When you purchase a property in Israel, you are required to pay a purchase tax dependent on the price of the property and on your personal circumstances. The tax is calculated on a tiered system, as set out below. The rate is worked out on a cumulative basis, so using the numbers below, if the property is 3,500,000 NIS, you would pay nothing on the first 1,696,750, then 3.5% on the amount from 1,696,751 to 2,012,560 and then 5% on the portion from 2,012,561 NIS up to the 3,500,000. (Rather than paying 5% on the total amount) 

The rates in this article are from January 2019 (source). 

You must seek advice from a qualified accountant or lawyer to understand your situation and how much you will be required to pay.

Purchase tax rates 

For a sole residence:

On the first 1,696,750 NIS = 0%

From 1,696,751 NIS to 2,012,560 NIS = 3.5%.

From 2,012,561 NIS to 5,192,150 NIS = 5%.

From 5,192,151 NIS to 17,307,170 NIS = 8%.

Over 17,307,170 NIS = 10%.

 

Different rates apply for overseas buyers, new immigrants and owners of multiple properties. 


You must seek advice from a qualified accountant or lawyer to understand your situation and how much you will be required to pay.