Mortgages Question # 2

Contributor: Ezra Sharfman, Former Banker & CEO of Israeli Golden Assets

🏠 What Additional Expenses Should You Consider When Buying Property in Israel?

One of the most common mistakes buyers make is focusing only on the property price without considering the additional expenses.

So how much should you budget?

As a general rule of thumb:

🇮🇱 New Olim and Israeli First-Time Buyers – Around 5%, depending on eligibility for tax benefits.

🌎 Foreign Residents – Approximately 13% on top of the purchase price.

What do these expenses include?

* Purchase Tax (Mas Rechisha) – can be the largest additional expense or the lowest.
* Legal & Brokerage Fees – Attorneys and real estate agents.
* Mortgage-Related Costs – Consulting, appraisal, and bank fees.
* Currency Exchange & Money Transfers – Particularly for overseas buyers.
* Other Professional Services – Property inspections and engineering assessments.

For example, on a ₪3,000,000 property:

🇮🇱 New Oleh / Israeli First-Time Buyer:
Property price: ₪3,000,000
Additional expenses (5%): ₪150,000
Total estimated budget: ₪3,150,000

🌎 Foreign Resident:
Property price: ₪3,000,000
Additional expenses (13%): ₪390,000
Total estimated budget: ₪3,390,000

⚠️ These are general estimates. Actual expenses depend on residency status, tax benefits, and the specific transaction.

That's why understanding your total budget before starting your property search is so important.

Know your total budget before you start searching.

To learn more about our contributor, see Ezra's link here:  https://olimfavorites.com/listing/israel-real-estate-mortgage-services/

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