Fees & Expenses
When buying a property in Israel it is important to understand that, unlike in some other countries, in Israel the purchase price of the property is 100% paid to the seller; all other additional fees have to be added on-top of that purchase price. Some of the fees are a direct correlation to the purchase price where others are fixed and depend on the service provider.
Tax, Agent & Lawyer Fees
Purchase Tax – There are different rates which are progressive. In order to understand the complexities involved as to purchase tax, please go to our Tax Calculator Page.
Agent Fees is 2% of purchase price + VAT; the fee goes directly to your agent representing you in the process. The other agent represented by the owner is paid separately by the owner.
Lawyer Fees depends on your choice of attorney. The fee can be anything between 0.5%-2% of purchase price + VAT. The price depends on the size of the firm and the type and duration of the deal – construction, 2nd hand, land, future rights. It is highly suggested to ask your real estate agent to recommend the correct lawyer for your deal.
Mortgage Consultant – When you use the bank’s mortgage consultants its “free” of charge. But remember the bank’s consultants work for the bank. We suggest a private mortgage consultant which looks out for you needs and personal benefits. This should cost between 8,000-15,000 NIS, but will likely save you a lot more than that on your mortgage.
Appraiser Fee- not always necessary when you work with a professional real estate agent, but if you do need one, it should cost between 6K to 12K NIS
Home Inspection – again, not always necessary, but sometimes extremely necessary. Home inspection should cost between 8,000 to 16,000 NIS depending on the size of the property.
Kitchen Appliances & Light Fixtures – This can be mind blowing for some of you, but in Israel an apartment is sold empty. Meaning you literally only buy the location, size, and number of rooms. If you agree with the seller that anything such as kitchen appliances or light fixtures or even AC units stay you must have that covered in the contract. And if not, take these items into account when planning your budget.
Currency Transfer Fee – If you are in need of a money transfer, make sure you negotiate your currency rate with the banks, and shop around. It is possible to save a significant amount of money by making the right currency transfer choice.
Contractor – If you are buying a secondhand apartment, you will most likely receive it as is. There may be a need to bring in a contractor for painting or for additional minimal renovations. These prices vary greatly according to what needs to be done.
The content of this page should not be construed as consultation and/or a professional opinion. Please consult a real estate broker for further consultation.
Make sure to consult with your real estate agent before committing to any of the expenses listed above.