As a Non-Israeli Citizen, purchasing a residential property in Israeli is no easy. However, with the right advice and guidance, the process can be made considerably more simple.
“Israel was not created in order to disappear – Israel will endure and flourish. It is the child of hope and home of the brave. It can neither be broken by adversity nor demoralized by success. It carries the shield of democracy and it honours the sword of freedom.” John Kennedy
Restrictions on foreign investors
Due to Israeli Governmental land laws, it is extremely difficult for Non-Israeli citizens to buy land in Israel, and investors who have not sought the appropriate Israeli legal advice often complain of the restrictions.
Furthermore, investors who can demonstrate their eligibility for Israeli citizenship based on the Law of Return will be exempt from a number of taxes that apply to foreign investors – including a tax refund if the documents are processed after the real estate deal was completed.
We interviewed specialist Israeli law firm, based in Jerusalem, but with offices in Tel Aviv and Haifa, what are the key questions that investors should ensure their lawyers are asking when working on a residential property purchase.
This was broken into two sets of questions;
9 Key Questions to ask yourself when Investing in Property in Israel:
- What is the land zoned for (residential, commercial etc.)
- Can the zoning be changed?
- Is the zoning in the process of being changed and if so how far along is it? (The answer will affect the worth of the land, the viability of the project and the time to see a return on your investment.)
- If it is a building, what type of building (historical, modern etc)?
- Are there any future plans of the municipality to develop the area in any way, roads, park etc.
- Does the structure have building rights and parking access?
- Can those building rights be used or can they be sold and transferred to another building?
- Are there protected tenants in the building? (This is a critical question because if there are protected tenants they need to be compensated in order to vacate the property and this could be expensive).
- Is there a building or land close by which is zoned for something specific? How might that affect the value of your property?
7 Key Tax Questions:
- How much is the purchase tax on the property?
- How much will the capital gains tax be upon selling the property?
- Is there a way to minimize any possible tax liabilities?
- How will this purchase affect any tax obligations on other properties in your Israeli real estate portfolio?
- Would it be better to put the property in the name of a family member instead of in your own name?
- If you want to register a property in the name of a family member, what might be the tax ramifications for that person?
- If the family member has family who might stand to inherit should the property be put in the name of a trust?
NEXT STEPS..
It is important that the Israeli law firm that you choose has a multi-lingual team that is qualified to represent international investor. Ideally, the law firm would have experience in serving clients in your home nation.
Whether you are Jewish or Non- Jewish, our residential Real Estate lawyers in Israel have assisted many international investors like yourself to make their first international property purchase in Israel.
For a confidential, no-pressure conversation with Israeli Real Estate lawyers, complete the simple 2-step Residential Contact Form israelinvestment.org/real-estate/
