What Is Mas Rechisha (Purchase Tax) in Israel?

Q: What Is Mas Rechisha (Purchase Tax) in Israel?

Mas Rechisha (מס רכישה) is Israel's property purchase tax, paid by the buyer on every transaction and declared to the Israel Tax Authority via Form 7000 within 30 days of signing. As a foreign buyer (non-resident), you pay a flat 8% on the portion of the price up to 6,055,070 ILS, and 10% on anything above that — from the first shekel, with no zero-rate band. Israeli residents buying their only home get a progressive rate starting at 0%; new Olim get a reduced rate of 0.5% up to 1,994,175 ILS. Why it matters for a buyer: for overseas buyers, Mas Rechisha typically runs 8–10% of the full price — one of the largest closing costs, and one you must budget for before signing, not after. Source: Land Taxation Law (Appreciation and Acquisition) 5723-1963; Israel Tax Authority (רשות המסים)

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Mas Rechisha (מס רכישה) is Israel's property purchase tax, paid by the buyer on every transaction and declared to the Israel Tax Authority via Form 7000 within 30 days of signing.

As a foreign buyer (non-resident), you pay a flat 8% on the portion of the price up to 6,055,070 ILS, and 10% on anything above that — from the first shekel, with no zero-rate band. Israeli residents buying their only home get a progressive rate starting at 0%; new Olim get a reduced rate of 0.5% up to 1,994,175 ILS.

Why it matters for a buyer: for overseas buyers, Mas Rechisha typically runs 8–10% of the full price — one of the largest closing costs, and one you must budget for before signing, not after.

Source: Land Taxation Law (Appreciation and Acquisition) 5723-1963; Israel Tax Authority (רשות המסים)

What Is Mas Rechisha (Purchase Tax) in Israel?

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