Everything you need to know before purchasing real estate in Israel as a foreign buyer — from first steps to key handover and beyond.
Understanding how property purchases work in Israel for international buyers — from eligibility to keys.
Yes. Israeli law permits foreign nationals and non-residents to purchase real estate freely. There are no restrictions on foreign ownership of residential property. Foreign buyers have the same legal protections as Israeli citizens, including the bank guarantee framework for off-plan projects.
There is no requirement to hold Israeli citizenship, permanent residency, or a specific visa. US, European, Australian, and other foreign nationals all purchase in Israel regularly. DDG has supported buyers from over 20 countries.
The standard purchase process for a foreign buyer involves these stages:
DDG coordinates every step and provides a dedicated contact throughout.
From initial enquiry to signed purchase agreement typically takes 3–8 weeks for a foreign buyer. The timeline depends on how quickly you can engage a lawyer, obtain required documents, and complete due diligence. DDG can often accelerate this timeline by providing pre-vetted project documentation and lawyer introductions.
For popular projects where inventory is limited, faster timelines may be necessary to secure preferred units. The DDG team will advise on urgency for each project.
Under Israel's Sale of Apartments Law (1973), developers who sell off-plan units must protect buyer payments through one of several approved mechanisms. The most common is a bank guarantee (known as a "Hoshen"), issued by a licensed Israeli bank.
The guarantee ensures that if the developer becomes insolvent or fails to deliver, the bank is legally obligated to return all payments made by the buyer. The guarantee is tied to your specific unit and covers the full amount you've paid up to any given point.
DDG only represents projects where buyer payment protection is confirmed in place. Your Israeli lawyer will verify the specific protection mechanism before you sign.
No. The entire purchase can be completed remotely. Your Israeli lawyer will arrange a Power of Attorney (POA) document, which allows them to sign on your behalf in Israel. The POA can typically be notarised and apostilled in your home country.
Payments are made by international wire transfer. DDG has managed fully remote transactions for buyers in the United States, UK, France, Canada, Australia, and many other countries. No Israeli bank account is required for the purchase itself.
Have questions about the buying process? Our team answers specific questions on a 30-minute call at no charge.
Book a Free Call → WhatsAppA full picture of the taxes and fees involved in purchasing property in Israel as a non-resident.
Foreign residents who do not hold a permanent Israeli residential address pay purchase tax (Mas Rechisha) at the following rates (2025 thresholds):
These rates apply to non-residents purchasing their first or additional properties in Israel. Israeli residents buying an additional property pay different rates on a sliding scale. Thresholds are adjusted periodically — always verify the current rate with your Israeli lawyer.
Note: Purchase tax must be paid within 60 days of signing the purchase agreement.
Beyond purchase tax, the main additional costs are:
DDG provides a detailed cost breakdown for each project before you commit. There is no buyer-side fee payable to DDG.
For new construction in Israel, VAT (currently 17%) is typically embedded in the developer's asking price. Foreign residents who do not have a permanent Israeli address may be eligible for a VAT exemption on new apartment purchases, subject to conditions set by the Israeli Tax Authority. Your Israeli lawyer and DDG's team will clarify whether you qualify for this exemption based on your specific circumstances.
This VAT exemption, where applicable, can represent a meaningful saving on the total purchase cost.
Yes. The main ongoing property-related taxes and charges include:
Note that buyers may also have tax reporting obligations in their home country on foreign property income. Seek local tax advice in your country of residence.
Still unclear on costs? Book a call and we'll walk through the complete cost breakdown for the specific project you're considering.
Book a Free Call →Mortgages for non-residents, payment stage structures, and how to move money to Israel safely.
Yes. Several Israeli banks — including Bank Leumi, Bank Hapoalim, Mizrahi Tefahot, and others — offer mortgage products to foreign residents and non-residents. However, conditions differ from resident mortgages:
DDG works with experienced mortgage brokers familiar with non-resident applications and can make introductions. The mortgage process typically takes 4–8 weeks, so it's advisable to begin early.
Most DDG projects are priced in either USD or NIS. Many contracts with international buyers are denominated in USD, which eliminates NIS currency conversion risk for the buyer. Stage payments are typically made by international wire transfer from your home country bank account.
For NIS-denominated contracts, buyers can convert their home currency to NIS at prevailing rates at each payment stage. DDG can introduce you to specialist foreign exchange providers who typically offer better rates than retail banks.
Payment schedules vary by developer and project, but a typical structure is:
DDG provides the exact payment schedule for each project before you commit. This allows you to plan your cash flow over the construction period.
No Israeli bank account is required to complete the purchase. All stage payments can be made by international wire transfer directly to the developer's designated account (verified by your lawyer). However, some buyers choose to open an Israeli bank account later — particularly those who intend to hold the property for rental income management. DDG can advise on this based on your situation.
Questions about financing your purchase? We'll connect you with specialists who work specifically with international buyers.
Book a Free Call → WhatsAppWhat pre-sale means in Israel, delivery risk, developer due diligence, and what happens at key handover.
"Pre-sale" or "off-plan" means purchasing a unit based on approved plans, specifications, and developer commitments before or during construction. You are not buying a completed apartment — you are reserving a specific unit in a building that will be completed at a future date.
In exchange for this timing risk, buyers typically secure a lower price than the equivalent completed unit would command at delivery. Pre-sale pricing in Israel is historically 10–25% below post-completion market values for well-located projects.
Israeli law protects pre-sale buyers through mandatory payment protection mechanisms (see bank guarantee question above).
Construction delays occur globally and Israel is no exception. Common causes include planning authority delays, contractor scheduling, material supply chain issues, and (in Israel specifically) security-related disruptions. Most Israeli purchase agreements allow developers some contractual buffer (typically 6–18 months beyond the target date) before penalty provisions activate.
DDG mitigates delay risk by:
Your Israeli lawyer will review and negotiate delay penalty terms before you sign.
If a developer enters insolvency or is otherwise unable to complete, the bank guarantee mechanism ensures you can recover all payments made to date. The guaranteeing bank is legally obligated to return your money regardless of the developer's financial position.
In practice, DDG only works with developers who have strong balance sheets, significant completed project portfolios, and institutional backing. Acro Real Estate, for example, is one of Israel's largest and most well-capitalised residential developers. However, no purchase is entirely risk-free, and this should be assessed by your own legal and financial advisors.
Key handover marks the formal transfer of the completed unit from developer to buyer. The process typically involves:
If you cannot be present, DDG can coordinate a local representative to attend the handover inspection on your behalf.
Want to understand the full timeline for a specific project? Book a call and we'll walk through the exact schedule.
Book a Free Call →What DDG does, how the relationship works, fees, and ongoing support after your purchase.
DDG — Deutsch Development Group — is the exclusive international channel partner for each project it represents. For buyers, DDG provides:
DDG's remuneration is paid entirely by the developer — not by the buyer. There is no buyer-side fee or commission charged by DDG for any of its services, from initial consultation through key handover and beyond.
The only fees paid by buyers are:
This structure means DDG's incentive is fully aligned with helping you complete a successful purchase.
DDG is the exclusive international channel partner for the projects it represents, which means DDG has a relationship with the developer. For this reason, DDG recommends that all buyers engage their own independent Israeli lawyer, who owes a duty of care exclusively to the buyer.
Within that structure, DDG provides buyers with accurate project information, transparent cost breakdowns, and honest guidance about which projects suit which buyer profiles. DDG's reputation depends on long-term buyer satisfaction, not on any individual sale, so the team's advice is given with a long-term perspective.
After handover, DDG maintains an active relationship with buyers who want it. Post-purchase support includes:
You remain a DDG client for the lifetime of your asset, not just until you sign the contract.
The easiest first step is to book a 30-minute introductory call with the DDG team. On that call, we'll discuss your goals, budget, preferred locations, and timeline — and recommend which projects in the current portfolio best match your profile. There's no commitment required and no cost to the call.
Alternatively, browse the project pages on this site to get an initial sense of what appeals to you, then reach out via WhatsApp or the contact form. A DDG representative will respond within one business day.
Still have questions not covered here? Book a 30-minute call with the DDG team — no commitment required.
Book a Free Call → WhatsAppImportant note: The information on this page is for general informational purposes only and does not constitute legal, financial, or tax advice. Israeli property law and tax rates change periodically. Always consult a qualified independent Israeli lawyer and, where appropriate, a tax advisor in your country of residence before making any purchase decision. DDG is not a law firm and does not provide legal advice.