Mas Rechisha in Israel: the 2026 Guide for French Buyers

Israel's purchase tax explained for French buyers: 2026 brackets, the non-resident case, oleh exemption and worked examples in euros.

Mas Rechisha in one sentence

**Mas Rechisha** (מס רכישה) is the **purchase tax** every buyer pays to the Israel Tax Authority when acquiring property: it is due **once**, at purchase, and the rate depends entirely on your **buyer profile** — Israeli resident, non-resident, or new immigrant (oleh). For a French buyer purchasing from France, it is simple and brutal: **8% from the first shekel**, with no exempt bracket. Understanding this mechanism before signing means avoiding a five-figure euro bill that nothing warned you about.

2026 brackets (frozen until 2028)

First the good news: brackets are **frozen from 16 January 2025 to 15 January 2028** under the 2025 Finance Law (ITA circular 1/2026). Unlike normal years, there is **no annual inflation indexation** during this period — so the figures below apply for all of 2026. For an Israeli resident buying their **sole home** (dira yechida), the schedule is progressive: **0% up to NIS 1,978,745**, then 3.5% to NIS 2,347,040, 5% to NIS 6,055,070, 8% to NIS 20,183,565, and 10% above. Each rate applies only to the corresponding **slice**, like French income tax.

Non-resident: 8% from the first shekel

This is the painful part for French buyers. If you **do not reside in Israel** at purchase, you are treated as an investor: **8% on the full price** up to NIS 6,055,070, then 10% above — **with no zero-rated slice**. On a NIS 2,000,000 apartment, that is **NIS 160,000** in tax (about €40,000), versus a few hundred shekels for an Israeli resident on the same property. There is no exception for 'I plan to move later': only your **status on signing day** counts. Your Israeli lawyer must factor this cost into your budget **before** any offer.

Oleh: exemption up to NIS 1.98M

If you make **alyah** and buy your main residence, new-immigrant (oleh hadash) status unlocks a preferential schedule for the **first 7 years**: **0% up to NIS 1,978,745**, then just **0.5%** up to NIS 6,055,070. On a NIS 2,000,000 apartment, an oleh pays about **NIS 106** in Mas Rechisha — versus NIS 160,000 for a non-resident. The condition: the property must be your **primary residence**, not a pure rental investment. Timing matters enormously: buying **after** obtaining oleh status rather than before can save tens of thousands of euros. This is exactly the kind of trade-off to settle with your lawyer **before** signing anything.

3 worked examples in euros (rate ~NIS 4/€)

What a French buyer pays by profile, on three typical budgets. Indicative rate: **€1 ≈ NIS 4** (adjust on payment day).| Budget | Israeli resident | Non-resident (you, from France) | Oleh |---|---|---|---| €300,000 apartment (~NIS 1.2M) | **€0** | **~€24,000** (NIS 96,000) | **€0** | €500,000 apartment (~NIS 2M) | **~€186** (NIS 744) | **~€40,000** (NIS 160,000) | **~€27** (NIS 106) | €1M apartment (~NIS 4M) | **~€23,900** (NIS 95,538) | **~€80,000** (NIS 320,000) | **~€2,530** (NIS 10,106) |The gap between columns is staggering: at equal budget, a non-resident pays **up to 200 times more** than a resident. That is why alyah timing — or planning with a resident spouse — must be studied upfront.

The 3 mistakes French buyers make

**Mistake #1: thinking in French brackets.** French transfer duties (~7-8% with slices) are unrelated: in Israel, the rate depends on **profile**, not just price. A French buyer who 'estimates' the tax with French logic gets it systematically wrong. **Mistake #2: believing brackets move every year.** They are **frozen until 15 January 2028** — simulators applying annual indexation give wrong results for 2026. **Mistake #3: buying through a company without advice.** A French SCI or Israeli company does not make Mas Rechisha 'disappear'; depending on the structure, you may even permanently lose access to the resident schedule. Every structure must be validated by an Israeli tax lawyer **before** signing.

When and how to pay

The procedure is strict: your lawyer files the **purchase declaration** with the Israel Tax Authority within **30 days** of signing, and the tax must be **paid within 60 days**. Payment is in shekels, usually by transfer from your Israeli account — plan the currency transfer ahead (France-Israel bank delays can reach a week). Late payment triggers automatic **penalties and interest**. Before signing, always run the **official simulator** of the Israel Tax Authority with your lawyer: it is the only figure that counts.

Frequently asked questions: Mas Rechisha

Is Mas Rechisha deductible from French taxes?

No, not directly. Mas Rechisha is an Israeli acquisition tax, not an income tax — so it is not deductible from your French income tax. However, it adds to the property's cost basis, which reduces the taxable capital gain on resale (in Israel and in France, via the tax treaty).

Can I pay Mas Rechisha from France?

Payment must reach the Israel Tax Authority in shekels within 60 days. In practice, your Israeli lawyer wires it from an escrow or your Israeli account, funded by a transfer from France. Allow time for currency exchange and international transfer delays.

What if I become an Israeli resident after buying?

Nothing, retroactively: the applicable rate is your status on signing day. Becoming a resident or oleh afterwards does not entitle you to a refund. That is why timing (alyah before or after purchase) must be decided upfront with your lawyer.

Will the brackets change in 2027?

No. Brackets are frozen by the 2025 Finance Law from 16 January 2025 to 15 January 2028, with no annual indexation. The 2026 figures remain identical in 2027. A revision can only occur after 15 January 2028.

Does buying through a French company (SCI) change the rate?

A company — French or Israeli — is treated as a non-resident: 8% from the first shekel, no exempt slice. Worse, you may permanently lose access to the resident or oleh schedule. Never set up any structure without written approval from an Israeli tax lawyer.

Where can I check the exact amount before signing?

On the official simulator of the Israel Tax Authority, entering the exact price and your buyer profile. Your lawyer must provide this calculation in writing before any signing — demand it, it is your best protection.