Purchase tax (Mas Rechisha) is usually the largest cost on top of the price. How much you pay depends less on the property and more on who you are: an Israeli resident, a foreign resident, or a new immigrant.
Foreign residents pay the rates for an additional home
If you are not an Israeli tax resident, you don’t get the reduced rates for a single home, even if this is the only property you will own in Israel. You pay the same rates as an Israeli buying an additional apartment.
| Part of the price | Rate |
|---|---|
| Up to ₪6,055,070 | 8% |
| Above ₪6,055,070 | 10% |
Example: on an apartment of ₪3,500,000, a foreign resident pays 8%, which is ₪280,000.
The brackets are frozen until January 2028
Normally the thresholds rise every year with the consumer price index. The government froze them from 16 January 2025 to 15 January 2028, so as prices rise, more of the price falls into the higher brackets.
New immigrants: a reduced rate
An oleh buying a home between one year before aliyah and seven years after it can use a reduced rate, once.
| Part of the price | Rate |
|---|---|
| Up to ₪1,978,745 | 0% |
| ₪1,978,745 to ₪6,055,070 | 0.5% |
| ₪6,055,070 to ₪20,183,565 | 8% |
| Above ₪20,183,565 | 10% |
For purchases after 15 August 2024, the property must be your only residence. If you are planning aliyah, the timing of the purchase can save a significant amount, so it is worth planning before you sign.
Becoming a resident after you buy
A foreign resident who becomes an Israeli resident within two years of the purchase may be able to claim the difference back. Ask your lawyer about this before signing, not after.
When it is paid
Purchase tax is due within 60 days of signing the contract. Your lawyer files the declaration and pays it on your behalf.
General information, not legal or tax advice. Checked September 2026. Your lawyer confirms the figures for your case.
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