The city of Jerusalem, Israel’s capital, is the cornerstone of the Judeo- Christian civilization. Today, it is densely populated by 690,000 residents, 465,000 of them Jewish, the rest mostly Moslem and Christian. The high demand for residential property in Jerusalem by Jews around the world, accompanied by limited availability of land resources, has resulted in a steady rise in real estate prices in Jerusalem since 1967.

Realtors in Israel

Since 1996, realtors in Israel are required by law to be licensed by the ministry of justice. The Real Estate Agent law defines the obligations and the areas of responsibility for a realtor in Israel. A realtor can legally represent buyers, sellers or both in property transactions or in the process of renting a villa in Israel

Brokers fee

Standard fees in Israel are as follows:
Real estate purchase – 2% of transaction value
Long term rentals – a sum equal to one month’s rent
Short term rentals-15% of total transaction value
All fees listed above are exclusive of VAT

Purchase tax

Israel’s purchase tax is calculated gradually. It ranges from 3.5% to 5% of the property price. Purchase Tax must be paid within 50 days of contract signing.

Legal fees

The fees for professional services (legal) in real estate transactions range from 0.5% to 1.5% (exclusive of VAT) of the buying price. The final rate is set between the attorney and the customer and is normally a function of the transaction volume.


The Israeli mortgage market offers a wide range of loan paths with various terms and conditions – Linkage to the dollar or the shekel, fixed interest or variable interest for a period of up to 30 years. Funding can be raised for as much as 90% of the total property value.


MINHAL Mekarkeey Israel – Israel Lands Administration, ILA
Tabu – Land registry office
Mas Rechisha – Purchase tax
Maam – VAT (value added tax)
Mas Shevach – Capital gains tax on real estate
Heitel Hasbacha – Property betterment tax
Mas Mechira – Sales tax
Metavech – Real-estate agent
Biladiut – Exclusivity
Arnona – City Taxes
Va’ad Bait – House committee, building committee
Private property – Property belonging to Israel’s Lands Administration, which is leased to the buyers and generations following for up to 98 years.
Church property – property belonging to the church with is leased to buyers and generations following for various periods of time according to the specific lease.

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