Buying an apartment in Netanya from the UK or the US: the steps
Signing binds you at once, a lawyer handles the purchase and the purchase tax depends on your status: the steps, in order, to buy in Netanya with peace of mind.
Dreaming of an apartment in Netanya, to live in after your aliyah, for the holidays or as an investment? Good news: foreigners can buy freely in Israel, whether they are residents or not. But if you are used to buying in the UK or the US, the process works very differently. Here are the steps, in order, to buy with peace of mind.
What is different from the UK and the US
- Signing the contract binds you immediately. In England, an accepted offer means nothing until contracts are exchanged, and either side can walk away before that. In the US, the purchase agreement usually includes contingencies (financing, inspection, appraisal) that let you withdraw and recover your earnest money. In Israel, there is none of that: the contract is signed at a lawyer's office and you are committed from that moment. If you back out, you lose the amount paid at signing. Everything must therefore be checked before you sign, financing included.
- Your lawyer does it all. There is no escrow company and no title insurance as in the US, and no separate surveyor as in the UK: an Israeli real-estate lawyer checks the title, drafts the contract and handles the formalities. Choose your own, independent from the seller.
- A purchase tax instead of stamp duty or closing costs, called mas rechisha (מס רכישה). Its amount varies enormously with your status (see below).
Our first piece of advice: forget home. The most common mistake foreign buyers make is comparing what they see here with what they know in London, New York or Los Angeles. These are different countries: the rules, finishing standards, types of buildings and materials have nothing in common. Those who keep comparing never buy. Judge each apartment by the standards of the Israeli market.
Step 1: plan your budget and financing
If you need a mortgage (mashkanta, משכנתא), ask an Israeli bank for an approval in principle (ishur ekroni, אישור עקרוני) before you start looking. You will know exactly how far you can go.
The Bank of Israel caps the share of the price a mortgage can cover:
- 75% for a sole residence;
- 70% for an apartment that replaces another one;
- 50% for an investment.
For non-resident buyers, banks lend around 50% in practice, sometimes less, and ask for proof of income from abroad. Also plan to open an Israeli bank account: it makes every payment easier.
You can also work with a mortgage broker (yoets mashkanta'ot, יועץ משכנתאות), who compares bank offers and negotiates for you. We can put you in touch with the right people for the whole financing side: broker, banker or other professionals.
Step 2: search and visit
Netanya is a city of very different neighborhoods: the lively center around Kikar Square, the seafront of Nitza Boulevard, the new towers of Ir Yamim… Prices vary widely from one to the next (see our market update).
During visits, pay particular attention to:
- the Shabbat elevator, if you need one;
- the mamad (ממ"ד), the reinforced safe room, more and more sought after;
- the parking space: ask whether it is registered in the tabo (טאבו, the land registry). If so, it belongs to the apartment. If not, parking is often shared among residents, first come, first served;
- the orientation and the sea view, which weigh heavily on the price.
Step 3: negotiate, without signing anything too fast
Asking prices are negotiable. Be careful, however, with the "memorandum of understanding" (zikhron dvarim, זכרון דברים) you are sometimes asked to sign to "hold" the apartment: unlike a non-binding offer letter, under Israeli law this document can already bind you. Do not sign anything without your lawyer's advice.
Step 4: your lawyer's checks
Before signing, your lawyer checks in particular:
- the land registry extract (nesach tabo, נסח טאבו): who owns the property, is there a mortgage or a lien?
- the property's compliance with its building permit, at Netanya city hall (a closed-in balcony or a room added without a permit can cause trouble);
- that the seller has no debts (municipal tax arnona, ארנונה, building charges);
- ongoing projects on the building, for example a Tama 38 (תמ"א 38) seismic reinforcement and extension project.
Step 5: sign the contract
The contract sets the price, the payment schedule (often in several installments) and the handover date. Right after signing, your lawyer registers a caution note (he'arat azhara, הערת אזהרה) in the land registry: it prevents the seller from selling or mortgaging the property to someone else.
Can't be in Israel that day? A power of attorney (yipui koach, ייפוי כוח), signed before a notary with an apostille or at an Israeli consulate, lets your lawyer sign for you.
Step 6: pay the purchase tax
The transaction must be declared to the tax authority within 30 days of signing, and the tax paid within 60 days. The brackets are frozen until January 2028:
| Your situation | Purchase tax |
|---|---|
| Israeli resident, sole apartment | 0% up to ₪1,978,745, then 3.5%, 5%, 8% and 10% by bracket |
| New immigrant (oleh hadash, עולה חדש), sole apartment (bought from one year before aliyah to seven years after) | 0% up to ₪1,978,745, then only 0.5% up to ₪6,055,070 |
| Non-resident, or second apartment | 8% from the first shekel, 10% above ₪6,055,070 |
Example for a ₪2,500,000 apartment:
- resident, sole apartment: about ₪20,500;
- new immigrant: about ₪2,600;
- non-resident: ₪200,000.
The gap is huge. If you are planning your aliyah, the timing of the purchase matters a lot. A non-resident buyer who becomes an Israeli resident within two years of the purchase can also, under conditions, recover part of the tax. Have your lawyer run the exact numbers before you sign.
Buying new, off-plan
If you buy from a developer, the law protects your payments: each one must be covered by a bank guarantee or another guarantee provided for by law. The price can be indexed to the construction cost index, but only partly: 40% of the price at most for contracts signed since July 2022, and never beyond the delivery date set in the contract.
Step 7: handover and registration
With the last payment, you get the keys. Your lawyer then completes the formalities (tax and city hall clearances) and registers your name in the land registry. This last step can take several months, which is normal: the caution note protects you in the meantime.
Other costs to plan for
- Lawyer's fees: usually between 0.5% and 1% of the price, plus VAT (18%).
- Agency fee: usually between 1.5% and 2% of the price, plus VAT, agreed in writing beforehand (Israeli law requires it).
- Bank appraisal (shamai, שמאי) and file fees if you take a mortgage.
- Taxes back home: US citizens remain taxed by the IRS on their worldwide income, including Israeli rental income, and must report their Israeli bank accounts. UK residents declare foreign rental income to HMRC. Israel has tax treaties with both countries: talk to an advisor.
In short
Buying in Netanya from abroad is simple if you follow the order: financing, search, your lawyer's checks, and only then the signature. The biggest cost difference comes from the purchase tax: check your status from the start.
Looking for an apartment in Netanya? Browse our listings or message us on WhatsApp: we guide you in English, from the first visit to the handover of the keys.
This article gives general guidance, up to date as of October 2026. It does not replace advice from a lawyer or tax advisor for your own situation.