Of course. Providing pricing in Canadian dollars and giving you a clear, “all-in” picture of the costs is essential for any serious international buyer. The Israeli real estate market can be opaque, especially when it comes to the various taxes and fees involved in a purchase. Our goal is to bring clarity and transparency to this process.
When you see a property listed in shekels, it’s easy to do a basic currency conversion. As of today, the exchange rate is approximately 2.75 shekels to 1 Canadian dollar. So, a ₪2,000,000 apartment would be roughly CAD $727,000.
However, that’s just the beginning of the story. To get to the “all-in” price, you need to factor in several additional costs:
-
Purchase Tax (Mas Rechisha): This is the most significant additional cost. For an international buyer, this tax is calculated on a sliding scale, starting at 8% of the purchase price. There are no exemptions for foreign residents.
-
Legal Fees: You will need an Israeli lawyer to represent you in the transaction. Legal fees are typically between 0.5% and 1.5% of the purchase price, plus VAT.
-
Real Estate Agent’s Commission: The standard commission for a buyer’s agent is 2% of the purchase price, plus VAT.
-
Other Fees: There are also smaller fees for things like a building inspection, appraisal, and registration of the property.
So, for our ₪2,000,000 apartment, the all-in price in Canadian dollars would look something like this:
-
Purchase Price: CAD $727,000
-
Purchase Tax (approx. 8%): CAD $58,160
-
Legal Fees (approx. 1% + VAT): CAD $8,500
-
Agent’s Commission (2% + VAT): CAD $17,000
-
Estimated All-In Price: CAD $810,660
This is an estimate, of course, and the exact figures will vary. But it gives you a much more realistic understanding of the true cost of buying a property in Israel. We believe in providing our clients with this level of detail from the very beginning, so there are no surprises down the road.
Too Long; Didn’t Read
-
We can provide all pricing in Canadian dollars and calculate an “all-in” cost.
-
The current exchange rate is roughly 2.75 shekels to 1 CAD.
-
“All-in” pricing must include purchase tax (starting at 8% for foreign buyers), legal fees, and agent commissions.
-
A ₪2,000,000 property would have an estimated all-in cost of approximately CAD $810,660.
