Purchasing real estate in Israel for foreign residents - full legal support

The Eldar Adato Law Firm specializes in real estate and urban renewal and has over 28 years of experience in the field.

The firm's activity in the fields of urban renewal and real estate has in recent years been recognized and appreciated by rating guides (Dun & Bradstreet, BDI, The Marker newspaper, Globes and the Urban Renewal Index) who rank the firm of Elder Adato Law Firm as the leading firm in Israel in the field of urban renewal.

The team of lawyers at the firm is led by Attorney Eldar Adeto, who has over 20 years of legal knowledge and experience in the field of real estate. Attorney Eldar Adeto, a graduate of law studies at the University of London, is considered an expert in the field of real estate, planning and construction law, and real estate taxation. He is a renowned expert in the field of urban renewal, a consultant and lecturer at various forums, hosts the "Real Estate Experts" program on Channel I24 (Channel 15) and previously hosted the programs "Real Estate Secrets" and "Real Estate Time" on Channels 12 and 13.

Real Estate Acquisition in Israel for Foreign Residents — Full Legal Support

Adato Law Firm specializes in representing foreign residents in the purchase of real estate in Israel. We provide comprehensive and professional legal support — from locating the property and assessing potential risks, through negotiation and drafting of agreements, and all the way to registration and handling all interactions with the authorities — with a deep understanding of the unique challenges faced by buyers who do not reside in Israel.

Unique Challenges for Foreign Residents

Why is purchasing real estate in Israel from abroad more complex?

Buying property in Israel while living overseas presents challenges that local buyers typically do not encounter: managing the process remotely without being able to attend every stage, navigating an unfamiliar language and legal system, complex tax rules including higher purchase tax for foreign residents, banking and regulatory requirements for transferring funds from abroad, powers of attorney, and handling the entire process without the buyer being physically present.
Adato Law Firm is deeply familiar with all these issues — and provides clients with a safe, transparent, and well‑managed process, even from afar.

Our Services

What does our legal support include?

Comprehensive Due Diligence

Before any purchase, we conduct a full due‑diligence review of the property: verification of title registration in the Land Registry, identification of liens or encumbrances, review of planning status and building permits, municipal debts, potential building violations, and any other relevant risk factors — and we report all findings to the client with full transparency before any decision is made.

Negotiation and Contract Drafting

We conduct the negotiations with the seller and their attorney, ensuring that all terms of the transaction — price, payment schedule, delivery date, and conditions precedent — fully protect the client’s interests. The agreement is drafted in a detailed and protective manner, with clear explanations of every significant clause.

Power of Attorney & Remote Management

A foreign resident cannot be physically present at every stage — and there is no need to be. We prepare the appropriate power of attorney enabling us to act on the client’s behalf with all relevant entities: banks, tax authorities, the Land Registry, and local municipalities. The client receives ongoing updates at every stage and remains fully in control — even from abroad.

Tax Considerations for Foreign Residents

Purchasing real estate in Israel as a foreign resident involves unique tax implications: higher purchase tax, capital gains tax considerations upon future sale, reporting obligations to the Israeli Tax Authority, and international tax aspects. We provide the client with a full tax overview before signing — and work to minimize tax liability within the framework of the law.

Funds Transfer & Banking Requirements

Transferring funds from abroad for the purpose of purchasing real estate in Israel involves regulatory requirements imposed by banks and financial enforcement authorities. We guide the client through the process and ensure that all transfers are carried out properly, documented, and approved — without unnecessary delays in closing the deal.

Registration of Rights

Closing the deal does not end with signing the contract. We handle the full registration of the property rights in the client’s name at the Land Registry — ensuring that the property is properly registered without delays or bureaucratic issues.

Our Clients

We represent foreign residents from a wide range of backgrounds and countries — Jewish diaspora families considering purchasing a home in Israel, investors from the U.S., U.K., France, Canada, and Australia seeking investment properties, and families wishing to purchase a home for relatives living in Israel. Each client receives tailored support, in their language and according to the standards they are accustomed to.

Frequently Asked Questions

Can a foreign resident purchase real estate in Israel?

Yes. There is no legal restriction on foreign residents — including non‑citizens — purchasing real estate in Israel. However, there are unique tax implications and regulatory requirements that should be understood in advance.

How much purchase tax does a foreign resident pay?

A foreign resident who is not eligible for the reduced tax rate applicable to Israeli residents purchasing a single home pays higher purchase tax. The exact rate depends on the property price and the buyer’s personal circumstances. Early consultation allows for proper planning and sometimes significant savings.

Can the entire process be handled remotely?

Yes. With an appropriate power of attorney and proper coordination, the entire purchase process — from negotiation to registration — can be handled without the buyer physically coming to Israel. We represent clients worldwide and ensure full transparency at every stage.

What is the difference between buying a new property from a developer and buying a second‑hand property?

Purchasing from a developer typically involves a standard contract with less room for negotiation, but includes statutory guarantees. Purchasing a second‑hand property allows for more negotiation flexibility but requires more extensive due diligence. In both cases, professional legal representation is essential.

What happens if I want to sell the property in the future?

Selling property in Israel as a foreign resident involves capital gains tax on the real profit from the sale. Certain exemptions and reductions may apply. Early tax planning — even at the purchase stage — allows for optimal long‑term planning.

Interested in purchasing property in Israel? We’re here to help.

We represent buyers from around the world and provide full, professional, and transparent legal support — from the first meeting to final registration.