What Will Your Israel Property Actually Cost You?
Most buyers are surprised by the true cost. Enter your price and see everything — purchase tax, lawyer, Madad, renovation, and exactly how much you save by transferring with Adesco instead of your bank.
Let Adesco handle the currency side — same day
Market-based rates. Zero hidden fees. Funds held in trust at major Israeli banks. Licensed by the Israel Capital Market Authority.
Estimates based on typical costs for foreign buyers in Israel. Purchase tax rates, agent and lawyer fees vary by transaction. Currency conversion uses an indicative rate of 1 USD = 3.72 ILS. Consult a licensed Israeli lawyer for advice specific to your purchase. Adesco is licensed by the Israel Capital Market, Insurance, and Savings Authority — License #57103.
The True Cost of Buying Property in Israel
Foreign buyers purchasing property in Israel face several additional costs beyond the listing price. As a non-resident, you should expect to pay 15%–30% more than the headline price once you factor in government taxes, professional fees, and optional costs like renovation.
Purchase Tax
8% on the first ~₪5.9M and 10% above that for foreign buyers. This is the single largest additional cost and is paid to the Israeli Tax Authority.
Professional Fees
Lawyer fees (0.5%–1.5% + VAT) and real estate agent commission (2% + VAT) are standard. Both are essential for a smooth transaction.
Currency Transfer
Transferring funds through Adesco instead of your bank saves up to ₪4,000 per $100,000 — with market-based rates, zero fees, and same-day transfers.
New Build Costs
Off-plan purchases are subject to Madad (construction cost index) adjustments, typically adding 2%–4% over a 12–24 month construction period.
Frequently Asked Questions
What is the purchase tax (Mas Rechisha) for foreign buyers in Israel?+
Foreign buyers (non-residents) pay 8% on the first ₪5,872,725 and 10% on amounts above that. This is paid directly to the Israeli Tax Authority and is one of the largest additional costs when buying property in Israel.
How much are lawyer fees for buying property in Israel?+
Israeli real estate lawyers typically charge between 0.5% and 1.5% of the purchase price, plus 17% VAT. Your lawyer handles the purchase contract, due diligence, title transfer at the Land Registry (Tabu), and all legal documentation.
What is the Madad (construction cost index) and how does it affect my purchase?+
The Madad is Israel's construction cost index. For new-build (off-plan) purchases, your staged payments are linked to this index. As construction costs rise, your remaining payments increase accordingly — typically adding 2%–4% to the total cost over a 12–24 month build period.
How much can I save on currency transfers when buying property in Israel?+
Using a specialist currency exchange provider like Adesco instead of your home bank can save up to ₪4,000 per $100,000 transferred. On a typical property purchase, this adds up to significant savings — often tens of thousands of shekels.
What are the total additional costs when buying a home in Israel as a foreigner?+
Beyond the purchase price, foreign buyers should budget an additional 15%–30% for: purchase tax (8%–10%), lawyer fees (1%), real estate agent (2%), currency transfer costs, and optional costs like renovation, furniture, and mortgage setup. Use the calculator above to get a personalised estimate.