Buying a House in Israel: A Guide for Foreign Buyers

Noam Vasl
Jul 15
2 min read

Thinking about buying a house in Israel? If you want to invest, move to Israel, or buy a vacation home, Israel’s real estate market has great chances. However, it also has special rules, especially for foreign buyers.

In this guide, we will explain how foreigners can buy property in Israel. We will cover how to get a mortgage, what documents you need, and what to expect during the process.

Can Foreigners Buy Property in Israel?

Yes, foreign nationals can legally buy property in Israel. Numerous properties available on the private market can be accessed by non-residents, including residences located in cities like Jerusalem, Tel Aviv, Netanya, and Efrat.

However, some limitations exist:

State-owned or agricultural land may not be available to foreigners.
Properties in politically sensitive areas (like parts of the West Bank) may require legal consultation.

Getting a Mortgage in Israel as a Foreigner

Buying a house in Israel usually means dealing with high prices—and many foreign buyers ask if they can get a mortgage.

✅ The answer is yes. Israeli banks do offer mortgages to foreigners, but under stricter conditions than for local residents.

Key points:

💰 Loan-to-value: Up to 50% of the property price
📄 Required documents:
- Valid passport
- Proof of income (e.g., payslips, accountant letter)
- Credit report from your country
- Recent bank statements
- Property purchase agreement
📈 Interest rates: Around 4% to 6.5% for foreign buyers
⏳ Timeline: Approval usually takes 4–6 weeks

Tip: Work with an English-speaking mortgage advisor or real estate expert in Israel for a smoother process.

Costs Involved in Buying a House in Israel

When buying property in Israel, don’t forget to factor in:

📌 Purchase tax (Mas Rechisha) – usually 8–10% for non-residents
🧾 Legal fees – around 0.5–1% of the property value
🏦 Bank fees (if getting a mortgage)
🧱 Renovation or furnishing costs, if applicable

Buying in the West Bank: Can Americans Invest There?

Yes, many Americans and other foreigners buy homes in Efrat, Gush Etzion, and nearby areas. It's important to work with a real estate agent. They should understand legal and political issues. You also need a lawyer who is knowledgeable in these areas.

Noam Homes has extensive experience helping international buyers in these regions.

Summary: What to Know About Buying a House in Israel

Step	Details
Foreign ownership	Legal in most private property cases
Mortgage	Up to 50% financing for foreigners
Documents	Income proof, credit report, bank statements
Timeline	4–6 weeks for mortgage approval
Costs	Tax, legal fees, banking fees

Final Thoughts

Buying a house in Israel is absolutely possible for foreigners—with the right planning, local guidance, and professional support. Whether you're investing for the future or making your dream of living in Israel a reality, we’re here to help.

👉 Contact Noam Homes today for expert guidance on finding, financing, and finalizing your dream home in Israel.