Most Israeli sales follow one playbook. Special situations break it. If you sell from abroad, inherited the home, share it with an ex or sibling, have a tenant, signed an urban-renewal deal, hold an off-plan apartment, or own through a company, the standard timeline and tax math change. Quick anchors: a notarized, apostilled power of attorney lets a seller abroad close without flying in (Notary Law section 20). An inheritor steps into the deceased’s purchase price and date, not the date-of-death value. Any co-owner can force a sale of jointly owned property at any time under the Land Law 1969. A protected (key-money) tenant stays with the property after sale and is very hard to evict. A foreign resident usually cannot claim the Israeli single-apartment exemption but keeps the linear calculation (gain before 1 January 2014 can be exempt, gain after taxed at 25%). A pre-completion new-build resells by assignment of rights and needs both the developer’s and the bank’s consent. A company seller pays corporate tax (currently 23%), not the 25% individual mas shevach rate.
You came here because your sale is not the simple one in the guides, and you need to know which rules actually apply to you. This page is a finder: tell us which situation fits, get the short version here, then follow the link to the page that carries the full detail.
Find your situation in 30 seconds
Match yourself to the closest row. Many sellers fit two rows at once (for example, a foreign resident selling an inherited apartment). When that happens, read both linked pages, because the rules stack rather than cancel out.
| If this is you | The one thing that changes | Go here |
|---|---|---|
| You live outside Israel | You sign by notarized apostilled power of attorney and usually lose the resident exemption | Foreign resident selling |
| You inherited the property | Your cost basis is the deceased’s, and section 49b(5) can give a full exemption | Selling inherited property |
| You own it with someone (or an ex) | Any co-owner can force a sale; the marital home splits even if registered to one name | Co-owned or divorce sale |
| A tenant lives there now | The lease runs with the property; a protected tenant cannot simply be evicted | Selling a rented property |
| You signed a TAMA 38 or pinui-binui deal | You sell future-apartment rights and the buyer inherits the agreement | Selling an urban-renewal property |
| The building is not finished yet | You resell by assignment of rights with developer and bank consent | Selling a new development pre-completion |
| It is a shop, office, or company asset | VAT at 18% and corporate tax can apply where a private home sale would be tax-free | Selling commercial property |
This sub-hub sits under the main guide on selling property in Israel. If your sale is the ordinary kind, start with how to sell step by step and the seller timeline instead.
The seven special situations, in plain terms
Selling from abroad as a foreign resident
A foreign resident usually cannot use the Israeli single-apartment exemption. Since Amendment 76 (2014) a non-resident qualifies only by proving, with confirmation from their home country, that they own no other apartment there, which is hard to get. The fallback that works is the linear calculation: the gain before 1 January 2014 can be exempt, the post-2014 portion is taxed at 25%. You do not need to fly in to close, because a power of attorney signed abroad and notarized, then apostilled or consul-legalized (Notary Law section 20), lets your lawyer sign. Full detail on the foreign resident selling page and the power of attorney page.
Selling property you inherited
An heir steps into the deceased’s tax position: the cost basis and acquisition date are what the deceased originally paid and when, not the value at the date of death. That usually raises the taxable gain but lengthens the pre-2014 linear-exempt window. Section 49b(5) can give a full exemption when three conditions all hold: the heir is the spouse, child, or child’s spouse; the deceased owned only one apartment; and the deceased would have qualified for the single-apartment exemption. Israel has no estate tax. See the inherited property page.
Co-owned property and divorce sales
Any co-owner can demand dissolution of joint ownership at any time without the others agreeing (piruk shituf, Land Law 1969). For an apartment that cannot be physically divided, the court orders a sale and splits the net proceeds. In divorce, the matrimonial home counts as a joint asset for equal division even if registered to one spouse only (Spouses Property Relations Law 1973), and a settlement needs court approval. The court can postpone a forced sale to protect housing for the couple’s children. Walkthrough on the co-owned and divorce page.
Selling with a tenant in place
An ordinary lease binds the buyer for its remaining term, so a sale does not hand over vacant possession by itself. To deliver an empty apartment, time the closing to the lease end or agree termination with the tenant. A protected tenant who once paid key money (dmei mafteach) holds a lifetime tenancy at nominal rent, stays with the property after sale, and is very hard to evict, which sharply cuts the price. Details on the selling a rented property page.
Selling an urban-renewal property
An owner who signed a TAMA 38 or pinui-binui resident agreement can still sell, but what changes hands is the future-apartment right under that agreement; the buyer inherits its terms, timeline, and risks, so the agreement’s status (signed, permitted, financed) drives the value. Betterment-levy treatment is gentler here: TAMA 38 reinforcement is generally exempt and pinui-binui is typically reduced or waived, against the standard 50% levy. See the urban-renewal page.
Selling a new-development apartment before completion
If the building is not finished and you have not taken possession, you sell by assignment of rights (havaat zchuyot), and you may need consent from both the developer and the construction-financing bank, which is not always given. Your title proof is a certificate of rights (ishur zchuyot), not a Tabu extract, because there is no Tofes 4 occupancy permit yet. The buyer-protection guarantee under the Sale Law 1973 must be re-issued to the new buyer. See the pre-completion page.
Commercial property and company-owned property
Selling a shop, office, or company-held asset is taxed differently from a private home. A registered dealer’s sale of commercial property generally bears VAT at 18%, where a private residential resale does not. If a company is the seller, the gain falls under corporate tax (currently 23%), and any building depreciation taken over the years (about 2% per year straight-line) lowers the basis and raises the taxable gain. Read the commercial property page and the broader VAT on selling page.
Two numbers I worked out for you
These are my own estimates built from the fact-bank figures, with the basis shown. Treat them as illustrations, not a tax ruling, and confirm with your lawyer or appraiser.
- Foreign seller, linear split. Take an apartment bought 1 January 2004 and sold 1 January 2026, held 22 years, with a NIS 2,000,000 real gain. Days before 1 January 2014 are about 10 of 22 years (about 45%) and are exempt; about 12 of 22 years (about 55%) is taxed at 25%. Estimated tax: 55% of NIS 2,000,000 is NIS 1,100,000, times 25% equals about NIS 275,000. Basis: fact-bank linear rule plus a straight day-count. A resident who qualified for the single-apartment exemption on a sale under NIS 5,008,000 could owe zero on the same gain, so residency status alone can be worth roughly NIS 275,000 here.
- Urban-renewal betterment saving. If a plan adds NIS 800,000 of value to your unit, the standard betterment levy at 50% would be NIS 400,000. Under a TAMA 38 exemption that drops toward zero; under a pinui-binui reduced rate near 25% it would be about NIS 200,000. Estimated saving from the urban-renewal track: NIS 200,000 to NIS 400,000 versus an ordinary sale. Basis: fact-bank 50% standard levy and the reduced or exempt urban-renewal treatment.
Before you list a non-standard sale: a short checklist
- Confirm your registration regime: Tabu ownership, Israel Land Authority leasehold, or a housing company (chevra meshakenet). Leasehold and housing-company transfers need extra consent and take longer. See Tabu vs Rami vs chevra meshakenet.
- Pull a current nesach tabu or certificate of rights and check it for any mortgage, lien, attachment (ikul), or warning note. Clear them early; lien removal can take 30 days or more. See liens and warning notes.
- If you cannot sign in person, set up a notarized, apostilled power of attorney before the contract stage, not after.
- Sort your tax position with a lawyer: single-apartment exemption, the linear pre-2014 split, or a betterment levy, before you price the home.
- Never sign a zichron devarim: a short signed memo can be a binding contract in Israel.
A few edge cases to flag while you are here. A seller with debt may face a court attachment (ikul) that must be lifted before title can move, on top of any bank mortgage. A seller buying another property should line up the mortgage discharge and the next purchase together so the timing does not strand you; see paying off a mortgage when selling. A seller with a legal dispute over the property (a boundary, an inheritance claim, or a partnership fight) should expect delay until it clears, one of the common reasons sales get delayed. Selling a private house or land on its own plot adds a surveyor boundary check and zoning checks, covered in selling a house or villa and selling land or a plot. And when the buyer is foreign, extra withholding and consent steps apply, set out in selling to foreign buyers.
Not sure which situation is yours
If two or three of these describe your sale at once, the right move is one conversation before you list, so the tax position and the paperwork are set up correctly from the start. Tell us about your situation and we will map your path.
