Your developer just sent you a PDF. There is a voucher number at the top, an amount in shekels, a due date, and a bank account number written in Hebrew. Nobody called to explain it. Your lawyer acknowledged it briefly. Now you are sitting abroad trying to figure out what to do with it and how much time you have.
This is a Shovar. This guide covers exactly what it is, how to pay it from abroad, and what happens if you miss the deadline.
The Short Answer
A Shovar (plural: Shovarim) is a construction payment voucher issued by your Israeli developer at each stage of a new-build property purchase. It specifies the shekel amount due, the payment deadline, and the designated bank account to receive the funds. Because most Israeli new-build contracts are linked to the Madad, Israel's monthly Construction Cost Index, the amount on each Shovar may be higher than what your original contract showed. Foreign buyers must convert their foreign currency to shekels and route the payment through Israel's banking system before the due date. Adesco is licensed by the Israel Capital Market, Insurance, and Savings Authority (License 57103) and processes Shovar payments the same day, while banks typically take three to seven business days and create real deadline risk.
What is a Shovar in Israeli real estate?
A Shovar is a construction payment voucher. When you buy a new apartment from an Israeli developer, you do not pay the full purchase price at signing. You pay in stages as construction progresses. Each stage triggers a Shovar.
Each Shovar is a formal payment instruction specifying a shekel amount, a due date, and a designated voucher account at an Israeli bank. The developer draws on that account when the corresponding construction milestone is reached. This structure protects both sides: your funds are not released until the milestone conditions are met, and the developer can plan their cash flow around confirmed incoming payments.
A typical new construction purchase involves multiple Shovarim across the build period. Each is a separate transaction with its own deadline.
What is the Madad and how does it affect your Shovar amount?
The Madad (מדד) is Israel's Construction Cost Index, published monthly by the Central Bureau of Statistics. It tracks the cost of construction materials and labor across the country.
Most Israeli new-build purchase contracts are Madad-linked. This means each Shovar payment is recalculated at the current Madad value on the date the payment falls due, not the value at the time you signed your contract. If construction costs have risen since your signing, you owe more than your original contract showed.
For foreign buyers, this creates two layers of uncertainty at every Shovar milestone: the shekel amount can change with the Madad, and the shekel-to-foreign-currency exchange rate shifts daily.
Before initiating any Shovar payment, always confirm the current Madad-adjusted amount with your lawyer. Do not assume the figure on your original payment schedule is still correct.
For strategies on managing your currency exposure across multiple Shovar payments, see Smart Currency Strategies for Buying Property in Israel.
Why is paying a Shovar from abroad harder than it should be?
Three specific friction points catch foreign buyers off guard.
Your bank has never heard of it. You call to wire funds for a Shovar. Your bank does not know what one is or how to route a payment to a voucher account. The process stalls before it starts.
The transfer takes too long. A standard international wire takes three to seven business days to clear. Your Shovar has a fixed deadline. If you initiate on the due date using your home bank, the funds arrive late.
It can arrive in the wrong format. Wrong routing details, missing documentation, or an incorrect transfer format. The developer's bank rejects the payment. The deadline passes. Penalty fees begin.
How does a foreign buyer pay a Shovar from abroad?
There are three steps.
- Confirm the shekel amount. Contact your lawyer and confirm the current Madad-adjusted figure. The amount on your original contract may no longer be correct.
- Convert your foreign currency to shekels. A Shovar is always denominated in shekels. Your home bank cannot pay it directly. You need a licensed currency service to convert your dollars, pounds, or euros to NIS at the current exchange rate. Israeli developers almost never accept foreign currency directly. Read more about why Israeli property payments must be in shekels.
- Route the payment to the correct account. The converted shekels must arrive at the specific voucher account on the Shovar document before the due date. Wrong routing details or missing documentation can cause a rejection.
Here is the difference between using your bank and using Adesco:
- Processing time: Your bank takes 3-7 business days. Adesco processes same day.
- Exchange rate: Your bank uses a hidden markup. Adesco uses a transparent published spread.
- Shovar routing: Your bank cannot route without an Israeli account. Adesco handles it for you.
- Deadline risk: High with your bank. None with Adesco.
- Confirmation: Wire receipt only with your bank. Stamped Shovar confirming payment cleared on time with Adesco.
When Adesco processes a Shovar payment, you and your lawyer receive a signed Shovar with a paid stamp confirming the payment cleared on time. Your full payment history is available in your account at any time.
Why does same-day processing matter so much for Shovar payments?
When a Shovar has a fixed deadline, the transfer method determines whether you arrive on time or not.
A standard international bank wire from the United States or United Kingdom takes three to seven business days. If you initiate through your home bank on the day the Shovar is due, the funds arrive late.
Adesco processes Shovar payments the same day within Israel's banking network. You can initiate on the due date and the funds still arrive on time. This is the most important practical difference between using a specialist and using your home bank for Israeli property payments.
What happens if you miss a Shovar deadline?
Your purchase contract specifies the consequences. Ask your lawyer to walk you through the specific penalty terms before your first milestone payment.
The general principle across Israeli new-build contracts is that late payments trigger penalty clauses, typically calculated as daily fees on the overdue amount. In some contracts, extended non-payment gives the developer the right to take further action, including contract cancellation.
For foreign buyers relying on standard bank wires with three-to-seven day windows, the deadline risk is real. The pattern that creates this problem is one of the most common and costly mistakes foreign buyers make. The safest approach: use a same-day service and treat the Shovar due date as your transfer date, not your initiation date.
How does a foreign buyer get a Shovar paid the same day?
You upload the Shovar. You or your lawyer sends the Shovar to your Adesco account. Your advisor confirms the voucher number, shekel amount, and due date before anything moves.
Adesco converts and pays. Adesco converts your balance, whether you hold dollars, pounds, euros, or shekels, and pays the Shovar the same day at a market-based exchange rate. No hidden spread.
You receive a stamped Shovar. You and your lawyer receive a signed Shovar with a paid stamp confirming the payment cleared on time. Your full payment history is available in your Adesco account.
Adesco clients save up to 4,000 NIS per $100,000 transferred compared to bank rates. Across a construction timeline with multiple Shovar payments, that difference compounds significantly.
"Better rate than bank currency exchange. They took care of a multi-step transaction for me." — Stanley Hoffer, Property Buyer
What information do you need before initiating a Shovar payment?
Before any transfer, confirm:
- The Shovar document: voucher number, due date, shekel amount
- The current Madad-adjusted amount from your lawyer
- The receiving bank name, branch number, and account number
- Whether your currency service requires any additional documentation
Do not initiate until all four items are confirmed. If you have a question about timing or documentation, contact us on WhatsApp before you send anything.
Read the full explainer: Shovar Payment Guide for Israel Property Buyers.