Many Jews from France, Russia, Ukraine and the United States buy an apartment in Israel, before aliyah, after it, or as an investment. The deal is similar to any other, but distance, language and tax rules add a few steps worth knowing.
Can you buy without coming to Israel?
Yes. It is common to sign a power of attorney for the lawyer before a notary or Israeli consul abroad, with an apostille where required. The lawyer can carry out the checks, sign and handle registration. Some meetings can be held by video, but some steps require original documents.
What is checked before committing?
The same checks as in any deal: the land registry extract, building permits and violations, debts to authorities and planning status. For new apartments, the security is also checked. See buying a new apartment from a developer.
Purchase tax
A foreign resident buying an apartment is usually treated as buying an additional apartment and pays higher rates. New immigrants may be entitled to a purchase tax reduction for a certain period around aliyah. The conditions have changed in recent years, so check before signing. See purchase tax when buying an apartment.
Money and mortgage
You will need an Israeli bank account and documented transfers to meet anti-money-laundering requirements. Israeli banks lend to foreign residents too, usually at a lower financing ratio. Get an early approval in principle. See buying with a mortgage.
Language
The contract is in Hebrew, but you need to understand every clause. At Paz Israel & Co. Law Office we work with clients in English, French and Russian. If you also have parents in Israel, consider a continuing power of attorney for families abroad.
Where do you go from here?
Every deal and every property is different, and a small detail in a contract or registration can be worth a lot of money. At Paz Israel & Co. Law Office we support buyers, sellers, landlords and property owners, from the first check to registration at the Land Registry. For more information see our real estate lawyer page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal or tax advice or a substitute for reviewing your specific circumstances.