Buying property in Israel from Italy

Purchase tax, the 1995 Italy-Israel treaty, Italian reporting duties and mortgage: everything an Italian buyer needs to know.

Can an Italian resident buy property in Israel?

Yes. Israel places no restrictions on foreign buyers: Italian residents buy under the same property law as Israelis. You will need an Israeli real estate lawyer, an Israeli bank account, and a notarized power of attorney with apostille if you sign remotely. Ownership is registered at the Tabu (land registry) — the registration, not the signature, is what makes you the legal owner.

Money transfer and currency: what to prepare

Prices are set and paid in shekels (₪). Open an Israeli bank account in your name before transferring funds — non-resident account opening takes a few weeks, so start early. Send transfers from your Italian bank keeping full traceability of each one: this is what allows you to repatriate the proceeds when you sell. Exchange risk is real — budget in euros, but pay in shekels, and avoid converting at the last minute.

Tax: purchase tax and the 1995 treaty

On purchase, non-resident Mas Rechisha (purchase tax) is 8% up to ₪6,055,070, then 10% above, from the first shekel, due within 60 days — brackets frozen until January 15, 2028. The Italy-Israel double-taxation treaty (1995) covers the rest: rents are taxed in Israel (10% flat rate on gross, or the progressive scale with expense deductions) and must be declared in Italy in the RL section (quadro RL), with a credit for tax paid in Israel; capital gains (Mas Shevach, 25% on the real gain) are taxed in Israel. The property must also be reported in the RW section (quadro RW, fiscal monitoring) and is subject to IVIE. Have an Italian-Israeli tax adviser review your situation before you sign.

Mortgage (mashkanta) for Italian buyers

Israeli banks (Leumi, Hapoalim, Mizrahi-Tefahot, Discount) lend to non-residents up to 50% of the property value (75% for residents), over 20-30 years, at 2026 rates of roughly 4-6% depending on the track. Expect 4-8 weeks for approval, with your tax return, payslips and 6 months of bank statements. Alternative: financing secured against a property you own in Italy — but with EUR/ILS exchange risk. See our mortgage guide.

Tama 38 and Pinouy Binouy: what an Italian buyer should know

Tama 38 and Pinouy Binouy are Israel's urban-renewal programs: Tama 38/1 reinforces and extends existing buildings (adding a Mamad safe room); Tama 38/2 and Pinouy Binouy demolish and rebuild. Buying into an approved project can create value, but timelines are long and many projects never reach permit stage. Verify the actual permit status — not the brochure — before committing funds.

Signing remotely: power of attorney

You don't need to fly in to sign. A power of attorney signed before a notary in Italy and stamped with an apostille lets your Israeli lawyer sign on your behalf. Start the paperwork early — banks and the Tabu have their own forms and timelines.

Buying from Italy? Get accompanied Italian-speaking lawyer, mortgage broker and Italian-Israeli tax adviser — one point of contact, in Italian.