Smart Currency Strategies for Buying Property in Israel

Introduction: More than just a dream

Buying a home in Israel is a dream for many - but it’s also a financial process that demands clarity, planning, and real-world support. Whether you're purchasing from abroad, relocating, or making Aliyah, understanding how money moves - and how much it really costs - can make or break the experience.

This guide is designed to walk you through everything from planning your budget, to currency conversion, to payment execution and closing costs. Our goal? To empower you with knowledge, help you avoid surprises, and give you the peace of mind that comes from knowing you’re not alone.

Chapter 1: Before you transfer - Setting up for success

Remote online banking access Arrange transfer access with your home bank, whether in the US, UK, France, or elsewhere. Make sure your bank enables you to initiate international transfers remotely via their website. Request to be authorized to transfer any amount (unlimited) globally. For clients of Canadian banks, this has become more difficult lately, so you may consider appointing a family member or friend as power of attorney in your Canadian bank account.

Proving source of funds The seller’s bank or their attorney may require proof that funds originate from your personal bank account, along with proof of your source of funds. An accountant’s letter is usually sufficient. If funds are from a family member, trust, or corporate entity, more questions may arise. Proper planning can avoid those hurdles. Don’t let it get over-complicated. Ask us and we’ll help.

Budgeting If your savings are in USD or another foreign currency, your shekel purchasing power will fluctuate, and you may find yourself spending more dollars than you intended.

Plan your budget and build in a buffer by lowering your exchange rate assumption.
Consider converting funds gradually to help diversify risk.
Adesco can hold your funds in your original currency until you’re ready to convert, and then in shekels until your various payments are due.

Chapter 2: Currency transfers - What you really need to know

Transfer methods

International wire transfers: Fastest and safest for large sums.
Licensed financial institutions like Adesco provide clear transfer instructions for transfers directly between international banks.
Some transfer companies use rails that circumvent the banks - be careful !

Avoid bank fees

Israeli banks charge a fee for receiving foreign transfers, and an additional fee for converting to shekels, and then they apply low exchange rates.
Even with so-called “benefits” ("hatavat shaar"), the exchange rate is still low.
Using Adesco, you can save up to 4 agurot per shekel. That’s 4,000 shekels on every $100,000 transferred - and you’ll receive your funds faster.

See a real story of how one buyer lost thousands at their bank - and how Adesco helped: Read the full story.

Chapter 3: Currency risk - Understanding and managing exposure

What is exchange rate risk? It’s the risk that your home currency (USD, GBP, etc.) will lose value relative to the shekel. If you earn in one currency but spend in another, you're exposed.

Why it matters

Property prices and related costs (taxes, fees, renovations) are all set in shekels.
Exchange rate fluctuations can significantly impact your dollar cost.
Strategy is crucial, especially with staged payments.

Inflation risk: The construction cost index (Madad Habniya)

New properties often link payments to the Construction Cost Index.
This means the amount you owe in shekels can increase monthly, as the index is published on the 15th of each month.
Some builders offer “No Linkage” deals - these are advantageous if available.

Strategies to reduce risk

Transfer funds for near-term expenditures in advance.
Convert in tranches to average out exchange rates.
Maintain liquidity to trade when rates are favorable.
Set a floor rate and convert when the market is down-trending toward your floor.

For more on why paying in shekels is essential - and how Adesco can save you money - read our guide: Paying for Property in Israel with Shekels.

Chapter 4: Special payment methods in Israel

Immediate wire transfers (Haavarat Zahav)

Common for large sums like down payments, renovations, or contractor work.
Enables the recipient to immediately see incoming funds in his bank account.
Usually required when buying a second hand home from a private seller.
Likewise useful for sending money to a lawyer’s trust account.
Adesco policy is to execute all payments as Zahav at no cost to the client

Voucher payments (Shovarim)

Standard for new projects during construction.
Designed to typically be paid in person at an Israeli bank.
Adesco policy is to execute these payments online, always, at no cost to the client.

Bank checks

Frequently required for initial downpayments on second hand purchases.
Typically given to the seller or their representative at contract signing.
It’s a bit cumbersome and problems arise when checks need to be returned or cancelled.
Adesco policy is to provide bank checks at no cost to the client.
Adesco also offers newer alternative methods, which are often more efficient.

Tax payments

Purchase Tax (Mas Rechisha)
Seller’s Capital Gains Tax (Mas Shevach) - Sometimes paid directly by the buyer to guarantee there will be no claims on the property.
All taxes require a voucher issued by the tax authority and can be paid at a bank or online via Adesco.

Municipal property tax (Arnona)

Seller must provide tax approval before transfer of ownership.
In some cities (especially Jerusalem), buyers may need to pay the first year upfront.

Being prepared with the right payment methods helps avoid delays and keeps your transaction on track. Adesco-enabled online payments help facilitate the process.

You don’t have to do this alone

The real cost of buying a home in Israel isn’t just the sticker price - it’s the accumulation of fees, friction, and currency exposure. But with smart planning and the right support, you can reduce stress, protect your money, and close with confidence.

At Adesco, we specialize in helping people move money across borders simply, securely, and personally. You’re not just another transaction - we’re with you every step of the way.

Learn how Adesco keeps your money safe, with same-day transfers and full fund protection: Read more.

Let’s make your home in Israel a reality - wisely, smoothly, and with someone you trust.

A final word on protecting your downside

Exchange rate uncertainty is real. When the shekel exchange rate goes down 10-20 agurot or more, you’ll feel higher cost and that’s stressful - especially if you were hoping (or even believing) to enjoy higher rates. But that’s the nature of markets: unpredictable.

Here’s what we know: no one - not economists, not politicians, not even us - can predict tomorrow’s rate. What you can do is protect yourself:

Build your budget around a conservative exchange rate
Decide how much you’re truly willing to spend in your base currency
Convert in tranches to minimize timing risk

With Adesco, you can hold your funds in multiple currencies and convert when the time is right. If you think the rate might improve, wait. If you're nervous it might drop, convert a portion now.

Smart planning isn’t about chasing the best rate - it’s about staying in control and reducing stress.