Buying property in Israel from South Africa: what is actually different

A South African resident can buy property in Israel, but unlike buyers from the United States or the UK the money leaves under exchange control: the single discretionary allowance and the R10 million foreign investment allowance, the latter only with a SARS tax compliance (Approval for International Transfer) PIN. At home, South African residents are taxed on worldwide income, including Israeli rent, with the section 6quat rebate for Israeli tax, and capital gains on foreign property enter taxable income at the 40% inclusion rate. In Israel the rules are the same as for any foreign buyer: non-resident purchase tax brackets and the 50% Bank of Israel loan ceiling.

R10 millionforeign investment allowance per calendar year (SARS, SARB)

8%purchase tax on the first band for a non-resident

50%Bank of Israel loan ceiling, investment or non-resident purchase

₪0.1881per rand, Bank of Israel rate of 2026-10-16

What is different for a buyer from South Africa

Exchange control: getting the money out

Single discretionary allowance. The South African Reserve Bank’s Financial Surveillance FAQ states a single discretionary allowance of up to R1 million per calendar year with no tax clearance (SARB FinSurv FAQ). SARS’s Budget 2026 FAQ says the allowance doubles to R2 million (SARS Budget 2026 FAQ); the effective date is on the SARS page and your bank applies the figure in force on the day.
Foreign investment allowance. Up to R10 million per calendar year may be invested outside the Common Monetary Area (SARB FinSurv FAQ), with a SARS tax compliance status PIN for the Approval for International Transfer (SARS Budget 2026 FAQ). The AIT application replaced the Emigration and Foreign Investment Allowance application types on 24 April 2023 (SARS, 24 April 2023); the form is the TCR01 (SARS, Last updated 29/08/2025). Most Israeli purchases are paid from this allowance, in stages that match the contract.

Tax at home

Rent. South African residents are subject to income tax on worldwide taxable income regardless of source (SARS Interpretation Note 18); section 6quat(1) is the principal relief for foreign taxes proved payable on that income (SARS, Issue 5, 9 December 2022).
Selling later. For natural persons the capital gains inclusion rate is 40% (SARS guide, Issue 9, 2027 year of assessment), after an annual exclusion of R50,000 for the 2027 year of assessment (R40,000 in 2026) (SARS guide, Issue 9, 2027 year of assessment); residents are liable for CGT on assets inside and outside South Africa (SARS, Last Updated 19/08/2026).
Treaty. SARS lists a South Africa-Israel double taxation agreement (Government Gazette 6577) (SARS DTA list, Last updated 01/10/2026); it decides which country taxes rent and gains first and how relief is given.

Documents

Apostille. South Africa has been a party to the Hague Apostille Convention since 30 April 1995 (HCCH status table); for convention countries, documents are apostilled by the relevant High Court, and DIRCO’s legalisation services are free (DIRCO). Israel has been a party since 1978, so an apostilled South African power of attorney is accepted.
Power of attorney and identity. Your Israeli lawyer prepares the power of attorney; you sign before a South African notary, add the apostille, and send passport copies, proof of address and the paper trail of the funds to the Israeli bank.

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

Purchase tax (mas rechisha) brackets in force, by buyer type
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 South African rand

Worked example: a ₪2,500,000 apartment bought from South Africa
Item	ILS (South African rand at the Bank of Israel rate)
Purchase price	₪2,500,000 (R13,290,000)
Purchase tax as a foreign resident (8% band)	₪200,000 (R1,060,000)
Purchase tax if the buyer were a new immigrant (oleh) inside the benefit window	₪2,606 (R13,900)
Purchase tax if the buyer were an Israeli resident buying an only home	₪20,538 (R109,000)
Largest bank loan at the 50% ceiling for an investment or non-resident purchase (Bank of Israel Directive 329)	₪1,250,000 (R6,650,000)
Equity the buyer brings (price minus the 50% loan)	₪1,250,000 (R6,650,000)
Semerenko Group buyer fee, 2% plus 18% VAT	₪59,000 (R314,000)
Cash needed before lawyer, registration and bank fees	₪1,509,000 (R8,020,000)

Bank of Israel representative rate of 2026-10-16: 1 ZAR = ₪0.1881. ₪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.

How buying from South Africa 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.

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Frequently asked questions

Can a South African buy an apartment in Israel?

Yes. Israel has no residency requirement for buying a home. The South African side is exchange control: the single discretionary allowance and the R10 million foreign investment allowance per calendar year, the latter with a SARS tax compliance PIN through the Approval for International Transfer process.

How do I move the purchase money from South Africa to Israel?

Through your bank under the allowances: the single discretionary allowance needs no tax clearance; amounts under the R10 million foreign investment allowance need a SARS Approval for International Transfer (TCR01) PIN. Payments then go to the Israeli lawyer’s trust account in the stages set by the contract.

How much Israeli purchase tax does a South African 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 R1,060,000 at the Bank of Israel rate of 2026-10-16.

Is Israeli rent taxed in South Africa?

Yes. South African residents are taxed on worldwide income regardless of source; Israeli tax paid on the rent is relieved through the section 6quat rebate, within the terms of the South Africa-Israel double taxation agreement.

Sources

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.