Purchase tax (Mas Rechisha) is generally payable by the purchaser of Israeli real estate. For a foreign buyer or overseas purchaser, the amount can materially affect the total cost of buying property in Israel. Residency status, the type of property and possible Aliyah-related rules should therefore be examined before the purchase agreement is signed.
Foreign Residents and Residential Property
A foreign resident who owns no other apartment in Israel does not automatically receive the purchase-tax treatment available to a qualifying Israeli resident purchasing a single apartment. The buyer’s residency status and the particular statutory rules therefore matter.
2026 Rates for a Residential Apartment That Is Not a “Single Apartment”
For the relevant 2026 regime, the tax is generally 8% on the part of the purchase price up to NIS 6,055,070 and 10% on the part above that amount. These figures should always be checked against the law and the Israel Tax Authority position applicable on the transaction date.
Residency, Aliyah and Returning Residents
The result can change where the purchaser qualifies as an Israeli resident for the relevant provisions or is entitled to a specific benefit as an oleh. Timing can be important. A person who becomes an Israeli resident for the first time, or a qualifying veteran returning resident, may in certain circumstances be treated as a resident for the relevant single-apartment provisions if the statutory requirements are met.
There are also specific purchase-tax benefits for qualifying olim. The applicable route and conditions should be checked individually rather than assumed from a headline rate.
Buying Land Is Different
The purchase-tax rules for land and other real estate rights are different from the residential-apartment brackets. The legal nature of the right being acquired should therefore be identified before calculating the tax. See Land & Property Rights in Israel →
Reporting the Purchase
Israeli real estate transactions are subject to statutory reporting requirements and deadlines. As a general rule, the transaction is reported within 30 days, although the exact filing obligations and supporting documents should be coordinated for the particular transaction.
The Important Question Is Not Only “What Is the Rate?”
The more useful question is: which purchase-tax regime applies to me? Residency, the type of property, existing rights and the buyer’s circumstances can change the answer.
As part of my real estate representation, I address the Israeli real estate tax aspects of the proposed transaction before the client becomes contractually committed.
Frequently Asked Questions
Do foreign buyers pay purchase tax in Israel?
Yes. A foreign buyer acquiring Israeli real estate is generally subject to purchase tax. The applicable rate depends on the property and the purchaser’s circumstances, including residency status.
What is Mas Rechisha?
Mas Rechisha is the Hebrew term for Israeli purchase tax. It is a tax paid by the purchaser when acquiring rights in Israeli real estate.
Do I receive the single-apartment rates if I live abroad?
Not automatically. A foreign resident who owns no other apartment in Israel does not, for that reason alone, necessarily qualify for the preferential single-apartment rates. The statutory residency requirements must be examined.
What if I plan to make Aliyah?
Timing can matter. The law contains provisions that may be relevant to a person who becomes an Israeli resident after the purchase, and there are also specific rules for qualifying olim. The appropriate route should be checked before signing.
Does owning property outside Israel affect the calculation?
The answer should not be reduced to whether the buyer owns property abroad. Residency status, the nature of the Israeli property and the particular tax provision being relied upon all need to be considered.
Related Guidance
Buying Property in Israel – Practical Legal Guide for Overseas Buyers →
Israeli Real Estate Tax & Transaction Costs →
Discuss Your Purchase With Amnon Buying Property in Israel
Editorial review: Time-sensitive tax information is checked against current Israeli legal and tax sources before publication. This page is reviewed when substantive changes are made.
This guide provides a general framework only. The legal and tax position can change significantly depending on the property, the parties and the circumstances of the transaction.