Selling inherited property in Israel from the US: Complete guide

If you’ve recently inherited property in Israel, you may want to sell your new home to a local buyer or foreign investor. The Israeli property market is strong, with lucrative opportunities for sellers and buyers.

Let’s take a look at exactly how to sell inherited property in Israel, including the documents you’ll need, the taxes you’ll pay, and a full step-by-step guide.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

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Table of contents

How do I determine how much my property is worth? What to consider when selling a property in Israel Documents required to sell property in Israel How to sell property in Israel: step by step What’s the best way to send money internationally? Is now a good time to sell property in Israel? How long does it take to sell a property in Israel? Costs of selling property in Israel Selling property in Israel: tax implications

How do I determine how much my property is worth?

Before selling property in Israel, you’ll need to determine your home’s worth.

A number of factors can affect the price of your property, including its location, size, and available amenities.

Work with a property appraiser to set the right price. This will make sure you meet standard market rates — and it will reassure buyers that they’re getting a fair deal.

If you don’t want to pay for a property appraisal, you’ll need to do your own research. Compare your home to others in the area and consult current listings to choose an accurate price for your inherited property.

What to consider when selling a property in Israel

If you’ve recently inherited property in Israel, you’ll need to ensure you follow any regulations for Israeli inheritance.

The Israeli Inheritance Law of 1965 determines exactly how an estate is split up among heirs. You’ll need to officially transfer ownership of your inherited property to confirm you are the legal owner of your new home.¹

Before selling your property, you’ll also need to research the Israeli property market. Make sure to understand the land, zoning, and building rights for your home.

This can help you find suitable buyers and meet any legal or tax requirements for your sale.²

If you’re based in the US, you can sell your property without being physically present in Israel. You may be able to sign your documents at the Israeli consulate or in front of a notary.

You can also use a Power of Attorney to complete your paperwork without traveling to and from Israel.² This is a convenient option for foreign buyers based outside the country.

Should I sell my home myself or work with an agent?

If you’re selling property in Israel, you’ll need to consider whether to sell your home yourself or work with an international or local real estate agent.

Working with an agent can help you find interested buyers, as many agencies will have a list of contacts readily available. Your agent can also help you navigate the nuances of Israel’s property market.

If you’re based in the US, it can help to have someone on the ground. However, real estate agents charge a commission, so it’s important to do your research.

If you think you can effectively market your home, find buyers, and negotiate the best price for your property, doing everything yourself could save money.

Documents required to sell property in Israel

You’ll need a few key documents for your property sale, including the title deed for the property. This is proof that the property has been successfully transferred into your name.

You’ll also need the sales contract or agreement. This is a document that sets out everything you and the buyer have agreed on, including the price for your property and any payment terms.²

Additional documents may include:

• proof of identity — passport or valid government ID
• proof of tax exemptions in the US or Israel
• record of any renovations or changes to the property²

💡 If you want to sign your documents by proxy in the US, you may also need to complete a General Power of Attorney. This ensures you can complete your sale via a notary or the Israeli consulate in the US.²

Speak to your real estate agent or lawyer for more information about the documents you’ll need to sell your inherited property in Israel.

The exact list may depend on the type of property you’re selling, where you’re based, or your tax status in Israel.

How to sell property in Israel: step by step

Here’s a step-by-step guide to selling inherited property in Israel, including everything you’ll need to find a buyer for your home.

Value your property

First, you’ll need to value your property. Work with an appraiser or research local properties to set the right price for your new home.

Your buyer can put in a lower offer, but it’s important to have a solid asking price before going to market.

It tells your buyers how much they should expect to pay — and it puts you in a good position going into any negotiations.

Get your property ready

Next, you’ll need to prepare your property for sale. This could be anything from paying for a professional cleaning to organizing renovations for your home.

You’ll also need to arrange your space for photos and viewings. A real estate agent can help you make your property look as attractive as possible for potential buyers.

This will help you highlight any unique features and ensure you get the best price for your inherited property.

Sort out your marketing

You’ll need to effectively advertise your property to potential buyers. An agent can help you find the right marketing channels for your home.

Here are some tips for marketing your property:

• Invite buyers to look around your home
• Take good-quality photos and videos
• Highlight renovations and attractive features
• Make good use of social media and online listings

You’ll need to understand the target market for your home — do you want to sell to a family or to young professionals? Are you looking for foreign investors or local buyers? This information will inform your promotion.

It’s a good idea to open up your home to possible buyers. This gives investors a chance to get a feel for the property and ask all their questions.

Negotiate the best price

Negotiation is a big part of the property purchase process. Your buyer may offer under the asking price, but you are within your rights to negotiate.

Your negotiation will usually involve discussing the price and terms of your property sale for both you and your buyer.

You may want to work with a lawyer during the negotiation process. This can ensure you get the best price and fair payment terms.

Draft a sales agreement

Once you and your buyer have agreed on a price for your property, you’ll need to draft a sales agreement.

Your lawyers will set out the agreement, including the conditions of your sale and the final purchase price.³ All parties will need to sign the sales agreement.

At this stage, the purchase is also registered with the Land Registration Office in Israel. This demonstrates that the buyer intends to purchase your property.

You’ll need to file certain taxation documents with the Land Tax Authorities within 40 days of signing your agreement.²

Your buyer may want to conduct due diligence before officially closing the sale. This includes completing any relevant inspections and reviewing all paperwork.

Close the sale

Finally, you’ll need to close the sale. Both you and your buyer will sign key documentation and agree to a closing date for the sale.³

Once your buyer has made their final payment for the property, they can take possession of their new home.

Official registration for the property will take place after the local Israeli tax authorities have issued all of the relevant paperwork for your home.²

What’s the best way to send money internationally?

Banks are certainly one option for sending money internationally, as are services like PayPal. But the problem with banks is they can often be slow, expensive and inconvenient. Luckily, there’s a better alternative out there.

You can send money worldwide with Wise for low fees and the mid-market exchange rate. It’s easy and quick to set up a payment online, and you’re guaranteed secure transfers even when sending large sums.

Wise is a money service business (MSB) regulated by 12 international financial authorities and uses sophisticated security features to keep you and your money safe.

Open a Wise account, and you can send, spend and convert between 40+ currencies whenever you need to. You can even receive money from all over the world using your own local account details.

As if all that wasn’t enough, there’s a Wise Multi-Currency Card too. For a one-time fee of just $9, you can spend in over 150 countries in the local currency. Your USD is automatically converted at the mid-market rate for just a small conversion fee.

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Is now a good time to sell property in Israel?

Israel’s property market is strong, with regular demand, new opportunities, and a growing population that makes it relatively flexible for sellers.

In the past few years, Israel’s property market has experienced rapid growth. However, that is starting to slow a little in 2025.

Home prices in some locations have dipped, and it’s important to consider the geopolitical situation in the Middle East.⁴

This may affect the economic climate and real estate market for sellers and buyers in Israel. Speak to a real estate agent in Israel for more information.

How long does it take to sell a property in Israel?

The amount of time it takes to sell your property will depend on how long it takes to get a buyer. Some locations and house types are more in demand than others.

For example, houses and apartments in big cities like Tel Aviv or Jerusalem are very popular. These locations offer competitive real estate markets and high property prices for sellers.⁵

If you need to negotiate your price or complete any additional paperwork for your sale, it may take longer than expected.

The full selling process will likely take several months to complete. Speak to your real estate agent for an up-to-date timeline.

Costs of selling property in Israel

There are a few costs to consider before selling your inherited Israeli property.

You may pay real estate commission to your agent in exchange for selling your home. This typically works out to 2% of the transaction plus VAT, depending on your agency.⁶

You may also need to think about:

• legal fees
• additional taxes
• zoning or building charges
• translation or interpretation fees

If you want to sell property in Israel, you’ll need to consider currency exchange costs. Most US banks will add a markup to the standard exchange rate for New Israeli sheqel (ILS) transfers in and out of your bank account.

You’ll likely receive the money for your property sale in ILS. Your bank will automatically convert the payment into US dollars, which means you could lose out on currency conversion charges.

Use a money transfer platform like Wise to receive your money in ILS at the mid-market exchange rate. This is the fair rate for currency conversion — no markups or hidden fees!

Selling property in Israel: tax implications

There are some tax implications for selling inherited property in Israel. Let’s take a closer look.

Capital gains tax

You’ll likely pay capital gains tax for selling your property. When you sell your property, you’ll need to report it to the relevant tax authorities in Israel.

The standard capital gains tax rate in Israel is 25%, but rates can vary.³ In some cases, you may be able to apply for an exemption. However, foreigners rarely qualify, even if they have citizenship in Israel.⁷

You’ll also pay capital gains tax in the US. For inherited property, your new home will receive a fair market value on the date that the owner passed away or transferred the property to you.

This amount will be converted into US dollars — you’ll pay capital gains tax on any income you receive over that price.⁸

Betterment tax

You may also need to pay betterment tax for selling property in Israel. This applies if there has been a change in zoning laws to give your property additional building rights.

If these new rights improve your property’s prospects on the market, you’ll pay betterment tax. Known as hetel hashbacha, the tax is charged as a one-time fee.

Betterment tax is typically 50% of the rise in value of the property as a result of the improvements.⁹

Do you pay tax on inheritance in Israel?

In many countries, you’ll pay a tax to the government on any assets you inherit. However, you won’t pay inheritance tax in Israel.

Israel’s inheritance tax regulations make it a good place to inherit new property. You can transfer ownership of your home to sell it or rent it out to tenants.

You won’t pay any taxes on the property you inherit, but other taxes, like capital gains, will still apply.¹⁰

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Selling inherited property in Israel can be a complicated and expensive process for US citizens.

You’ll need to complete all the necessary checks and processes for your sale. You’ll also need to look into any fees and taxes, such as capital gains tax, legal fees, and exchange rate costs.

To send, spend, and receive your money across the globe — all at the fair mid-market exchange rate — check out Wise.

Sources

1. Eshimony Law - Inheriting real estate in Israel
2. Anglo List - The process of buying and selling real estate in Israel
3. Expat Focus - Israel - Selling property
4. Semerenko Group - Israel real estate market in early 2025: Key developments and trends
5. Expat Focus - Israel - Selling property
6. Buy it in Israel - Understanding the real estate agent’s commission agreement
7. Levin Law Offices - Selling your property in Israel
8. H&R Block - US capital gains tax on selling property abroad
9. Levin Law Offices - 6 critical questions to ask when selling an apartment in Israel
10. Eshimony Law - Inheritance laws in Israel: A comprehensive guide

Sources checked 05/30/2025