Buying in Israel: The 8 Steps of the Purchase Process

Define your criteria (location, size, budget, purpose) and begin searching on specialized portals. Get a mortgage pre-approval to know your exact budget. Visit properties in person if possible, or use video tours. Factor in all additional costs: purchase tax (8-10% for foreign buyers), lawyer fees (0.5-1.5%), mortgage costs, and renovation budget.

Make a written offer through your lawyer. Once accepted, your lawyer conducts due diligence: checking the Tabu registration, verifying no liens or encumbrances, confirming building permits, reviewing the property's legal status. This step is critical and should never be skipped, even for new developments.

Both lawyers negotiate and sign the purchase contract (Chozeh). You pay a deposit (typically 10-20%) into escrow. Finalize your mortgage with the bank. Purchase tax declaration is filed with the Tax Authority within 30 days. Set up payments according to the contract schedule (typically 3-4 installments).

After full payment is confirmed, the seller's lawyer provides all documents for transfer. Your lawyer registers the property in your name at the Tabu. You receive the keys and take possession. Register with the municipality for Arnona, and with utility companies (electricity, water, gas). Congratulations — you are now a property owner in Israel!