Should I rent or buy when arriving in Israel?

Our advice: rent 6 to 12 months before buying. A neighborhood is lived, not guessed during a trip. Renting lets you test the community, schools and commutes before an informed purchase.

What is the Mas Rechisha?

The Mas Rechisha is the property purchase tax. Olim benefit from the Takana 12 bracket: 0.5% up to ~1.99M ₪ then 5%, versus 8-10% for a foreign buyer. On a 2M ₪ property, the saving exceeds 140,000 ₪.

What are real estate prices in Israel?

Indicatively: Tel Aviv center 35,000-55,000 ₪/m², Jerusalem center 25,000-45,000 ₪/m², Netanya seaside 20,000-35,000 ₪/m², Beer Sheva/periphery 8,000-15,000 ₪/m² (CBS data, to be confirmed).

Housing – Aliyah Israel | Kings David Home

The Israeli real estate market is characterized by high demand and supply shortage, particularly in coastal metropolitan areas. Whether you are looking to rent while settling in or to purchase your primary residence, understanding local specifics is essential to avoid pitfalls and make the right choice.

Renting in Israel

Standard lease

The "Chiur Megunam" lease

Most rentals use the standardized "chiur megunam" model. Typical duration: 12 months renewable.

Deposit: 1–3 months rent (blocked checks or bank guarantee)
Vaad Bayit (building charges): ₪200–500/month on average
Arnona (municipal tax): tenant's responsibility
Contract often in Hebrew — get a translation before signing

Landlords

Rental income exemption threshold (landlords)

Landlord-lessors benefit from a monthly tax exemption threshold on rental income received.

Tax-exempt threshold: ₪5,654/month
Beyond that: degressive taxation or flat 10%

⚠️ Source: Rashut HaMisim. Official protected figure.

Rental assistance — Sal Klita

The absorption basket (Sal Klita) includes monthly financial assistance in the first months after Aliyah.

Single person: approx. ₪1,600–2,200/month (indicative)
Couple with children: higher amount
Duration: approx. 12 months after Aliyah

⚠️ Amounts to confirm directly at Misrad HaKlita (*2994 / klita.gov.il).

Finding housing

Recommended platforms:

Yad2 (yad2.co.il) — national reference
Homely.co.il — oriented to English/French speakers
Facebook: "Anglophones Tel Aviv", "Aliyah Housing" groups
Licensed real estate agents (dakadakim) approved by Misrad HaMishpatim

Buying real estate

Aliyah advantage

Oleh benefit — Mas Rechisha

Olim benefit from the Takana 12 bracket: 0.5% up to ~₪1.99M then 5%, far more favorable than the foreign bracket (8–10%). Valid 7 years.

On a ₪2M property: saving > ₪140,000 vs. foreign bracket
See the Taxation topic for full details

Mortgage (Mashkanta)

The Israeli loan is structured in tranches: fixed (Kvoua), variable (Prime ± margin) and indexed (Madad / CPI).

Minimum down payment: 25% for residents
Variable rate = Prime rate (5.25%) ± margin
Maximum term: 30 years

⚠️ BoI rate on 25/05/2026: 3.75%. Source: bankofisrael.org.il.

Purchase procedure

Key steps:

1. Zikron Dvarim (memorandum of understanding)
2. Due diligence — Tabu / Minhal verification
3. Chtar Mechira (deed of sale)
4. Mas Rechisha payment to Rashut HaMisim
5. Final registration at the Tabu

⚠️ A specialized Israeli real estate lawyer is essential.

Market trends 2025

Indicative price per m²:

Tel Aviv center: ₪35,000–55,000/m²
Jerusalem center: ₪25,000–45,000/m²
Netanya seaside: ₪20,000–35,000/m²
Beer Sheva / periphery: ₪8,000–15,000/m²

⚠️ Indicative CBS / local agency data — to be confirmed. Quarterly update recommended.

Your Mas Rechisha calculated to the last shekel

Section 4 displays CBS price per m² by selected city and calculates your exact Mas Rechisha on your budget. In Patrimonial: should you sell your French residence before or after Aliyah?

✓ Real estate prices per m² by city — CBS 2025-2026 data (section 4)
✓ Oleh Mas Rechisha calculated on your actual real estate budget (section 4)
✓ Mashkanta — conditions and monthly payments by down payment (section 5)

Calculate my Mas Rechisha →

Premium $299 · Patrimonial $399 · Delivered within 24h