Investors in Israel & Cyprus
Real estate investors
A real estate investor buys a property to profit from it: from rent, from a rise in value, or both. For the investment to work, the rights, the contract, the taxes and the ability to sell in future must be checked before signing. At Paz Israel & Co. Law Office we accompany three kinds of investors:
- Real estate investors in Israel: an investment apartment, a new apartment from a developer, income-producing property or a joint investment.
- Israelis buying property in Cyprus: checking the property and the developer, the contract and the registration of rights, in coordination with a local Cypriot advocate.
- Foreign investors buying in Israel: foreign residents and new immigrants buying remotely, including power of attorney, transfer of funds and taxes.
Real estate investors in Israel
Purchase tax on an investment apartment is higher. As of 2026 the rate is 8% of the value up to about ₪6.06 million and 10% above that, under a temporary provision in force until the end of 2026. So check in advance whether you qualify for the single-apartment brackets, and if not, include the tax in the yield calculation. Details in our purchase tax guide.
We check the rights at the Land Registry or the Israel Land Authority, permits and building violations, charges and the betterment levy, negotiate the contract and accompany you until the rights are registered. When buying from a developer we also check the security under the Sale Law and the payment schedule, as set out in a lawyer for buyers of new apartments. See also Buying an investment apartment in Israel: what to check.
Israelis investing in property in Cyprus
Cyprus is close, an EU member, and business there is conducted in English, so many Israelis buy investment apartments there. But its property market runs under different law: a non-EU buyer needs a purchase permit, the sale contract is deposited at the Land Registry, and in new projects the land is often mortgaged to the developer’s bank until a separate title deed is issued.
We handle the Israeli side of the deal and work in coordination with a local Cypriot advocate, who is responsible for the checks and registration under Cypriot law. We go through the contract with you, make sure the charges and permits have been checked, that the contract has been deposited and that payments go to the right account, and coordinate reporting to the Israel Tax Authority. See Buying property in Cyprus: a legal guide for Israeli investors.
Foreign investors buying in Israel
A foreign resident can buy an apartment in Israel, but as a rule pays purchase tax as on an additional apartment. On land managed by the Israel Land Authority, approval may be needed to transfer rights to a foreigner. A remote purchase is usually made under a power of attorney signed abroad with an apostille or at a consulate, and the bank will require documents on the source of funds. We accompany the deal from start to registration, so you do not need to attend every stage yourself. See Foreign investor buying an apartment in Israel remotely.
How the process works
- An introductory meeting: your investment goals, budget, financing and tax status.
- Checking the property, the seller or developer, and the registered rights.
- Negotiating the contract and coordinating with the tax adviser, the mortgage adviser and, in Cyprus, the local advocate.
- Signing, payments and registration of rights.
- After the purchase: leases, reporting and, later, the sale.
Guides for real estate investors in Israel and Cyprus
- Buying Property in Cyprus: A Legal Guide for Israeli Investors
- Cyprus Title Deeds, Developer Mortgages and Depositing the Contract
- Cyprus Property Taxes: VAT, Transfer Fees, Rental Tax and Capital Gains
- Israeli Tax on Property Abroad: Rent, Sale and Reporting
- Cyprus Permanent Residency Through Real Estate Investment
- Property in Northern Cyprus: The Legal Risks for Buyers
- Buying an Investment Apartment in Israel: What to Check
- Foreign Investor Buying an Apartment in Israel Remotely
Frequently asked questions
Can an Israeli buy property in Cyprus?
Yes. A buyer who is not a citizen of an EU country needs a purchase permit under the Acquisition of Immovable Property (Aliens) Law, usually granted for one residential property. A holder of an EU passport does not need a permit.
Does the firm also handle the Cypriot side of the deal?
We handle the Israeli side of the deal and work in coordination with a local Cypriot advocate, who is responsible for the checks and registration under Cypriot law.
What is the most important protection when buying a new apartment in Cyprus?
Depositing the sale contract at the Land Registry within six months of signing, and paying into the developer’s loan account at the bank, with the bank’s undertaking to release the apartment once 95% of the price has been paid.
Is tax payable in Israel on an apartment in Cyprus?
Yes. An Israeli resident is taxed on rent and on gains from selling property abroad. Under the regular track a credit is given for tax paid in Cyprus. Israel and Cyprus have no double tax treaty.
How much purchase tax is paid on an investment apartment in Israel?
As of 2026: 8% of the value up to about ₪6.06 million and 10% above that, under a temporary provision in force until the end of 2026.
Can a foreign resident buy an apartment in Israel without coming to Israel?
Yes, through a power of attorney signed abroad with an apostille or at an Israeli consulate. A foreign resident usually pays purchase tax as on an additional apartment.