For many Jewish families abroad, owning a home in Israel is more than an investment, it is a tangible link to family, heritage, and the future. That excitement can quickly turn into anxiety once foreign tax rules, unfamiliar contracts, and a legal system 6,000 miles away enter the picture.
That is where experienced local guidance becomes essential. Attorney Eldar Adato is a prominent Israeli real estate and urban renewal attorney and the managing partner of Adato Law Firm. The Tel Aviv boutique practice has guided international buyers from the United States, Canada, the UK, and beyond for more than thirty years. Adato explains what foreign buyers should know before purchasing property in Israel, from legal due diligence and taxes to financing and completing the transaction from abroad.
Can foreigners actually buy property in Israel?
"Absolutely, there is almost no restriction on buying properties based on citizenship or residency".
How does the process work when buying from abroad?
"The guiding rule is simple: no document is signed, no commitment made, and no funds transferred until our legal due diligence is complete. We negotiate directly with the seller's counsel, verify title and ownership, confirm the property was built and is used in accordance with its permits, and check for mortgages, liens, or any other encumbrance, so every protection we uncover is written into the purchase agreement itself, and not left to trust. Only once that review is finished, and I have personally walked the client through every term, do we move forward with signing the agreement. From there, we manage the full transaction: purchase tax, financing, transfer of funds, and registration with the Israel Land Registry".
"The sequence matters more than anything else. The costliest mistake an overseas buyer can make is signing, committing, or wiring a deposit before independent counsel has reviewed the property and its terms. Undisclosed debts and misrepresented rights are exactly what that review is designed to catch before they become the buyer's problem".
How much purchase tax will a foreign buyer owe?
"As a general rule, foreign residents generally pay purchase tax at rates of 8% to 10%.
However, taxation should never be approached as a purely mechanical calculation. For every client, we conduct an individual assessment of their residency status and personal circumstances to determine whether they may qualify for a more favorable tax treatment and, where possible, lawfully reduce their overall tax exposure".
Can a non-resident get an Israeli mortgage?
"Yes, though on materially different terms than a resident would receive, typically financing up to about 50% of the property's value, compared with up to 75% for an Israeli. In practice, without an Israeli attorney managing that process on the ground, it is exceedingly difficult for a buyer abroad to have a mortgage approved at all".
What are the total costs beyond the purchase price?
"Attorney's fee, broker's commission where relevant, registry fees, and bank and appraiser fees if there's a mortgage".
Can the purchase be completed without visiting Israel?
"Certainly. Most of our international clients complete their transactions remotely. Under a Power of Attorney, we handle the due diligence, documentation, signing, and transaction through completion and handover. For significant transactions, we can also attend the signing personally or meet with clients face-to-face when required. I also travel to Miami and New York several times a year specifically to meet clients in person, so a face-to-face meeting is available whenever you'd like one, not only for the closing itself".
Should a foreign buyer consider a property in a pinui-binui or Tama 38 urban renewal project?
"It can be one of the most attractive opportunities available to a foreign investor, when properly vetted. These projects can significantly increase a property's value and quality once complete, but they carry legal complexity, developer obligations, tenant rights, and longer timelines that a standard purchase agreement does not address. Urban renewal is one of our firm's core specialties, and we review these projects with the same rigor we apply to any acquisition, so a foreign buyer can weigh the opportunity with full clarity".
Once the keys are in hand, is that where your involvement ends?
"Not at all. Our support can extend well beyond the acquisition itself. For clients wishing to renovate or redesign the property, our dedicated team coordinates the architects, designers, and contractors, overseeing the process until their vision for the home is fully realized".
Attorney Adato summarizes the firm's philosophy: "We do not approach transactions as an assembly line. Every client receives a bespoke strategy encompassing the legal structure, financing, taxation, and continued support well beyond the handover of the keys".
Considering buying property in Israel? Explore our complete guide for overseas buyers, or contact Attorney Eldar Adato for a confidential consultation tailored to your purchase.
"The above does not constitute investment advice, a recommendation or an opinion regarding the viability of any investment and should not be considered a substitute for advice tailored to an individual's personal circumstances and financial situation".
Adato Law Firm
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