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During a real estate acquisition in Israel, there is no pre-sale agreement or a "Compromis de vente" as in France. The parties directly sign a final contract with the details and conditions of purchase.
Fees/Expenses differ between Israeli residents and foreign buyers. Incidental purchase expenses include registration fees, your lawyer's fees (generally 1%+VAT), and the real estate agent's fees (2%+VAT).
They represent between 3.5% and 12% depending on the buyer and the value of the apartment. The difference results from the calculation of the registration fees. As of January 16, 2022, purchase taxes are fixed as follows:
11st Time Israeli home buyer | |
Apartment value (NIS) | Acquisition tax |
< 1 805 545 | 0 |
from 1 805 545 to 2 141 605 | 3.50% |
from 2 141 605 to 5 525 070 | 5% |
from 5 525 070 to18 416 900 | 8% |
>18 416 900 | 10% |
Non-Israeli buyer OR 2nd Time Israeli buyer | |
Apartment value (NIS) | Acquisition tax |
< 5 525 000 | 8% |
> 5 525 000 | 10% |
The surfaces in Israel correspond to the surface of the outline of the apartment (without taking into account the thickness of the interior walls). The balconies are half weighted.
Legal and real estate agency fees are paid when the contract is signed.
Acquisition taxes must be paid within 50 days of signing the apartment.
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