Found an apartment in Israel at the right price? Now see what it really costs
The contract price is only the start. Purchase tax, broker fee, lawyer, appraisal, registration and notary fees add up to tens or even hundreds of thousands of shekels that the bank does not finance. Enter a price, pick your status and see how much cash you need to prepare 👇
Questions buyers from abroad ask
Do foreign residents pay purchase tax at the higher rate?
Yes. Since 2014 a foreign resident pays the additional-home brackets (8% up to ₪6,055,070 and 10% above) from the first shekel, even for their only property in Israel. If you become an Israeli resident within two years of the purchase you can claim the difference back.
Are foreign residents exempt from VAT on the broker and lawyer?
No. Israeli VAT regulation 12A excludes services concerning property located in Israel from the zero rate for foreign residents. Brokerage and legal fees on an Israeli apartment carry the full 18% VAT for everyone.
When is the purchase tax due?
Within 60 days of signing the contract. Your lawyer files the report and you pay the Tax Authority directly with a payment voucher.
Does the bank finance the extra costs?
No. The mortgage is calculated on the contract price (or the appraised value if lower). Purchase tax, broker, lawyer and registration fees come out of your own equity, which is why you should know them before you commit to a price.
How much can a foreign resident borrow?
Israeli banks lend foreign residents up to 50% of the purchase price. Israeli residents buying an only home can borrow up to 75%, and an additional home up to 50%.
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Why run the numbers before you commit
Most buyers budget for the apartment price alone, then discover at signing that they are a hundred thousand shekels short for tax and professionals. Knowing the cash you need up front lets you negotiate the price with a clear head and build a mortgage that leaves room to breathe. The calculator gives the first picture; the mortgage we build together 🤍