Buying property in Israel as a UK foreigner
| Disclaimer: The information in this article is for reference purposes only. All information on this page should not be considered financial or tax advice. You are solely responsible for calculating and paying your tax liabilities depending on the applicable law. All tax saving strategies or decisions should be made after thorough research and consultation with a qualified financial advisor. |
|---|
Buying a property in Israel is an attractive option for many UK residents thanks to the country’s strong economy, stable legal system and cultural ties. However, it isn’t the same as buying in the UK.
Higher purchase taxes, strict mortgage limits for non-residents, complex land ownership rules and the challenge of dealing with international money transfers all require careful planning.
In this guide, we’ll run through everything you need to know about buying property in Israel as a UK foreigner. This includes mortgage options, taxes and fees, property prices, the buying process and common pitfalls to avoid.
We’ll also introduce a reliable and cost-effective way to send and receive large sums internationally from the money services provider Wise.
With low, transparent fees*, great mid-market exchange rates, and secure, trackable transfers, Wise makes international money transfers simple and stress-free. Plus, you’ll get dedicated support and volume discounts when sending large amounts.
Get expert support for large transfers 📞
Can you get a mortgage from an Israeli bank as a non-resident?
Yes, UK citizens can get a mortgage from an Israeli bank, but the conditions are stricter for non-residents than for Israeli residents. This is because Israeli banks can be cautious about lending to overseas buyers as a result of enforcement risks and currency exposure.
Most Israeli banks offer non-resident mortgages under the following conditions:
- Maximum 50% loan-to-value (LTV)¹
- Minimum 50% cash deposit¹
- Proof of income from the UK (payslips, tax returns or company accounts)
- Clean credit history
- Property valuation by an Israeli-approved surveyor
Mortgages are typically issued in Israeli shekels (ILS) but some banks offer foreign-currency-linked loans - however these do expose borrowers to exchange rate fluctuations.¹
Interest rates for non-residents can be higher than for Israeli residents, again reflecting the increased risk.¹ Banks also assess affordability conservatively, often discounting overseas income or requiring higher income thresholds.
The mortgage approval timeline in Israel can be lengthy.¹ Banks often require additional verification for non-residents including certified translations, apostilles and notarised documents - most of which must be submitted in Hebrew.
Another factor to consider is the mortgage repayment structure.² Israeli mortgages are often split into multiple loans, some of which are linked to the Israeli Consumer Price Index. This means your repayments could rise with inflation. Therefore, understanding how these work is essential as the structure you choose can affect long-term costs.
This is where a specialist mortgage broker can come in handy to:
- Identify banks that lend to UK buyers
- Structure the mortgage to minimise currency risk
- Assist with notarised and translated documents
- Coordinate valuations and approvals remotely.
Taxes and fees for owning property in Israel
Buying property in Israel involves substantial upfront costs.
UK buyers should budget 10% to 12% of the purchase price in addition to the property value.³
Here are the main fees and taxes you need to know about:³
| Tax or fee name | Rate or fee |
|---|---|
| Purchase tax (Mas Rechisha) | 8% to 10% (non-residents) |
| VAT (Ma’am) | 18% (new builds only) |
| Mortgage valuation fee | 2,500 to 5,000 shekels |
| Land registry fees | Variable |
| Notary fees | Variable |
| Broker or agent fees | 0.5% to 1.5% plus VAT |
| Translation costs | 1,000 to 3,000 shekels |
Purchase tax (Mas Rechisha)
Mas Rechisha is the most significant cost for foreign buyers. For non-residents, it usually starts at around 8% and increases with property value. The tax must be paid within 60 days of signing the purchase contract and late payments can result in penalties.⁴
Ongoing property taxes
Once you own property in Israel, you’ll need to budget for:
- *Arnona *(ארנונה) – municipal property tax⁵
- Maintenance fees for apartment buildings⁶
- Income tax if you rent the property out⁷
Arnona is calculated on the size, location and use of the property rather than its market value. Rates vary by municipality and cities such as Tel Aviv and Jerusalem have higher charges. It’s usually billed every two months and must be paid even if the property is vacant.
If you own an apartment in a shared building, you’ll also be responsible for monthly maintenance fees to cover cleaning, lifts, lighting and general upkeep of communal areas. Again, costs can vary depending on the building and its amenities.
Finally, non-resident owners who rent out their Israeli property may also be subject to Israeli income tax on rental earnings. The country offers several tax tracks, including a simplified flat-rate option or progressive taxation but eligibility depends on income level and property type.
In these instances, it can be beneficial for UK buyers to seek professional advice to truly understand how Israeli rental income interacts with UK tax obligations under the UK-Israel double taxation treaty.
| Read more: Cost of Living in Israel |
|---|
What’s the property market like in Israel?
While the global property market is always evolving, Israel’s property market is characterised by high demand and limited land supply thanks to population growth, urbanisation and planning restrictions. This can all have a direct impact on price growth.
Can foreigners buy property in Israel?
Yes, UK foreigners can legally buy property in Israel. However, much of the land is administered by the Israel Land Authority (רשות מקרקעי ישראל). This means that properties on this land are sold as long-term leases rather than outright freehold ownership.⁸
Can you buy property in Israel and get residency?
Buying property in Israel doesn’t automatically grant residency or citizenship.⁹ Instead, residency routes are separate and may include employment visas, family reunification and retirement visas. Jewish buyers may qualify under the Law of Return (חוק השבות), but this is unrelated to property ownership.
How much are the property prices in Israel?
Property prices vary by location but as of early 2026, the average residential property price sits at around 2.3 million shekels, which is around £540,000 GBP depending on exchange rates.¹⁰
Looking at price per square meter, Israeli properties average around 26,000 shekels, which is around £6,100 per sqm GBP - although this varies between cities.¹⁰
Where is the cheapest place to buy property in Israel?
Again, this can evolve as demand and amenities change but current affordable areas include:
- Haifa
- Be’er Sheva
- Northern and southern peripheral towns
- Older developments outside city centres
UK buyers should understand that while these areas may offer lower entry prices it does mean they can have weaker rental demand.
Buying property in Israel as a foreigner - a step-by-step guide
- Set your budget
Before you start looking for properties, you need to know exactly what you can afford. What’s more, your budget should include the property purchase price, the deposit, taxes and fees and any currency exchange costs.
- Appoint an Israeli lawyer
Hiring a local lawyer will help you to verify ownership rights, checks for debts, liens or zoning issues and review contracts written in Hebrew. The purchase contract (חוזה מכר) is legally binding once signed so it’s important you fully understand it.
- Find a suitable property
Properties are often listed in Hebrew, and desirable homes can sell quickly. Many UK buyers rely on local agents or property finders to help them maximise their search.
- Make an offer and sign contracts
Once an offer is accepted, you’ll typically:
- Sign the contract
- Pay a deposit
- Set a completion timeline
- Pay purchase tax
Mas Rechisha must be paid whenever a property changes hands. If not, you’re at risk of interest and penalties.⁴
- Final payment and registration
After the final payment, ownership is registered with the Land Registry (טאבו).
How can you find a property in Israel?
Many UK buyers find it useful to consult local property experts either via an agency or online property portal.
Property agencies and agents in Israel
- Anglo Saxon
- RE/MAX Israel
- Keller Williams Israel
- Home in Israel
Property websites in Israel
- Yad2
- Madlan
- WinWin
- HomeLess
What are some of the pitfalls of buying property in Israel?
While purchasing a property in Israel does come with several benefits, it’s important to understand where any potential issues may arise from. This includes:
- Properties not registered in the Tabu
- Outstanding debts attached to the property
- Verbal agreements not reflected in contracts
- Exchange rate volatility
- Overpaying in high-demand markets
Another common pitfall for UK buyers is underestimating the importance of planning and zoning checks.
A property might seem a good fit but it could be affected by future development that could impact value or living standards. Your lawyer should check local planning documents with the municipality (ועדה מקומית לתכנון ובנייה) before you commit.
Foreign buyers should also be cautious when purchasing properties that are part of urban renewal schemes, such as those under TAMA 38 (תמ״א 38) or evacuation–rebuild projects (פינוי-בינוי). While these schemes can increase long-term value, they also carry construction delays and legal disputes.
It can also be easy to overlook exit costs. Selling property in Israel can trigger capital gains tax (Mas Shevach – מס שבח), and non-residents may face higher withholding requirements at the point of sale.
| Read more: Moving abroad from the UK: Complete guide |
|---|
How do you choose the right property in Israel?
Buying a property, anywhere in the world, is a huge decision - and shouldn’t be made lightly. Below, we list some of the essential factors to consider.
Condition of the property
Will the property require expensive work? Do you have the funds and time associated with any renovations? Older buildings may require seismic reinforcement under TAMA 38 (תמ״א 38) regulations.
Type of property
Houses are rare and expensive in Israel, which makes apartments the more common choice. However, remember, these will come with additional maintenance costs that need to be added into your ongoing budget.
Moving in
Furnishing standards, appliance inclusion and parking rights are just a few of the areas that will affect day-to-day living so make sure you understand fully what’s required before moving abroad.
Insurance
Home insurance (ביטוח דירה) is strongly recommended and often required for mortgages.
Setting up utilities and bills in Israel
Utilities include:
- Electricity (חברת החשמל)
- Water
- Gas
- Arnona municipal tax
Not only will these need to be set up in advance but they often need paying in local currency which means you’ll need an account with the capability to do this.
Finally, UK buyers who are looking to rent out their property should consider how easy the property will be to manage remotely.
If you don’t plan to live in Israel full time, features such as professional building management, secure access systems, and reliable maintenance services can make ownership far simpler from abroad.
Renovating property in Israel
UK buyers can renovate a property in Israel but work can be expensive due to labour shortages and strict regulation. Building permits (היתר בנייה) may also be required for structural changes.
Therefore, it’s important to understand the associated costs and timeline before purchasing a property in need of improvement.
Save on currency conversion fees with Wise when buying property in Israel
After reading this guide, you should have all the essential info you need to start your property search in Israel. This includes those crucial first steps such as finding a broker and searching online property portals, and getting your finances in order.
Need a secure, convenient and low-cost way to send large sums of money internationally? Take a look at the Wise account from the money services provider Wise. It's not a bank account but offers some similar features and your money is safeguarded.
With Wise, you can send large amount transfers worldwide to 140+ countries for low, transparent fees and the mid-market exchange rates with no markup.
| Here’s an overview of the main benefits of using Wise: |
|---|
|
**Investments in funds are never guaranteed and your capital can be at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.
Additional FAQs about buying property in Israel
Is buying property in Israel a good investment?
It can be, but high taxes and entry costs can affect short-term returns.
Do I need to be in Israel to buy property?
No. Many purchases are completed remotely using a power of attorney.
Can I rent out my Israeli property?
Yes, subject to Israeli tax reporting requirements.
Sources used:
- Ronkin Real Estate - Israeli Mortgages
- But It In Israel - Mortgage Tracks
- Sands Of Wealth - Property Taxes
- Buy It In Israel - Purchase Tax
- Semerenko Group - Maintenance Fees
- Buy It In Israel - Additional Property Costs
- Buy It In Israel - Income and Rental Tax
- Gov.IL - Land Registry
- Sands Of Wealth - Foreign Property Ownership
- Sands Of Wealth - Property Price Forecasts
Sources last checked on date: 27-Jan-2026
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
