How to sell property in Israel as a foreign owner: process, taxes and getting the money out

In brief

As of November 2026, selling Israeli property from abroad is a lawyer-led process that takes about one to three months from signing to closing (one law firm gives 30 to 90 days). Two numbers decide how much you actually receive: land appreciation tax (mas shevach) at 25 percent of the real gain, and 7.5 percent of the gross price that the buyer holds back unless you hold a withholding exemption certificate, which takes about 30 to 60 days to obtain. Citizenship does not decide the treatment; tax residency does. This is general information, not legal or tax advice.

How a sale works when you live abroad

In Israel a sale is run by a lawyer, not by an agent. The agent finds the buyer; the lawyer drafts the contract, checks the title, handles the tax filings and the money. You can sign through a power of attorney, but the document must be valid for use in Israel (see our guide to documents and translations), so decide early whether you will fly in or sign from abroad.

Title is checked in the land registry (Tabu). The buyer's lawyer orders a Tabu extract, which shows the registered owners, mortgages, liens and caveats. If a bank mortgage is registered, it has to be cleared at closing. If the property sits on land leased from the Israel Land Authority, the lease terms and any required consent also matter for the buyer. We did not find a published time for registering the buyer after closing, so do not promise one to anyone.

For the general logic of a cross-border sale see our step-by-step guide to selling property abroad and the note on getting the money out. This article covers what is specific to Israel.

Step by step, with timing

• Week 0: hire an Israeli lawyer, collect passports, the purchase contract and proof of how you paid originally, and decide on a power of attorney.
• Weeks 1 to 4: agree the price and sign the sale contract. The buyer usually pays a deposit on signing.
• Within 30 days of signing: the sale is declared to the Israel Tax Authority. Some advisers cite 40 days for the capital gains report and 60 days for payment. These may be different filings, so ask your lawyer which applies to you.
• Weeks 2 to 10: apply for the withholding exemption or reduced-rate certificate. One law firm estimates 30 to 60 days for it. Start the application at once, because it runs in parallel with the closing.
• Closing: one law firm puts signing to closing at 30 to 90 days. The buyer pays the balance, minus any withholding, and the property is transferred.
• After closing: the proceeds sit in an Israeli account, usually a non-resident shekel account, until you convert and send them abroad.

Tax in brief

The detailed tax rules for non-residents are summarised in our overview of taxes on selling abroad by country. The Israeli points that matter most:

• Land appreciation tax (mas shevach) is 25 percent of the real gain, meaning the gain after adjusting for inflation. For property bought before 1 January 2014 the law uses a linear method: the part of the gain accrued up to 2014 is exempt and only the later part is taxed. Foreign residents can generally use the linear method. One source reports that this benefit is being phased out by 2030; no other source confirms it, so check the current rule before you rely on the old calculation.
• The single-apartment exemption is generally not available to a non-resident. A narrow exception exists if you prove that you own no other residential apartment anywhere in the world, usually with a statement from your home-country tax authority. Sources disagree on how often this works, so ask a lawyer.
• The purchase tax (mas rechisha) is paid by the buyer, not by you, but it affects how much a foreign buyer will offer.
• Withholding: without a certificate the buyer holds back 7.5 percent of the gross price. That is a prepayment, not the final tax, but it can be much larger than the tax you really owe.

A worked example

Illustrative arithmetic on stated assumptions, not market data. You sell an apartment for NIS 4,000,000. After inflation adjustment your real gain is NIS 600,000, all accrued after 2014, so the whole gain is taxed.

• Tax at 25 percent: NIS 150,000.
• Withheld by the buyer without a certificate: 7.5 percent of NIS 4,000,000, which is NIS 300,000.
• Difference tied up until it is settled: NIS 150,000.

With an exemption or reduced-rate certificate in hand before closing, the buyer withholds only what the certificate allows. This is the single most useful document to start early.

Getting the money out

The price is in shekels. After closing the money normally lands in an Israeli account, often a non-resident shekel account, and you convert it and send it to your account abroad. We found no source that describes capital controls on such transfers, but we also found nothing about specific banks, so ask your bank in advance what it will need.

Banks ask for the sale contract, proof of tax payment or exemption, and proof of how you originally paid for the property. If your passport is from a country under sanctions, expect more questions: the source of the original funds, your tax residence, and who benefits. We found no Israeli rule that treats Russian, Belarusian, Kazakh or Ukrainian citizens differently by passport, because tax residency decides the tax, but bank practice can differ. For the paper trail see bank checks for Russian citizens living in the EU and, if the original money came from crypto, proving crypto income to banks.

Common mistakes

• Waiting until closing week to apply for the exemption certificate, then losing 7.5 percent of the price for months.
• Assuming the single-apartment exemption applies to you without proof that you own nothing else abroad.
• Using the old pre-2014 calculation without checking whether the benefit changed.
• Missing the reporting deadline because 30 and 40 days were confused.
• Signing a power of attorney that Israeli authorities will not accept.
• Not keeping proof of the original purchase price and of improvements, which lowers the gain.
• Opening no account in advance and arriving at closing with nowhere to receive the money.

Checklist before you list

• Lawyer hired and a power of attorney that works in Israel.
• Tabu extract ordered; mortgage and liens known.
• Purchase documents and improvement receipts collected.
• Exemption certificate application started.
• Reporting deadline written down and confirmed with the lawyer.
• Bank contacted about receiving and sending the proceeds.
• Home-country tax obligations clarified (see tax residency when relocating).

What is confirmed and what is not

The 25 percent rate, the 7.5 percent withholding, the 30-day declaration and the role of a lawyer are consistent across the practitioner sources we found. We did not open the Tax Authority or gov.il pages, so every figure here is a summary of law-firm notes. Not confirmed: the exact reporting deadline, the phase-out of the linear method, the current treatment of the single-apartment exemption for non-residents, the length of the certificate procedure, bank rules for specific passports, and any rule for repatriates. Check these with an Israeli lawyer before you sign.

FAQ

How long does it take to sell an apartment in Israel as a non-resident? From signing to closing one law firm gives 30 to 90 days, and the withholding exemption certificate is reported to take 30 to 60 days. The time before signing depends on the market and is not sourced here.

Will I pay land appreciation tax if I live abroad? Generally yes. The rate is 25 percent of the real gain, and non-residents are generally not eligible for the single-apartment exemption, except in a narrow case that you have to prove.

What is the 7.5 percent withholding and can I avoid it? It is a part of the gross price that the buyer holds back unless you hold an exemption or reduced-rate certificate. It is a prepayment, so applying for the certificate early keeps your money from being tied up.

Can I sell without coming to Israel? Usually yes, through a power of attorney that is valid for use in Israel, with a lawyer handling the filings. Ask your lawyer which form of authorisation they will accept.

Is it harder to transfer the money if I hold a Russian passport? We found no Israeli rule that treats passports differently, because the tax follows tax residency. Banks can ask more about the source of funds, so prepare documents before the sale.