Israeli & Cross-Border Legal Research
AskEULaw covers Israeli real estate law, immigration, family law, and the cross-border legal questions that arise when EU nationals move to Israel or Israeli citizens invest in Europe. Our knowledge base includes 13 curated documents on land registration, purchase tax, betterment levy (Hetel Hashbacha), mortgage law, planning (TAMA 38), and Aliyah procedures.
Key Legal Topics
Buying Property in Israel as a Foreign National
Foreign nationals may purchase residential and commercial property in Israel without special government approval in most cases. Purchase tax (Mas Rechisha) for foreigners ranges from 8% on the first ₪5.9M to 10% above that threshold (2024 rates).
Aliyah — Immigration to Israel Under the Law of Return
Any Jew, their spouse, children, and grandchildren are entitled to immigrate to Israel under the Law of Return (1950). Olim Chadashim receive a package of absorption benefits, tax exemptions for ten years on foreign-source income, and a one-time customs exemption on household goods.
Israeli Employment Law
The Basic Law: Human Dignity and Liberty underpins Israeli labour law. Key protections include annual leave (minimum 16 days rising with seniority), severance pay after one year of employment, and mandatory pension contributions (employer 7.5%, employee 6%).
Betterment Levy (Hetel Hashbacha)
Betterment levy is charged at 50% of the increase in property value attributable to a planning permission granted by a local committee. It is payable upon sale or when building rights are exercised. Exemptions and deferrals exist for primary residences.
TAMA 38 — Urban Renewal & Building Reinforcement
TAMA 38 is a national outline plan that grants building rights to owners who reinforce existing buildings against earthquakes. In exchange, developers receive rights to add floors or units. The programme has been extended several times and applies to buildings constructed before 1980.
Frequently Asked Questions
Do I pay purchase tax as an EU citizen buying in Israel?
Yes. Non-residents (including EU citizens) pay the foreign purchaser rate: 8% up to ₪5,872,725 and 10% on the remainder (2024 bracket). There is no exemption for a 'first apartment' as there is for Israeli residents.
Can I keep my EU citizenship after making Aliyah?
Israel does not require you to renounce other citizenships. However, your EU member state's rules on dual citizenship vary — some countries (e.g., Germany) generally do not allow acquisition of a third country's citizenship without losing German citizenship, subject to exceptions.
Is an Israeli property purchase governed by EU law?
No. Israeli law (Land Law 1969, Sale Law 1968) governs Israeli real estate. EU law does not apply. However, if you are an EU tax resident, your home country's tax rules on foreign property income and capital gains will apply alongside Israeli tax obligations.
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