Additional Costs for Real Estate Purchase in Israel: Complete Details and Calculator
The 8 Fees to Anticipate
Buying real estate in Israel isn’t limited to the listed price of a new development. As in any property market, additional costs are added to the purchase price, and it’s crucial to budget for them in advance to avoid unpleasant surprises. In Israel, these fees represent between 8% and 12% of the property price for a non-resident.
Here is a comprehensive breakdown of the 8 fees to include in your budget:
Mas Rechisha: the Acquisition Tax (Cost Item #1)
Mas Rechisha is the most significant expense item. It is the Israeli real estate acquisition tax, payable within 50 days of signing the contract. For non-residents, the rate is significantly higher than for residents.
For a property priced at 2,000,000₪ purchased by a non-resident, the Mas Rechisha amounts to approximately 160,000₪ (8% of the price). For a resident buying their first property at the same price, the tax would range from 0₪ to 17,000₪ thanks to deductions.
The calculation is progressive by brackets, with rates ranging from 8% to 10% for non-residents. Our Mas Rechisha simulator calculates the exact amount applicable to your situation.
Lawyer's Fees: 0.5% to 1.5% + VAT (Section #2)
The real estate lawyer is essential in Israel. Their fees range from 0.5% to 1.5% of the property's price, excluding 18% VAT. The percentage depends on the complexity of the transaction, the reputation of the firm, and the value of the property.
For a property at 2,000,000₪: fees from 10,000₪ to 30,000₪ + VAT = 11,700₪ to 35,100₪. This amount covers all services: Tabo verification, contract negotiation, management of the power of attorney, payment monitoring, and final registration.
Bank Fees and Mashkanta Brokerage (items #3 and #4)
If you take out a mashkanta, several bank fees apply. The property appraisal (Shomé) costs between 2,000₪ and 4,000₪. The application opening fees are 0.25% to 0.5% of the loan amount. Borrower insurance is 0.3% to 0.8% per year of the principal. And if you use a mashkanta broker, their fee is 0.5% to 1% of the loan amount.
18% VAT on new builds: included or extra? (point #5)
Key point: for new properties in Israel, the 18% VAT (Ma'am) is always included in the displayed price. The price you see in the IsraelStart catalog is the final price, tax included. This is not an additional fee. However, VAT applies to services: lawyer fees, brokerage, bank appraisal, property management. Add 18% VAT to each of these items.
Tabo Fees and Registration (Section 6)
Registering your property in the land registry (Tabo) incurs administrative fees of 0.5% of the property's price, capped at approximately 1,500₪. Additional procedural fees of 250₪ to 500₪ apply. If the property is under the Minhal (Israel Land Authority) regime, leasehold transfer fees (Dmei Haskama) may apply, ranging from 2% to 3.75% of the value.
Summary Table: Budget 8-12% Above the Price
Here is the summary for a new property at 2,000,000₪ purchased by a non-resident with mashkanta:
| Item | Estimated Amount | % of Price |
|---|---|---|
| Mas Rechisha (non-resident) | 160,000₪ | 8.0% |
| Lawyer (1% + VAT) | 23,400₪ | 1.2% |
| Bank Appraisal (Shomé) | 3,000₪ | 0.15% |
| Mashkanta Application Fee (0.3%) | 3,000₪ | 0.15% |
| Mashkanta Broker (0.75%) | 7,500₪ | 0.38% |
| Tabo Registration | 1,500₪ | 0.08% |
| Moving / Furnishing | 10,000₪ | 0.5% |
| Miscellaneous (translations, mailings) | 2,000₪ | 0.1% |
| Total Additional Costs | 210,400₪ | 10.5% |
| Total Budget (price + costs) | 2,210,400₪ | 110.5% |
Calculate Your Fees Online
Our additional fees calculator allows you to estimate the total budget for your purchase based on your profile (resident, non-resident, Oleh Hadash), the property price, and selected options (with or without mashkanta, with or without broker).
By combining the Mas Rechisha calculator with the additional fees calculator and the mashkanta simulator, you get a complete and accurate overview of your total budget. This financial transparency is essential for making an informed decision and avoiding any financial stress along the way.
For a personalized budget estimate by city, also check our Israel real estate prices 2026 page with updated CBS data.
IsraelStart offers turnkey support for buyers from abroad. Every step is managed by our team in your language.
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