The week you sign your purchase contract in Israel, something shifts. Your lawyer in Tel Aviv sends over the first payment schedule. There are amounts in shekels, deadlines in Hebrew dates, and bank account numbers you have never seen before. The payment format is called a Shovar. The funds need to arrive in shekels, on a fixed date, through an Israeli bank.
Your bank at home has never handled any of this. Thousands of foreign buyers reach this moment every year. The friction here costs many of them tens of thousands of NIS in unnecessary fees, exchange rate losses, and missed deadlines. This guide explains how the transfer process actually works and what you need to have in place before your first payment is due.
The Short Answer
Foreign buyers do not need an Israeli bank account to buy property in Israel. You wire funds from your home bank to Adesco, convert at transparent market rates with a published spread, and pay every property obligation in shekels same-day: Shovar vouchers, purchase tax, bank checks, lawyer fees, and seller transfers. Using a licensed currency specialist instead of your home bank saves up to 4,000 NIS per $100,000 transferred, up to 20,000 NIS on a $500,000 purchase. Adesco is licensed by the Israel Capital Market, Insurance, and Savings Authority (License 57103) and processes transfers same-day. Banks typically take three to seven business days for the same transfer.
Do you need an Israeli bank account to buy property in Israel?
No. This is the first surprise for most foreign buyers. You wire from your home bank to Adesco. Adesco converts and pays every property obligation same-day. No personal Israeli bank account or lawyer trust account needed.
Some buyers open an Israeli account later for ongoing expenses: municipal taxes (Arnona), building committee fees, or utility payments. For the purchase itself, it is not required.
What are the two options for transferring money to Israel?
Your home bank. Most international banks can send international wires. The friction comes in three places: the exchange rate, the fees, and the timing. Banks apply their own internal exchange rate, which includes a hidden markup not shown to the client. They charge wire fees on their end, and the Israeli bank receiving the wire charges receiving fees on top. Standard international wires take three to seven business days to clear.
A licensed Israeli currency specialist. A licensed currency exchange company converts your funds at market-based rates with a published, transparent spread, then sends the converted shekels as a domestic Israeli transfer. Because the payment arrives domestically in shekels, Israeli receiving fees are eliminated entirely. Most transfers process the same day.
Here is what that difference looks like in practice:
- Transfer speed: Your bank takes 3-7 business days. Adesco processes same day once funds arrive.
- Exchange rate: Your bank uses a hidden markup. Adesco uses a live market rate with a transparent published spread.
- Wire and receiving fees: Your bank charges at both ends. Adesco charges zero transfer fees.
- Shovar payments: Your bank cannot route without an Israeli account. Adesco handles them for you.
- Bank checks: Your bank cannot issue Israeli checks. Adesco handles them for you.
- Dedicated advisor: Your bank gives you a different person each call. Adesco assigns a named advisor every time.
- Tax and property payments: You coordinate separately with your bank. Adesco handles everything in one place.
For buyers managing multiple payments across a construction timeline, the difference in cost and timing compounds across every payment.
What payments can a currency specialist handle on my behalf?
Foreign property purchases involve more than a single transfer. Adesco handles every payment type that arises during an Israeli property transaction:
- Shovar payments to your developer, processed the same day
- Bank checks issued and delivered for resale and other property payments
- Purchase tax (Mas Rechisha) paid directly to the Israel Tax Authority
- Capital gains tax (Mas Shevach) where applicable
- Lawyer and broker fees sent directly per contract terms, fully documented
- Madad adjustments calculated and transferred to your developer each month
- Suppliers and contractors paid directly from your Adesco account
Everything is documented and accessible through your account at any time.
How do you open an account and get started?
The process is fully digital. No branch visits required.
- Open your account. Identity verification and source-of-funds documentation handled online.
- Share your contract. Your advisor reviews the payment schedule and confirms the details before any funds move.
- Wire from your bank. You send funds from your home bank to Adesco. Live market rates, no hidden fees.
- Adesco handles every payment. Same-day transfers to sellers, lawyers, and tax authorities, with full documentation provided.
Account setup typically takes one to two business days. After that, subsequent transfers process the same day.
What documents do you need?
Israeli financial regulations require source-of-funds documentation for international property transfers. Your currency specialist will review these before your first transfer:
- Passport copy
- Source of funds documentation: bank statements, payslips, property sale contracts, or inheritance papers
- Signed purchase contract for the Israeli property
This is a legal requirement, not an administrative formality. Starting the documentation process before you need to wire keeps you from arriving at a payment deadline with paperwork still outstanding.
How much does it cost to wire money to Israel for a property purchase?
The cost has two components.
Exchange rate margin. Your home bank converts your currency to shekels at their internal rate, which includes a hidden markup. A licensed specialist charges a smaller, published spread. Adesco's spread starts at 0.016 NIS per dollar for transfers above $25,000.
Transfer and receiving fees. Home banks charge wire fees. Israeli banks charge receiving fees when international wires arrive. When you use Adesco, the payment arrives domestically in shekels, eliminating the Israeli receiving fee entirely. Adesco charges zero transfer fees.
Adesco clients save up to 4,000 NIS per $100,000 transferred compared to bank rates. On a $300,000 purchase, that is up to 12,000 NIS. On a $500,000 purchase, up to 20,000 NIS.
"Adesco provided the perfect solution assisting in paying for our home purchase in Israel. They were kind, quick, and efficient." — Asaf, Homebuyer
What is a Shovar and why do foreign buyers need to understand it?
A Shovar is a construction payment voucher. When you buy a new-build apartment in Israel, you do not pay the full price at signing. Your developer issues a Shovar at each construction milestone, specifying the shekel amount due, the payment deadline, and the destination account.
The amount on each Shovar may differ from your original contract. Most Israeli new-build contracts are linked to the Madad, Israel's Construction Cost Index, which updates monthly. Each Shovar is recalculated at the current Madad value when issued. Always confirm the current Madad-adjusted amount with your lawyer before initiating any Shovar payment.
Read the full guide: The Shovar Payment Guide for Foreign Buyers in Israel.
What is the most common mistake?
Waiting until the last moment.
A standard international wire takes three to seven business days to clear. If your lawyer requests the wire with two to three days to spare, and the bank takes five, you arrive late. The math leaves almost no margin.
The most costly mistake foreign buyers make is assuming there is more time than there is. Once you miss a Shovar deadline, the consequences are written into your contract.
Set up your account with a licensed currency specialist before you sign your purchase contract. Every week you delay is a week you are one tight deadline away from a problem.
Can funds go to a lawyer trust account?
Yes, if you prefer. Adesco can convert and transfer shekels to your lawyer's trust account. Most foreign buyers pay directly through Adesco without one.
Adesco is also licensed to hold client funds in trust for Israeli property lawyers - setup typically within 48 hours. How Adesco holds and protects client funds explains the security structure in full.
Learn more: Lawyer trust accounts with Adesco.
Conclusion
The mechanics of transferring money to Israel for a property purchase are not complicated once you understand them. The risk comes from not understanding them until the first deadline arrives. A licensed currency specialist, set up before you need it, converts at better rates, moves funds the same day, and eliminates the friction that slows bank wires down.
Ready to set up before your first payment? Get started here or reach us on WhatsApp.