Real Estate Acquisition Tax in Israel - Practical Guide 2026

In early July 2026, a plane carrying 128 new immigrants from France landed at Ben Gurion Airport.

Figures published by the Jewish Agency and the Ministry of Aliyah and Integration show that this is not an isolated event but a fundamental trend: 1,097 olim from France in 2023, 2,234 in 2024, more than 3,300 in 2025 - and, since the beginning of 2026, more than 2,500 new aliyah applications opened in France, representing an increase of approximately 30% compared to the same period last year.

Almost every family preparing for Aliyah asks themselves the same question sooner or later: should we buy an apartment in Israel now, or wait? The answer deserves to begin precisely with the question of mas rekhicha - the acquisition rights - because this is often where the most significant financial difference lies.

The tax advantage granted to olim: what does current law stipulate?

Until August 2024, olim had an old system: a tax of 0.5% up to a ceiling of about two million shekels and 5% beyond that.

This system primarily benefited buyers of high-value properties; for a standard-priced apartment, it could prove more expensive than the rates applicable to an Israeli resident purchasing their sole residence.

On August 15, 2024, an amendment to the property taxation regulations came into effect, significantly altering the situation. Under the new system, a new resident (oleh) acquiring a single dwelling pays the tax as follows (scale in effect as of July 2026):

Property value - Applicable rate for the oleh:

Up to 1,978,745 ₪ - Total exemption (0%)

From 1,978,745 to 6,055,070 ₪ - only 0.5%

Above 6,055,070 ₪ - Standard scale for single residence

Two reservations, however, deserve attention:

• The first - when the value of the asset exceeds 20,183,565 ₪, the benefit does not apply at all.

• The second - those who made aliyah before 15.8.2024 and have not yet purchased can choose between the old and new regimes; and it sometimes happens, against all expectations, that the old regime is more favorable - for example when it is not their sole residence.

The advantage in figures

Let's take the case of a client I received this week at my office: a new immigrant (Olah) who arrived from Paris, who acquired a four-room apartment in Netanya for 3 million shekels.

Under the ordinary single-residence regime, her acquisition fees would have amounted to approximately 45,500 shekels; thanks to the olim regime, she will only pay approximately 5,100 shekels. That's a difference of over 40,000 shekels.

However, the benefit is not granted automatically. It must be requested as part of the property tax return filed after the contract is signed, and it is only granted once for the purchase of a residential property.

The eligibility window: one year before Aliyah, seven years after

The right to this benefit applies to any purchase made between one year before aliyah and seven years after (periods of military or national service are not counted). For families in France, the practical implications are considerable: it is possible to complete the purchase while still residing in France (whether you live in Paris, Marseille, Lyon, or any other city), provided that aliyah takes place within one year of the purchase.

Equally crucial is the fact that foreign residents who purchase an apartment in Israel outside the olim (immigrant) program do not, in principle, benefit from the reduced tax rates for sole proprietorships and may be taxed at a rate of 8% from the first shekel – that is, 240,000 NIS for a property worth 3 million NIS. The timing of the transaction is not a mere technical detail; it can make the difference between receiving the full tax advantage and facing the full tax burden.

Buying remotely: possible, but with rigor

Many transactions are now being finalized while the buyers still reside in France. This is entirely possible, provided three elements are carefully considered:

The first requirement is a properly executed power of attorney. Remote signing requires a notarized power of attorney and, if signed in France, legalization by apostille. Imprecise drafting is a frequent cause of delays in registering rights in the land registry (tabou).

The second : preliminary checks. Up-to-date extract from the land register, verification of mortgages and warning notices, examination of the urban planning situation and identification of any irregular constructions; and, for a purchase off-plan from a developer, verification of the bank support and the guarantees provided for by the law on the sale.

The third point : the transfer of funds. Transfers of large sums from a French bank account require advance preparation with the banks on both sides: supporting documents regarding the origin of the funds, monitoring the euro-shekel exchange rate, and meticulous coordination with the payment deadlines stipulated in the contract. A delay in a bank transfer does not constitute a defense against a claim of non-performance.

The mistake that keeps recurring

The most common mistake is buying a "small investment property" before making aliyah, with the intention of acquiring the main family home later. It then becomes clear that the second apartment is no longer a "single residence," and the advantage has vanished. Careful planning of the order of acquisitions can save hundreds of thousands of shekels.

Another mistake: believing that the benefit "will wait". Seven years pass faster than one imagines, between integration, a new job and learning the language, and the right fades away without the slightest warning.

In conclusion

The wave of aliyah from France presents a real opportunity, both for families and for the Israeli real estate market. But between the initial excitement and the signing of the papers, it's best to remember the well-known French proverb, "prevention is better than cure," and the wisdom of our elders: "Think of the end from the beginning" ("Sof maassé bemahchava tehila"). An hour of sound advice, at the right time, can sometimes be worth tens of thousands of shekels.

Maayan ABIHSSIRA, Attorney and Notary

The preceding information is general and current as of July 2026, and should not be considered a substitute for individualized legal advice. Amounts and rates are based on the regulations and schedules in effect at the time of writing.