Israeli property tax for Olim, purchase tax – Mas Rechisha, מס רכישה, offers one of the most generous rates and exemptions available to any buyer in Israel. Where Israeli property tax applies on an Israeli real estate purchase, Olim – new immigrants may benefit from significantly reduced rates under Israeli law.
Israeli Property Purchase tax is calculated as a percentage of the purchase price and payable within 60 days of signing the purchase agreement. The rate depends on the buyer’s status. New immigrants, Olim Chadashim, have their own separate category under Israeli law, and it is one of the most generous property tax benefits available to any buyer in Israel.
For an overview of Israeli property purchase tax and capital gains tax rates across all buyer categories, see our article: Israeli Property Taxes 2026; Purchase Tax and Capital Gains Tax.
Israeli Property Tax for Olim – Purchase Tax – Regulation 12
The August 2024 amendment to the Purchase Tax Regulations introduced Regulation 12a (תקנה 12א) for residential property purchases by Olim, while Regulation 12 (תקנה 12) was narrowed to apply to commercial property and agricultural land only. An Oleh may benefit from both independently. Link to Israeli Tax Authority
Purchase Tax – Regulation 12a — Residential Property (from August 15, 2024)
Applies to the Oleh’s sole residential property:
0 – 1,978,745 NIS: 0%
1,978,745 – 6,055,070 NIS: 0.5%
6,055,070 – 20,183,565 NIS: 8%
Above 20,183,565 NIS: standard rates apply
Regulation 12 – for all Olim
0 – 1,988,090 NIS: 0.5%
Above 1,988,090 NIS: 5%
Olim who made aliyah before August 15, 2024 and have not yet used their benefit may elect between Regulation 12 and Regulation 12a for a residential property purchase.
The reform introduced a zero percent bracket for the first time under this regulation and significantly reduced the rate on the middle bracket, an improvement that produces a substantial saving on most transactions. In most cases the current rates are more favorable, but the right choice depends on your specific purchase price and should be confirmed before signing.
Who Qualifies
Olim – New immigrants holding a valid Oleh visa (תעודת עולה) issued under the Law of Return upon making Aliyah
Purchases of a sole residential property in Israel
One-time benefit per household for either purchase
The benefit applies to investment apartments purchases as well as primary residences.
Why Israeli Property Tax for Olim Matters
Understanding Israeli property tax for Olim before signing is a game changer. The benefit applies from one year before making aliyah to seven years after your official aliya date, meaning some Olim who have already purchased a properry in Israel may still be within their eligibility window for a future purchase.
Whether you are purchasing your first home in Israel or an investment property, confirming your eligibility before signing the purchase agreement is essential. An Israeli real estate lawyer can verify your status, calculate your exact saving, and ensure the benefit is correctly applied to your transaction
The eligibility window runs from one year before aliyah to seven years after. Not sure where you stand or whether you qualify? Contact us
Before you proceed
Israeli Property Tax for Olim – Purchase Tax – Regulation 12 benefit is one of several financial advantages available to new immigrants purchasing property in Israel. Eligibility depends on individual circumstances, aliyah date, prior use of the benefit, property value, and transaction timing among them.
Consult an Israeli Real Estate Lawyer before proceeding or signing any purchase agreement to ensure your benefits are correctly applied to your transaction.
If you are an Oleh – new immigrant considering purchasing property in Israel, or an Oleh within your eligibility window, I am always available for a consultation.