Navigating the Israeli property market—particularly in a thriving city like Tel Aviv—requires an understanding of local regulations, tax obligations, and legal frameworks. For non-residents and foreign investors, grasping these essentials is key to making informed decisions. Here’s a breakdown of what you need to know:

Can Foreigners Buy Property in Tel Aviv?

• Yes. Israel allows non-residents to purchase real estate, including apartments, condominiums, and commercial spaces.
• Key Considerations:
  • Verify the seller’s clear title.
  • Confirm that all municipal fees are paid.
  • Consult professionals to address documentation and avoid unexpected hurdles.

Legal Structure & Property Rights

• Registration: Property ownership is recorded in the Israel Land Registry (Tabu), making the buyer the official owner upon completion of the transaction.
• Leasehold Properties: Many properties are on land managed by the Israel Land Authority (ILA) and require:
  • Ground lease fees.
  • Review of lease renewal terms.
• A licensed real estate lawyer can explain these obligations and secure your rights.

Municipal Regulations & Arnona (Property Tax)

• Arnona: This municipal tax applies to both residents and non-residents, calculated based on:
  • Property size (in square meters).
  • Designated use (residential or commercial).
• Rates: Vary by neighborhood and property type, ranging from 50 to 85 NIS per square meter for residential properties in Tel Aviv.

Payment Schedules and Discounts

• Payment: Arnona is paid in six bi-monthly installments and can be settled:
  • Online, via credit card.
  • At the postal bank.
  • In person at the Municipal Service Center on Even Gvirol Street.
• Discounts: Available for eligible groups, including:
  • New immigrants.
  • Senior citizens.
  • Single-parent families.
  • Disabled residents.
  • Soldiers.
• Eligibility documentation must be submitted to the municipality.

Upcoming Changes to Property Tax

• Effective January 1, 2025:
  • Tel Aviv will increase property tax rates by approximately 8.8%, influenced by large-scale projects like the Metro rail system.
  • Tip: Consult a real estate attorney to understand the implications for your investment.

Engaging Legal Counsel & Professional Guidance

• Navigating the Tel Aviv real estate market independently is possible but not recommended. A reputable law firm can:
  • Verify titles and handle registration.
  • Draft and review contracts.
  • Advise on taxes and help secure discounts.
  • Represent you during negotiations and closing.
• Legal representation ensures compliance with local laws and protects your long-term interests.

Why Understanding Local Law Matters

• A strong grasp of Israel real estate law empowers you to:
  • Evaluate properties confidently.
  • Anticipate expenses like Arnona.
  • Make informed decisions about legal representation and documentation.

Conclusion

Tel Aviv remains a prime destination for foreign investment in real estate. By securing expert legal advice, staying updated on municipal tax regulations, and planning for future changes, non-residents can navigate the property market effectively, safeguarding their interests and maximizing the potential of this dynamic market.