How does land ownership work in Israel?

How land ownership and leaseholds work in Israel

• Approximately 93% of land in Israel is state-owned and managed by the Israel Land Authority (ILA).
• When buying an apartment on ILA land, you purchase leasehold rights — a long-term lease typically for 49 years, extendable for another 49 years.
• Leasehold functions like full ownership in practice: you can sell, renovate, and pass it on; the ILA is a silent landlord you rarely interact with.
• Lease extension is typically a low-cost, routine formality handled by your lawyer at the time.
• The remaining ~7% of land is privately owned freehold — buying on this land means you also own a proportionate share of the land itself.
• Your lawyer determines leasehold vs. freehold during the Tabu (Land Registry) due diligence stage.
• For the average buyer, leasehold vs. freehold has minimal practical impact on daily use or property value.
• Bottom line: Most Israeli property is bought as a 49-year leasehold from the ILA, which works like full ownership for all practical purposes — your lawyer’s Tabu check confirms the title type.

Have questions about how leasehold vs. freehold affects your specific purchase in Israel? Get a clear answer from our real estate experts.

Quick answer: Most Israeli land is not private freehold, but buyers can still hold strong rights when the ILA lease, Tabu registration, and transfer terms are clean. Next step: buying property in Israel or land-buying guide.

Understanding land ownership in Israel is crucial because it’s fundamentally different from the system in many other countries. When you “buy” an apartment, you’re often not buying the land itself. This sounds strange, but in practice, it works seamlessly.

The vast majority of land in Israel—around 93%—is owned by the state. This is managed by the Israel Land Authority (ILA). When a developer builds an apartment project on this land, they don’t buy it outright. Instead, they get a long-term lease, typically for 49 years, with an option to extend for another 49 years.

When you buy an apartment in that building, you are actually purchasing the rights to that long-term lease. This is called a leasehold. For all practical purposes, it functions just like full ownership. You can sell it, renovate it, and pass it down to your children. The ILA is a silent landlord you’ll likely never interact with. The process of extending the lease is usually a simple, low-cost formality handled by your lawyer when the time comes.

The other 7% of land is privately owned, just like you’d find in the United States or Europe. When you buy a property on this land, you are buying the apartment and a share of the land it sits on. This is called freehold.

So how do you know which one you’re buying? Your lawyer will tell you. During the due diligence process, they will check the Tabu (Land Registry) to see if the property is registered as a leasehold from the ILA or as a privately owned freehold property. For the average buyer, the distinction has very little impact on your day-to-day life or the value of your home. The key is that your rights are clearly and legally registered, which is your lawyer’s main job.

Israeli land tenure and leasehold rights: the essentials

• Most land in Israel (93%) is state-owned and managed by the Israel Land Authority (ILA).

• When you buy property on this land, you are typically getting a leasehold—a long-term lease (often 49+ years) that functions like full ownership.

• A smaller portion of land (7%) is privately owned, and buying on it gives you freehold ownership.

• Your lawyer will verify the land type during the purchase process, but for homeowners, the practical difference between the two is minimal.

Confused about leaseholds? I can explain it with a simple cup of coffee. DM me at Semerenko Group.