Israel's property purchase tax — mas rechisha — is paid by the buyer and is tiered by price. The brackets differ for a single home vs an additional property, and because most foreign and diaspora buyers already own a home, they usually pay the higher "additional property" brackets. New immigrants (olim) may qualify for relief. Rates change periodically, so treat the below as orientation and confirm current numbers with a licensed Israeli attorney before signing.
| Factor | Effect on mas rechisha |
|---|---|
| Single home (your only residence in Israel) | Lower, progressive brackets (first band often 0%) |
| Additional property (own a home anywhere) | Higher brackets from the first shekel — most foreign investors |
| New immigrant (oleh) status | May qualify for a reduced rate within a time window |
| Property price | Progressive — higher bands apply to higher price segments |
Purchase tax applies to a pinui-binui apartment as it does to any purchase, based on the price you pay at entry. Because entry prices in renewal compounds can be lower, the tax base can be lower too — another reason the compound's statutory-stage pricing matters. See also the remote-purchase guide and can a foreigner buy.