Real Estate Transactions in Israel – Cosmos Legal Law Firm Guide

Israel, with its strong economy and developed legal system, is a notable destination for real estate investments. However, property transactions in the country are subject to detailed legal procedures and strict regulatory mechanisms. Cosmos Legal Law Firm provides comprehensive legal support to Turkish citizens throughout the real estate purchase and sale process in Israel.

1. Types of Property Ownership in Israel

Israel’s property ownership system differs from many other countries. Approximately 90% of real estate in the country is managed by the Israel Land Authority (ILA). As a result, full ownership of most properties is not transferred; instead, a long-term leasehold system is used.

• Freehold: Applicable in rare cases of privately owned properties.

• Leasehold: Generally used for properties leased for 49 to 98 years.

Cosmos Legal advises investors on which type of ownership aligns best with their goals.

2. Foreign Ownership Rights

Foreigners can purchase property in Israel under certain restrictions:

• Ownership is limited in military zones or areas of strategic importance.

• Approval from the Israel Ministry of Justice and the Israel Land Authority is required before property registration.

Cosmos Legal assists clients in obtaining these approvals, preparing documents, and monitoring the approval process.

3. Purchase Process

Real estate transactions in Israel are conducted through the following steps:

1. Preliminary Review and Property Verification: Examination of land registry records and legal due diligence on the property.

2. Sales Agreement (Zichron Devarim): Signed by the parties, outlining the terms of the sale.

3. Legal Review: All property transactions in Israel must be conducted through a lawyer. Cosmos Legal oversees contract preparation, property due diligence, and payment processes.

4. Property Registration: After completion, ownership is transferred at the Land Registry Office.

4. Taxes and Fees

Key taxes and fees associated with property purchases in Israel:

• Purchase Tax: Varies based on property value (approximately 5–10%).

• Capital Gains Tax: Levied on profit from the sale of property.

• Registration Fee: Paid to the Land Registry for property registration.

Cosmos Legal provides professional guidance on tax planning and cost calculations.

5. Real Estate Financing and Mortgages

Foreign investors can access mortgage loans through Israeli banks. However, such loans typically require high collateral and interest rates are higher than for citizens. Cosmos Legal represents clients in negotiations with financial institutions and evaluates mortgage contracts from a legal perspective.

6. Services Provided by Cosmos Legal

Cosmos Legal Law Firm offers the following services to Turkish citizens seeking to acquire property in Israel:

• Land registry research and ownership verification

• Preparation and review of sales agreements

• Tax and expense consultancy

• Oversight of property registration processes

• Assistance in obtaining foreign ownership permits

With our international legal experience, we ensure that all transactions are conducted safely, efficiently, and in compliance with the law.

Conclusion

Purchasing property in Israel can be complex from a legal standpoint, but with the right guidance, it can be a highly profitable investment. Cosmos Legal Law Firm provides reliable legal support at every stage of the property acquisition process in Israel.