Foreign residents, including Jews who plan to make aliyah in future and Israelis who have lived abroad for many years, buy apartments in Israel as an investment. Most of the deal can be handled remotely, provided the documents are prepared correctly from the start.
Power of attorney
So that you do not need to fly in for every signature, you give your lawyer a power of attorney. A power of attorney signed abroad must be authenticated: signed before a notary with an apostille in a country party to the Hague Convention, or signed at an Israeli consulate. It should be detailed and refer to the property and the actions required.
Transferring the money
- Open a bank account in Israel, or transfer directly to the lawyer’s trust account.
- Banks require documents on the source of funds under anti-money-laundering rules. Prepare them in advance.
- When the price is in shekels, the exchange rate affects the cost. Hedging or transferring in stages may be worth considering.
Purchase tax
A foreign resident is generally not entitled to the single-apartment brackets and pays 8% up to about ₪6.06 million and 10% above that (as of 2026). A buyer who becomes an Israeli resident or a new immigrant within the statutory period may receive a refund of the difference. On the benefits for new immigrants see buying property in Israel for foreign residents and olim.
Israel Land Authority land
Most land in Israel is state-owned and managed by the Israel Land Authority. Transferring rights in such land to a foreigner may require the Authority’s approval, with exceptions, including people entitled to immigrate under the Law of Return. This is checked before signing.
After the purchase
- A proper lease, and someone to manage the property for you.
- Paying tax on the rent in Israel, and reporting in your country of residence.
- On sale, a foreign resident can receive the single-apartment exemption from betterment tax only under strict conditions, including confirmation from the tax authority in his country of residence that he owns no apartment there.
Where do you go from here?
At Paz Israel & Co. Law Office we accompany real estate investors in Israel, Israelis buying property in Cyprus and foreign investors buying in Israel: checking the property and the seller, negotiating the contract, accompanying you through registration and coordinating with tax advisers. In Cypriot transactions we work in coordination with a local Cypriot advocate. For more information see our real estate investor services 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. Cypriot law is checked in every transaction with a local advocate.