French residents buying in Israel: IFI, forms 2044, 2047 and 3916, and the Israeli side
A French tax resident can buy property in Israel freely; Israel has no residency requirement and France has no exchange control on transfers. According to Semerenko Group’s CRM, 35 client records come from France (18 October 2026), with Tel Aviv and Netanya the most requested places. What differs for a French buyer is at home: the IFI wealth tax counts real estate abroad once net taxable real estate passes EUR 1.3 million, Israeli rent is declared on forms 2044 and 2047 with a credit under the 1995 France-Israel treaty, the Israeli bank account goes on form 3916, and French apostilles are now issued by notaires.
What is different for a buyer from France
Tax and reporting at home
- IFI (impôt sur la fortune immobilière). Households with net taxable real estate above EUR 1.3 million pay the IFI (impots.gouv.fr), and a person tax-domiciled in France is liable on taxable property in France or abroad (BOFiP, version in force from 08/06/2018); the schedule is 0% up to EUR 800,000, so the tax is computed on the slice above that once the threshold is crossed (impots.gouv.fr). An Israeli apartment counts towards the threshold.
- Rent. A French resident declares rent collected abroad on form 2044 (or micro-foncier), with the amounts also on the 2042 and the 2047 (impots.gouv.fr notice 2047). Under Article 6 of the France-Israel treaty, income from real estate is taxable in the state where the property is (treaty text, PDF 2019 edition), and Article 23 gives the French resident a credit equal to the French tax on that income (treaty text, PDF 2019 edition).
- Form 3916. The Israeli bank account you open for the purchase is declared on form 3916 / 3916 bis with the annual return (impots.gouv.fr); the fine for an undeclared account is EUR 1,500, or EUR 10,000 where the state has no assistance agreement (form 3916).
- Selling later. A French resident who sells real estate abroad files form 2048-IMM within a month if the gain is not exempt in France, and reports it on the 2047 and 2042 (impots.gouv.fr, published 21/08/2026); under Article 13 of the treaty the gain is taxable in the state where the property is (treaty text, PDF 2019 edition), with the credit mechanism applying in France.
- Treaty. The France-Israel tax convention was signed in Jerusalem on 31 July 1995 and entered into force on 18 July 1996 (impots.gouv.fr, document header (PDF 2019 edition)).
Documents
- Apostille. Since 1 May 2025 French apostilles are issued by notaires, no longer by the appeal-court prosecutors (service-public.gouv.fr, published 3 June 2025). Israel has been a party to the Apostille Convention since 1978, so a French notarised power of attorney with an apostille is accepted.
- Power of attorney and identity. Your Israeli lawyer prepares the power of attorney (Hebrew with a French or English translation); you sign before a notaire, who adds the apostille, or at the Israeli consulate. Passport copies, proof of address and the paper trail of the funds go to the Israeli bank.
Money transfer
- Bank transfers from France to Israel are free of exchange control; only physical cash of EUR 10,000 or more crossing the EU border must be declared to customs (douane.gouv.fr). The euro to shekel conversion is the real cost; compare your bank with a transfer service using the tools above.
What is the same for every buyer from abroad
Anyone can own an apartment in Israel; there is no citizenship or residency requirement for buying a home. Three things decide what a buyer from abroad pays and can borrow: the purchase tax bracket (set by whether the buyer is an Israeli resident, an oleh, or neither), the Bank of Israel lending ceiling, and the exchange rate on the day the money moves.
Purchase tax
| Buyer | Price band | Rate on that band |
|---|---|---|
| Israeli resident, only home | ₪0 to ₪1,978,745 | 0% |
| Israeli resident, only home | ₪1,978,745 to ₪2,347,040 | 3.5% |
| Israeli resident, only home | ₪2,347,040 to ₪6,055,070 | 5% |
| Israeli resident, only home | ₪6,055,070 to ₪20,183,565 | 8% |
| Israeli resident, only home | above ₪20,183,565 | 10% |
| Foreign resident, or an additional home | ₪0 to ₪6,055,070 | 8% |
| Foreign resident, or an additional home | above ₪6,055,070 | 10% |
| New immigrant (oleh), home bought within the benefit window | ₪0 to ₪1,978,745 | 0% |
| New immigrant (oleh), home bought within the benefit window | ₪1,978,745 to ₪6,055,070 | 0.5% |
| New immigrant (oleh), home bought within the benefit window | ₪6,055,070 to ₪20,183,565 | 8% |
Israel Tax Authority brackets for 16 January 2026 to 15 January 2027 as held in Semerenko Group’s fact registry, verified 2026-10-16. The oleh table above ₪20,183,565 is not in our registry; the Tax Authority directive governs. The tax is cumulative: each band is taxed at its own rate.
The brackets, the oleh benefit and a calculator that applies them are on the purchase tax page and in the purchase tax and closing-costs calculator.
Financing
Bank of Israel Directive 329 caps a housing loan at 75% of value for a sole dwelling, 70% for a replacement dwelling and 50% for an investment dwelling (Bank of Israel, verified 2026-10-16). A buyer who is not an Israeli resident is generally financed inside the 50% ceiling; the rest is equity. Repayments on all debt may not exceed 50% of income. The Bank of Israel policy rate is 3.25% and prime is 4.75% (registry, 2026-10-18). Details and the bank process for buyers abroad: mortgages for foreign buyers and the foreign buyer mortgage guide; capacity by income and equity: mortgage capacity and budget planner.
Worked example in euros
| Item | ILS (euros at the Bank of Israel rate) |
|---|---|
| Purchase price | ₪2,500,000 (€719,000) |
| Purchase tax as a foreign resident (8% band) | ₪200,000 (€57,500) |
| Purchase tax if the buyer were a new immigrant (oleh) inside the benefit window | ₪2,606 (€750) |
| Purchase tax if the buyer were an Israeli resident buying an only home | ₪20,538 (€5,910) |
| Largest bank loan at the 50% ceiling for an investment or non-resident purchase (Bank of Israel Directive 329) | ₪1,250,000 (€360,000) |
| Equity the buyer brings (price minus the 50% loan) | ₪1,250,000 (€360,000) |
| Semerenko Group buyer fee, 2% plus 18% VAT | ₪59,000 (€17,000) |
| Cash needed before lawyer, registration and bank fees | ₪1,509,000 (€434,000) |
Bank of Israel representative rate of 2026-10-16: 1 EUR = ₪3.4769. ₪2,500,000 is the median purchase budget our clients abroad gave us (Semerenko Group CRM, October 2026). Lawyer, registration, appraisal and bank fees are not included because they are quoted per deal; enter them in the closing-costs calculator.A bank may lend less than the ceiling. The ceiling for an Israeli resident’s only home is 75%.
Money transfer and the Israeli bank
The money for a purchase reaches the seller through an Israeli bank or the lawyer’s trust account. Israeli banks ask for source-of-funds documents before accepting a large transfer from abroad; our source of funds letter generator prepares the explanation, and the SWIFT wire cost estimator and FX break-even calculator show what the transfer and the exchange rate cost. Conversions on this page use the Bank of Israel representative rate of 2026-10-16; the rate you get is set by whoever converts the money.
Where buyers from France ask us to search
Semerenko Group’s CRM holds 35 client records from France (18 October 2026). Of the 33 who named a place, the most requested were Tel Aviv (17), Netanya (4), Beit Shemesh (2), Anywhere in Israel (2), Ashkelon (1). 8 came to buy or invest and 19 to rent, including short stays. Counts only; no personal details are published. Method and the full table: Anglo Buyer Demand Index.
Community matters as much as price for most families: see the neighbourhoods by community (hashkafa) index.
How buying from France works with us
- Brief. Budget in your currency and in shekels, the cities or neighbourhoods, rooms, must-haves, and your timeline. We check the budget against recorded sales before searching.
- Search and options page. We search every listing source and build a private options page with prices, sizes, photos and the facts we could verify. You choose what to see.
- Viewings. In person when you are in Israel, by video when you are not. The buying process page explains each step.
- Offer, lawyer, contract. An Israeli real estate lawyer represents you; a notarised and apostilled power of attorney lets the lawyer sign for you when you are abroad. Guide: the purchase lawyer.
- Financing and transfer. Mortgage approval if you borrow, then the staged payments through the lawyer’s trust account.
- Tax and registration. Purchase tax is reported and paid after signing; the property is registered in the Land Registry (Tabu) or with the relevant registry. Guide: registering property in Israel.
Our buyer fee is 2% plus VAT on a purchase, paid at closing; everything else we do before that is free. Full terms: how Semerenko Group gets paid.
Frequently asked questions
Can a French resident buy an apartment in Israel?
Yes. Israel has no residency requirement for buying a home and France has no exchange control on transfers. A non-resident pays Israeli purchase tax at the foreign-resident brackets and is generally financed by Israeli banks within the 50% Bank of Israel ceiling for investment purchases.
Does an apartment in Israel count for the French IFI?
Yes for a person tax-domiciled in France: the IFI covers taxable real estate in France and abroad once the household’s net taxable real estate exceeds EUR 1.3 million (impots.gouv.fr, BOFiP).
How much Israeli purchase tax does a French buyer pay on a ₪2,500,000 apartment?
As a foreign resident, ₪200,000 at the 8% first band in force until 15 January 2027, about €57,500 at the Bank of Israel rate of 2026-10-16.
Where do I declare rent from an Israeli apartment in France?
On form 2044 (or micro-foncier), with the amounts carried to the 2042 and the 2047. Under the 1995 France-Israel treaty the rent is taxable in Israel and France gives a credit equal to the French tax on it.
Related pages
- French Jewish buyers in Israel: Netanya and coastal homes
- Netanya real estate
- Can a foreigner own property in Israel?
- Mortgages for foreign buyers
- Documents to buy property in Israel
- All international buyer hubs
Sources
- Israel Tax Authority purchase tax directive (fact registry), as of 2026-10-16
- Bank of Israel Directive 329 (fact registry), as of 2026-10-16
- Bank of Israel representative exchange rates, as of 2026-10-16
- impots.gouv.fr – Calcul de l’IFI, as of published 09/02/2018, last modified 08/04/2026
- BOFiP BOI-PAT-IFI-10-20-20, as of version in force from 08/06/2018
- impots.gouv.fr – notice 2047-NOT (income of 2025), as of notice revenus 2025
- impots.gouv.fr – Convention avec Israël (text), as of document header (PDF 2019 edition)
- impots.gouv.fr – Convention avec Israël (text), Article 6, as of PDF 2019 edition
- impots.gouv.fr – Convention avec Israël (text), Article 23, as of PDF 2019 edition
- impots.gouv.fr – declare accounts and life insurance held abroad, as of published 01/09/2016, last modified 10/03/2026
- impots.gouv.fr – form 3916 (2025 edition) notice, as of form file dated 2025
- impots.gouv.fr – I sell real estate abroad: is the gain taxable in France?, as of published 21/08/2026
- impots.gouv.fr – Convention avec Israël (text), Article 13, as of PDF 2019 edition
- service-public.gouv.fr – news item A18240 (English), as of published 3 June 2025
- douane.gouv.fr – travelling with cash
- Semerenko Group CRM, client counts only, as of 2026-10-18
This is general information, not legal or tax advice; confirm with a licensed professional.
Verified 2026-10-18 by Chaim Semerenko, Semerenko Group; brokerage under broker of record Pinchas Menachem Reis, licence 324150.
