The costs, one by one
Sometimes set according to the complexity of the deal, as a share of the property’s value. Do not compromise on professionalism and real estate expertise.
The accepted market standard, as a share of the deal price. You can find cheaper agents — but every agent has many clients who could suit the same property. To be the first to hear about offers and get priority, agree the professional’s fee in full.
Depends on the mortgage amount and the complexity of the file. Their job is to build the best mix for you and secure the best interest rates. We recommend an independent (non-bank) adviser.
If you are taking a mortgage, the bank will ask for a valuation of the property being bought.
For a basic move.
This is where the big gaps are: from a coat of paint at around ₪4,000, through a serious renovation that can easily reach around ₪100,000 in a home worth ₪1,500,000, to well beyond ₪500,000 for renovating a house.
A lawyer for registering the condominium, plus surveys, utility connections and air conditioning, which the developer sometimes does not provide. In most cases buyers also upgrade the developer’s standard specification and kitchen.
The levy customarily falls on the seller rather than the buyer, though it is a commercial matter — in rare deals the buyer takes on some or all of it.
Mortgage — how much you can borrow
The Bank of Israel caps the mortgage a bank can lend: up to 75% of the property’s value for a buyer of an only home, and up to 50% for buyers of an additional home. The mortgage mix and the interest rates are negotiable.
Purchase tax
The brackets below apply from 16.1.2024, and their annual update is frozen until 15.1.2028.They are normally updated once a year, on 16 January, in line with the index. To calculate by the value of your home we have a purchase tax calculator; the binding amount is set by the Israel Tax Authority calculator.
An only home
| Portion of the value | Tax rate |
|---|---|
| Up to ₪1,978,745 | No tax |
| ₪1,978,745 – ₪2,347,040 | 3.5% |
| ₪2,347,040 – ₪6,055,070 | 5% |
| ₪6,055,070 – ₪20,183,565 | 8% |
| Above ₪20,183,565 | 10% |
Example: buying an only home for ₪2,200,000 — no tax is paid on the portion Up to ₪1,978,745, 3.5% is paid on the portion ₪1,978,745 – ₪2,200,000 (₪7,744). Total ₪7,744.
An additional home (not an only home)
| Portion of the value | Tax rate |
|---|---|
| Up to ₪6,055,070 | 8% |
| Above ₪6,055,070 | 10% |
Example: buying an additional home for ₪6,500,000 — 8% is paid on the portion Up to ₪6,055,070 (₪484,406), 10% is paid on the portion ₪6,055,070 – ₪6,500,000 (₪44,493). Total ₪528,899.
Note: purchase tax is worth taking advice on — it is possible to hold more than one home at the same time and still enjoy the reduced brackets of an only home.
In summary
Moving into your new home brings unavoidable costs on top of the price of the property. Proper financial planning and a detailed calculation of the costs are strongly recommended, to avoid heavy and unexpected expenses.
If you are also selling a property before you buy, read about the costs of selling.
This is a guide, not advice. On anything to do with costs and taxation, consult the relevant professionals. The rates and amounts here are accepted market ranges, not a quote.
