A practical guide: what you can do abroad and what must be done in Israel
Buying property in Israel as a non-resident is absolutely possible. Many of my clients successfully purchase homes without ever setting foot in the country during the process. The key is knowing which steps can be handled remotely and which steps require local action in Israel.
This guide outlines the typical timeline for a purchase, what you can expect, and how a properly prepared Power of Attorney enables you to complete much of the process from abroad.
Can Non-Residents Buy Real Estate in Israel?
Yes. Israel places no general prohibition on foreign nationals buying real estate. Most urban homes are either:
- Freehold registered in the Land Registry (Tabu)
- Long-term leasehold managed by the Israel Land Authority (ILA) and also registered in the Land Registry or with the construction company
Your lawyer will check whether the property is freehold, leasehold, or company-registered. This determines the exact forms, approvals, and timelines.
Step 1: Engage a Lawyer and Prepare Your Documents (Abroad)
The first step is hiring an experienced Israeli real estate lawyer who will guide the entire process.
- Power of Attorney (POA): Non-residents usually sign a notarized or consular POA abroad (with an Apostille if notarized). This empowers your lawyer to sign the contract, file tax declarations, and register the property for you.
- Bank readiness: Israeli banks require detailed “know your customer” (KYC) and anti-money-laundering documentation. Begin this early to avoid delays.
- Purchase tax planning: Non-residents generally pay the “investor” rate: 8% on part of the price and 10% above the threshold (updated annually). Your lawyer will file the declaration (Form 7000) within 30 days of signing.
Step 2: Property Selection and Due Diligence (Abroad or in Israel)
You may search listings online and even take virtual tours, but most buyers still prefer a visit to Israel before committing.
Your lawyer will:
- Order a fresh Land Registry extract (נסח טאבו) or ILA/company rights certificate
- Check liens, cautions, mortgages, and planning approvals
- Verify that the seller has the necessary tax clearances and authority approvals
Step 3: Negotiating and Signing the Contract
Once the terms are agreed:
- Contracts can be signed in Israel or abroad via POA
- Your lawyer ensures the agreement protects your interests, translates it if needed, and oversees escrow
- Immediately after signing, the purchase/sale declaration must be filed with the Israel Tax Authority within 30 days
Step 4: Payments and Financing
Payments in Israel are typically made in installments:
- A deposit on signing
- Additional installments during the process
- The balance at completion
Non-resident transfers must comply with strict bank compliance rules. If financing, note that Israeli mortgage banks usually cap non-resident loans at around 50% of the property value.
Step 5: Completion and Registration
On the completion date:
- The seller delivers original signed documents
- The buyer’s lawyer transfers funds and confirms bank undertakings
- Keys are handed over
Your lawyer then submits the registration request to the Land Registry (Tabu) or the Israel Land Authority (ILA), or a construction company. Registration is completed once all tax clearances and approvals are in place.
Typical Timeline for a Non-Resident Purchase
| Step | Duration |
| Hiring lawyer, preparing POA abroad | 1–3 weeks |
| Property search and due diligence | 2–6 weeks |
| Contract negotiation and signing | 1–3 weeks |
| Payments, financing, bank approvals | 2–8 weeks |
| Registration in Land Registry (Tabu) | 1–3 days |
| Total range | 4–8 months |
What Can Be Done Abroad
- Engaging a lawyer
- Signing a POA (notarized/apostilled or at an Israeli consulate)
- Bank onboarding and source-of-funds documentation
- Mortgage pre-approval (depending on bank policy)
- Signing the contract via POA
What Must Be Handled in Israel
- Filing and collecting original documents with the registry and tax authority (done by your lawyer)
- Any in-person bank steps required by a particular institution
- Final registration in the Land Registry or ILA (done by your lawyer)
Conclusion
With the right preparation, buying real estate in Israel as a non-resident is not only possible but also straightforward. Most of the process can be handled from abroad, provided you have a lawyer authorized to act on your behalf.
If you are considering purchasing property in Israel, I would be happy to guide you through each stage and ensure a smooth, secure transaction.
Contact me today to start your property purchase in Israel.
