Buying property in Israel from abroad is more common than ever. In episode 345 of the Nadlan BeShidur podcast, I visit Sandra Morali, owner of the French Connection real estate agency in Modi’in, to talk about how to do it right and buy with precision, even from a distance.
The conversation is in Hebrew with English subtitles. If they don’t appear, click CC on the video, or choose English under Settings > Subtitles.
Jews from France, the US, Canada, the UK and Australia are buying apartments in Israel today. Some are preparing for Aliyah, some want a holiday home, and some simply want part of their money invested in Israel. But almost every step of the process here works differently from what they know at home, and that is exactly where buyers get caught out.
Sandra made Aliyah from southern France in 2007 and has worked in Israeli real estate for almost 20 years. Her agents speak several languages, and she chaired the real estate agents’ ethics committee in Modi’in for many years.
In this episode
- Why Jews abroad are buying in Israel right now, despite the security situation
- How French and American buyers think differently
- The myth that every foreign buyer is wealthy and only buys luxury apartments
- How the strong shekel erodes the buying power of anyone arriving with dollars or euros
- Opening an Israeli bank account, transferring funds and proving where the money comes from
- Mortgages for non-residents, purchase tax, capital gains tax and double taxation treaties
- When one agent represents both buyer and seller: can the negotiation still be fair?
What to know before buying from abroad
An Israeli bank account. You can’t buy without one. In most cases you need to come in person, and the bank checks the source of every shekel.
A mortgage of up to about 50%. Foreign residents can finance up to about 50% of the property value, compared with 75% for an Israeli buying a first home. The rest comes from your own equity. More in our guide: Getting a mortgage in Israel as a foreign resident.
Purchase tax. Foreign residents don’t get the reliefs Israelis get on a sole home. Calculate the tax in advance, together with the tax rules of your own country. See: Purchase tax in Israel for foreign residents.
Time. A deal with an overseas buyer doesn’t move at the pace of a regular Israeli deal. Plan for that from the start.
“In a real estate deal you have to be sensitive, but not emotional.”
Sandra Morali, French Connection
Sandra’s advice for buying from a distance
Get a thorough check from professionals who truly specialize, on the legal, financial and commercial side, and who speak your language. Don’t buy a property based on websites, or based on someone making videos. Check, get recommendations, ask people and listen to how they talk.
Think it through first, then act
That is how I work with every client, in Israel or abroad. We start by building a precise investment strategy: your goal, your budget, where you would live if you make Aliyah, and how much equity you can bring. Only then do we search for the property. We buy the property that fits the buyer. We never fit the buyer to the property.
Buying in Israel from abroad? Start with the Fit Profile, or write to me on WhatsApp.