Buying in Israel from Portugal: Complete Portuguese Guide 2026

Buying in Israel from Portugal: a Growing Market

Real estate purchases in Israel by Portuguese buyers are experiencing remarkable growth. The Portuguese Jewish community is modest (about 3,000 people) but growing, driven by Sephardic citizenship programs. Many holders of the Portuguese Sephardic passport are interested in Israeli real estate, combining dual nationality with investment. This trend is explained by the strength of the Israeli market, community and cultural ties, and a transparent legal framework that protects buyers from abroad.

Are you Portuguese and considering investing in Israel? This guide covers all the specifics of your situation: bilateral tax treaty, financing conditions, EUR/ILS currency transfers, and cities favored by the Portuguese community. In short, everything you need to know to buy with peace of mind, without unpleasant surprises.

The purchase process is the same for all non-residents: selecting the property via IsraelStart, appointing a real estate lawyer in your language, setting up the power of attorney, and turnkey support until you receive the keys. The difference? Tax nuances, fund transfer procedures, and local community networks.

Portugal-Israel Tax Treaty: Avoiding Double Taxation

The 2006 Portugal-Israel tax treaty follows the standard OECD model. A significant advantage: the Portuguese NHR (Non-Habitual Resident) status, although modified in 2024, can still offer tax benefits on foreign income for certain profiles. A Portugal-Israel tax specialist is recommended.

The treaty provides for tax credit mechanisms that neutralize double taxation. In practice: you pay tax in Israel on your real estate income (flat rate 10%, actual 15%, or progressive), then you declare this income in your country of residence with a corresponding tax credit. You never pay twice.

Real estate capital gains (Mas Shevach, 25% in Israel) are treated according to the same principle. Your lawyer and a specialized tax advisor coordinate the declarations in both countries to optimize your overall tax burden.

Note: Failure to declare a foreign bank account may result in penalties in most countries. Make sure to declare your Israeli account to your tax authorities.

Financing: mashkanta for Non-Resident Portuguese

Portuguese applicants benefit from the European banking infrastructure: fast and low-cost SEPA transfers, documents compliant with EU standards. Israeli banks process these files within the standard timeframe of 3-5 weeks.

Standard conditions for non-residents apply: minimum down payment of 50% (LTV 50%), rates between 4.5% and 6.5% depending on the track type, maximum term of 25 years (limited by the borrower's age). The file includes the last 3 balance sheets or payslips, tax notices, bank statements, and the purchase contract.

Example: a 42-year-old Portuguese buying a 3-room apartment in Netanya for ₪1,800,000. Down payment: ₪900,000. Mashkanta: ₪900,000 over 20 years, fixed rate 5.3%. Monthly payment: ₪6,100. Estimated rent: ₪5,500/month. Monthly cash flow: -₪600 — offset by an estimated annual appreciation of ₪90,000.

The mashkanta broker contacted by IsraelStart compares 3 to 5 banks and negotiates the best conditions. Documents must be translated into Hebrew or English by a sworn translator. The time between submitting the complete file and receiving a firm offer is 3 to 6 weeks.

EUR/ILS Fund Transfers: Optimize Your Exchange

Transferring funds from Portugal to your Israeli bank account is a critical step that can cost—or save—you thousands of euros. The typical bank spread (the difference between the interbank rate and your bank’s offered rate) ranges from 1% to 3% depending on the bank.

For a purchase of ₪2,000,000 (about €500,000 at the current rate), a 2% spread means an extra cost of €10,000. That’s significant! Alternative solutions: Wise (formerly TransferWise) with spreads of 0.3–0.5%, specialized currency brokers (OFX, CurrencyFair) for large amounts, and direct negotiation with your bank’s currency desk (possible for transfers over €100,000).

Our recommendation: compare at least 3 exchange options before each transfer. Split transfers if the rate is volatile. And plan your transfers 2–3 weeks before the payment date to avoid time pressure.

Cities Favored by Portuguese Buyers in Israel

Portuguese buyers are drawn to Tel Aviv (vibrant, startup nation), Jerusalem (Sephardic historical significance), and Netanya (affordability, beachfront). Dual Portuguese-Israeli citizenship is common among Olim of Sephardic origin.

No matter which city you choose, IsraelStart lists over 300 new developments across Israel — Tel Aviv, Jerusalem, Netanya, Haifa, Herzliya, Beer Sheva, Ashdod, and many more. Our city comparison helps you identify the ideal destination based on your budget, investment goals, and community preferences.

Purchase Procedure: Steps for a Portuguese Buyer

The process is structured and predictable. Step 1: you fill out the personalized IsraelStart assessment (5 minutes online). Step 2: an advisor in your language presents 3-5 projects matching your criteria. Step 3: you appoint a lawyer (IsraelStart connects you). Step 4: consular or notarial power of attorney in your country. Step 5: open a bank account in Israel. Step 6: sign the contract and make the first payments. Step 7: construction follow-up and delivery.

The entire process can be managed from Portugal, via WhatsApp, email, and video conference. You do not need to travel to Israel before delivery. The turnkey support from IsraelStart covers every step, from A to Z, in your language.

Common Mistakes Made by Portuguese Buyers

Three mistakes are frequently seen among Portuguese buyers who purchase without guidance.

Mistake #1: Not checking the bilateral tax treaty before buying. Each country has its own specifics—do not assume that French rules apply to your situation.

Mistake #2: Using a standard bank transfer without comparing exchange rates. On a purchase of 2 million shekels, the difference between a regular bank transfer and an optimized service can reach €5,000 to €10,000.

Mistake #3: Neglecting to declare your Israeli bank account in your home country. Most countries require you to declare accounts held abroad. Failure to comply can result in significant fines.

The IsraelStart support covers these tax and administrative aspects for each nationality, with a network of lawyers and tax experts familiar with your country's bilateral agreements.