Israeli real estate operates on a Hebrew-language legal vocabulary that most foreign buyers encounter for the first time mid-transaction, frequently after they have already committed. Twelve terms recur on every Israeli purchase, and a working understanding of each is the difference between informed buying and trusting your attorney to translate jargon on the fly. The glossary below covers the twelve essential terms, organized by transaction phase. Each entry has a short answer, a full definition, a section on what the term means specifically for foreign buyers, and primary sources for further reading.
Tax & Legal
Purchase Tax
Mas Rechisha
מס רכישה
Israel's real estate purchase tax. Foreign buyers pay 8 to 10 percent. Olim get reduced brackets.
Capital Gains Tax
Mas Shevach
מס שבח
Israel's capital gains tax on real estate sales. Foreign sellers pay 25 percent on real gain.
New Immigrant Tax Relief
Oleh Chadash Purchase Tax
מס רכישה לעולים חדשים
Reduced Mas Rechisha brackets for new immigrants within 7 years of Aliyah.
Municipal Property Tax
Arnona
ארנונה
Israel's annual municipal property tax. Set by each city. Typical Tel Aviv luxury apartment: $1,500-$4,000/year.
Property & Title
Land Registry
Tabu
טאבו
Israel's official Land Registry. Ownership transfers only on Tabu registration.
Cautionary Note
He'arat Azhara
הערת אזהרה
The buyer's protective notation at the Tabu, registered within 30 days of signing.
Building Completion Certificate
Tofes 4
טופס 4
The municipal certificate required for legal occupancy of new construction.
Building Committee
Va'ad Bayit
ועד בית
Israel's statutory building committee. Monthly fees typically $100-$400 in premium towers.
Off-Plan & Banking
Bank Guarantee
Arvut Bankit
ערבות בנקאית
The bank-issued guarantee that secures every off-plan buyer payment under Sale Law 1974.
Bank-Supervised Financing
Livui Bankai
ליווי בנקאי
The bank's supervisory role over developer construction financing on off-plan projects.
Sale Law of Apartments
Chok HaMecher
חוק המכר
Israel's 1973 and 1974 statutes governing off-plan apartment sales and buyer protection.
Construction Input Index
Madad
מדד תשומות הבנייה
The construction-cost inflation index that links off-plan unpaid balances.
Calculate Your Mas Rechisha
The single largest line item in most foreign-buyer transactions is Mas Rechisha (purchase tax). The Ascend calculator covers foreign buyer, investor, resident first home, and Olim Hadashim brackets, with results in NIS, USD, EUR, and GBP, using a live mid-market exchange rate from the European Central Bank.
About This Glossary
This glossary is maintained by Ascend Israel Properties, a US-based buyer's agency that helps international buyers from the US, Canada, UK, France, and Europe purchase property in Israel legally and safely. Ascend was founded by Netanel Hershtik, a transactional attorney admitted to the New York State Bar with an LLB in Israeli law and an International LLM from the University of Miami. Ascend partners with Hagai Adoram, Managing Partner of Adoram & Co. and co-chair of the Tel Aviv Bar Association Real Estate Committee, who reviews every glossary entry against current Israeli legal practice.
The glossary is informational and does not constitute legal or tax advice for any specific transaction. Israeli real estate law evolves; verify current rules with qualified Israeli counsel before relying on any specific figure or rule.
Reviewed by Hershtik & Adoram, May 2026.