Question 1

How much purchase tax (Mas Rechisha) do I pay on a Tel Aviv apartment in 2025?

Accepted Answer

Purchase tax is calculated in brackets. For a primary residence: 0% up to ₪1,978,745; 3.5% on the next portion up to ₪2,347,040; 5% above that. For example, on a ₪3,000,000 apartment as a primary home you'd pay roughly ₪45,500. Investors (additional property) pay 8% from the first shekel.

Question 2

How much down payment do I need for a first home in Israel?

Accepted Answer

The Bank of Israel requires at least 25% equity for a first home (up to 75% LTV financing). On a ₪3,000,000 property that's at least ₪750,000 down. Also budget 3%–5% for closing costs: lawyer, purchase tax, appraiser, property inspection.

Question 3

What are the steps to buy a property in Israel?

Accepted Answer

The process includes: due diligence (land registry, debts, permits), signing a purchase contract with a lawyer, paying a deposit (10–30%), registering a caveat, obtaining a mortgage approval, paying purchase tax within 60 days, paying the balance, and completing title registration in the Tabu.

Question 4

Do I need a lawyer to buy an apartment?

Accepted Answer

Yes, absolutely. A real estate lawyer protects your interests, verifies the property is free of liens and encumbrances, drafts the purchase contract, and ensures the transaction is valid. Fees are typically 0.5%–1% of the property price.

Question 5

What is Capital Gains Tax (Mas Shevach) and when is there an exemption?

Accepted Answer

Capital gains tax is 25% on the real profit from selling a property. The common exemption: selling a single primary residence owned for at least 18 months — full exemption, once every 18 months. Additional exemptions apply for inheritance and special circumstances.

Question 6

How much does a real estate agent cost in Israel?

Accepted Answer

Standard brokerage fees in Israel are 2% + VAT from the party being charged (buyer, seller, or both). On a ₪3,000,000 apartment that's ₪60,000 + VAT. Agents are legally required to have a signed brokerage agreement before taking any action.

Idan HuliIdan LaNadlan

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