates and drafts the contract, files the tax return and registers ownership. Fees are freely negotiated; the calculator defaults to a common assumption of 0.5% of the price plus VAT, which you can change.

Brokerage

If you use an agency, its commission must be agreed in writing before any viewing. The calculator uses an editable assumption of 2% plus VAT, and a “no agent” box if you buy directly from a developer or private seller.

Technical survey

An engineer's inspection flags defects before you commit. The default assumption is ₪3,000; adjust it to the size of the home and the quote you receive.

Possible bank charges

If you finance with a mashkanta (Israeli mortgage), the bank may charge arrangement fees and require a valuation. These vary between banks, so ask your mortgage broker before signing.

Buyers from abroad often expect a notary, title company or escrow agent to close the deal. In Israel there is none. Each party's lawyer secures the transaction: they check the property's entry in the Tabou (the land registry), confirm there are no mortgages or liens, draft the contract and register the transfer of ownership at the Tabou once the price has been paid.

Your “closing costs” in Israel are therefore mainly the purchase tax and lawyer's fees, plus brokerage and a survey. That is exactly the total the calculator above adds up.

Israeli resident – only home

The most favourable scale, with a first bracket exempt up to ₪1,978,745.

Resident – additional home, and non-residents

8% applies from the first shekel, then 10% above ₪6,055,070. These rates come from a temporary provision in force until 31/12/2026. A non-resident who becomes a resident within a set period after buying may, under conditions, later claim the only-home rates.

Oleh hadash – only home

For purchases since 15/08/2024, from one year before to seven years after aliyah, regulation 12A provides 0% up to ₪1,978,745, then 0.5% on the part of the price between that threshold and ₪6,055,070. Above that amount, the calculation depends on your situation and should be checked by a lawyer.

How much purchase tax on a ₪2,500,000 home?

For a resident buying their only home, ₪20,538. For an additional home or a non-resident, ₪200,000. For an oleh hadash buying their only home, ₪2,606.

Do foreign buyers pay more tax?

Yes: non-residents fall under the same scale as an additional home, 8% up to ₪6,055,070 and 10% above, under the temporary provision in force until 31/12/2026.

Who calculates and pays mas rechisha?

The buyer pays. Your lawyer calculates the exact amount, files the return with the Israel Tax Authority and makes sure it is paid before registration at the Tabou.

Are lawyer and brokerage fees set by law?

No, they are negotiated. The calculator's values are common, editable assumptions, not official rates.

Does this replace advice from a lawyer?

No. It gives a reliable ballpark based on official scales, but your exact situation (status, aliyah date, other properties owned) must be confirmed by your lawyer.