Costs and Fees (valid from January.16.2020)

When Leasing a property the following are the costs that must be taken into account :

Real Estate Broker’s Commission (Dmei Tivuch)
On leasing property brokers customarily charge as follows
1.For a period of one year or more – one month rent.
2.For a period less than one year – 10% of the total rent (minimum charge $150)
Value Added Tax currently 17% is added to any commission due.

Lawyer’s Fees
Most lawyers charge the equivalent of two weeks rent.
Value Added Tax is added to any commission due.

When Buying a property the following are the costs that must be taken into account:

Real Estate Broker’s Commission
On the purchase or sale of property, brokers customarily charge 2% of the inclusive price of the property.

Value Added Tax is added to any commission due.

Lawyer’s Fees
Most lawyers charge 1% + VAT. (equivalent to 1.17%)

Purchase Tax (Mas Rechisha)
The Purchase Tax in respect of residential dwellings is an incremental (progressive) tax.
In order to calculate the tax, the total purchase price of the dwelling is divided into several levels or brackets and

a different rate of tax is applied to each bracket, as follows:

Bracket 1 is subject to tax at the rate of 0.00%-0.50%
Bracket 2 is subject to tax at the rate of 3.50%
Bracket 3 is subject to tax at the rate of 5.00%
Bracket 4 is subject to tax at the rate of 8.00%
Bracket 5 is subject to tax at the rate of 10.00%

This applies to a Local buyer who does not own another residence in Israel or more then 1/3 parts of a property.
The range of each bracket is adjusted every 3 months in shekel terms in accord with changes to the Israeli Consumer Price Index

and at present is roughly equivalent to the following:

Bracket 1 (0.00%) – First 1,744,505 ns
Bracket 2 (3.50%) – Next 1,744,505 – 2,069,205 ns
Bracket 3 (5.00%) – Next 2,069,205 – 5,388,290  ns
Bracket 4 (8.00%) – Next 5,388,290 – 17,794,305 ns
Bracket 5 (10.00%) – Next 17,794,305 ns and higher

A none Israeli and / or Israeli resident buying a second residence will be taxed as followed .

Bracket 1 (5.00%)   Up to   1,292,280 ns

Bracket 2 (6.00%) – Next 1,292,280 – 3,876,835 ns

Bracket 3 (7.00%) – Next 3,876,835 – 5,338,290 ns

Bracket 4 (8.00%) – Next 5,338,290 – 17,794,305 ns

Bracket 5 (10.00%) – Next 17,794,305 ns and higher

New Olim 

Bracket 1 (0.50%) – First 1,744,505 ns
Bracket 2 (5.00%) – Next 1,744,505 and higher

Tax simulator :
Tax calculator

The information contained on this page is a general guide.
Prospective purchasers must obtain specific legal and professional advice from qualified Israeli legal counsel or tax advisors.