When purchasing a new apartment under construction, there are additional expenses, beyond the purchase price:

Legal fees

Legal fees of the purchaser’s lawyer – Depending on the extent of work done, this can be from 0.5% – 2% of the price of the apartment, plus V.A.T (Value Added Tax – this is 17% of the fee in question). The legal fees of the company are paid by the purchaser. This used to be be between 1%-2% of the price plus V.A.T.  Now it is 5000 NIS plus V.A.T.

Real Estate Agents Fees

These fees are usually paid by the construction company, however if you hired an agent to show you around various projects, the agent will charge you a fee for this.

Purchase tax

This is calculated on a sliding scale based on the price of the apartment. This scale is updated every year. Olim are granted a partial exemption from purchase tax. Please click here for the latest purchase tax scales.

Money Conversion Costs

Although prices are usually quoted in U.S.dollars, the payments are made in Shekels. This means that if you are using dollars to pay for your apartment, this money must be converted to Shekels. The banks in Israel charge commissions for receiving foreign currency into an account and for converting the money to Shekels. In addition, they buy your dollars at a lower rate of exchange than the representative rate of exchange.The representative rate of exchange is the rate of exchange that is published every day (except Saturday and Sunday) by the Bank of Israel. The payments of the price are paid in Shekels according to the representative rate of exchange and not the rate at which the bank buys your dollars. You therefore need to send extra money to cover this difference and to cover the bank commissions for converting the money. You should ask your attorney to negotiate better commissions for you with the bank.

Mortgage costs

The mortgage bank charges a fee for opening up a file. This fee can be negotiated with the bank manager. In addition, there are the following fees:


Usually the bank does not require an assessor for mortgages for apartments under construction, but occasionally they do. This will cost about $600

Notarial fees

The banks require a notarized power of attorney. This can cost between 196 and 274 NIS.

Registration of pledge

a pledge must be registered in the banks favor and this costs 190  NIS.

Mortgage Broker

To help you get a mortgage at the best terms it is advisable to hire a mortgage broker. Their fees are usually about 1.5% of the amount of the mortgage plus V.A.T. Some mortgage brokers take a flat fee.

Deposit for gas

You have to pay the gas company for a new hookup to the gas line. This can cost between 1500 to 2000 NIS.

Should you wish to have the apartment checked out by an engineer before taking possession, the usual fee is $500 plus V.A.T for a written report and $250 plus V.A.T. for a verbal report.

Should you wish to upgrade or make changes or upgrades to the basic apartment offered by the construction company, the company will charge you an additional fee for this. You are recommended to consult with an interior designer about these changes. Working with an interior designer will also mean additional fees.