Can a Foreigner Buy a Home in Israel?
Yes, with approval. Israel Land Authority Procedure 05.02M lets its director approve 1 home for a foreign individual on Israel Lands, about 93% of the country.
Yes, with approval and for 1 home: the Israel Land Authority published Professional Procedure 05.02M on 19 June 2023, under which the Authority’s director may approve a foreign individual buying 1 residential unit on Israel Lands if the buyer holds rights in no other residential unit. Every other case, including a company or a second home, goes to a subcommittee of the Israel Land Council. The State Comptroller stated in March 2017 that about 93% of Israel’s area is Israel Lands.
| Figure | What it counts | Who published it | Period |
|---|---|---|---|
| 1 residential unit | Homes the director alone may approve for a foreign individual who holds no other residential unit | Israel Land Authority | Procedure 05.02M, published 19 June 2023 |
| More than 5 years | Lease length, in total or by option to extend, that counts as a “right” needing approval | Israel Land Authority | Procedure 05.02M, published 19 June 2023 |
| 5 considerations | Matters the Israel Land Council chair weighs in every case beyond the director’s powers | Israel Land Authority | Procedure 05.02M, published 19 June 2023 |
| About 93% | Share of the State’s area that is Israel Lands, managed in trust by the Israel Land Authority | State Comptroller of Israel | Report published March 2017 |
| About 70% | Share of the State’s area owned by the State itself | State Comptroller of Israel | Report published March 2017 |
| 178,005; 130,854; 167,538 | Transactions reported to real estate taxation offices, all buyers, with no split by buyer residency | State Comptroller of Israel | 2022; 2023; 2024 |
Israel Land Authority Procedure 05.02M lets a foreigner buy one home
Rights in Israel Lands may not be granted or transferred to a foreigner, for consideration or not, unless the chair of the Israel Land Council or the director of the Israel Land Authority approves, the Israel Land Authority states in Procedure 05.02M. The procedure applies Amendment 3 (2011) to the Israel Lands Law, 5720-1960, and its original text is dated 11 September 2017. The rule also covers forced sales, mortgage enforcement and execution of judgments.
The director alone may approve a purchase that meets every condition below:
- The buyer is a foreign individual, not a company.
- The purchase is 1 residential unit.
- The land is zoned for housing under a plan.
- The buyer holds rights in no other residential unit, and declares so under oath.
The Israel Land Authority states in the same procedure that approval does not oblige any transaction to proceed.
About 93% of Israel’s area is Israel Lands, the Comptroller states
Procedure 05.02M governs Israel Lands only. The State Comptroller stated in a March 2017 special audit report on the Jewish National Fund that about 93% of the State’s area is Israel Lands, managed in trust by the Israel Land Authority. The report defines Israel Lands as the land owned by the State, the Development Authority and the Jewish National Fund together, and of that, the State owns about 70%.
The State Comptroller reported the Jewish National Fund’s share as about 2.5 million dunams. The report lists the Development Authority and the Jewish National Fund separately from the State. It does not describe the remaining area of the State.
Who does Procedure 05.02M count as a foreigner?
A foreigner is any individual who is neither an Israeli citizen, nor an Israeli resident, nor a person entitled to immigrate under the Law of Return, 5710-1950, the Israel Land Authority states in its 2023 text. A person entitled under the Law of Return is therefore outside the definition. The procedure names three kinds of foreigner:
- An individual who is not a citizen, not a resident and not entitled under the Law of Return. Residents include holders of a temporary visa and licence.
- A company controlled by such individuals.
- Anyone acting on behalf of either.
The procedure binds only the acquisition of “rights”, which it defines by the kind of interest:
| Interest in Israel Lands | A “right” under Procedure 05.02M? |
|---|---|
| Ownership | Yes |
| Lease for periods totalling more than 5 years | Yes |
| Lease with an option to extend beyond 5 years | Yes |
| Lease of 5 years or less, with no option beyond 5 years | No |
Source: Israel Land Authority, Professional Procedure 05.02M, published 19 June 2023.
Other cases go to a Council subcommittee weighing 5 considerations
Every case outside the director’s powers goes to a subcommittee of the Israel Land Council, after referral to the Minister of Defence and the Minister of Foreign Affairs, and the Council chair decides, the Israel Land Authority states in Procedure 05.02M. This is the Authority’s own published procedure, in its June 2023 text, and it records the referral to the two ministers without publishing their views in any case. The chair weighs five considerations:
- The public interest and security.
- The foreigner’s connection to Israel, including periods of residence and family ties to non-foreigners.
- The purpose of the acquisition.
- The extent of land the foreigner already holds.
- The properties of the land, including size, location and zoning.
| Case | Who decides |
|---|---|
| Foreign individual, 1 residential unit, no other unit held | Israel Land Authority director |
| Foreign investor approved for a grant under the Law for the Encouragement of Capital Investments | Israel Land Authority director |
| Foreign state, under an international agreement | Israel Land Authority director |
| A company, a second home, or any other case | Israel Land Council chair, after the subcommittee |
| Transfer to a foreign individual by inheritance | Outside the procedure |
Source: Israel Land Authority, Professional Procedure 05.02M, published 19 June 2023.
The Authority publishes no count of homes approved for foreigners
Procedure 05.02M carries no count of approvals or refusals, and the Israel Land Authority published no such figure in it. The procedure does not address purchase tax or mortgage financing. The State Comptroller reported in 2025 how many transactions reached real estate taxation offices, with no split by whether the buyer was a resident:
| Year | Transactions reported to real estate taxation offices |
|---|---|
| 2022 | 178,005 |
| 2023 | 130,854 |
| 2024 | 167,538 |
Source: State Comptroller of Israel, Real Estate Taxation and Israel’s Real Estate Information Infrastructure, 2025.
The State Comptroller stated in the same audit that the Real Estate Transactions and Prices File cannot be relied on as a real estate database because it is incomplete. Neither record gives a number of foreign buyers.
Which figures here may not be combined?
- The 1 unit, the 5-year lease line and the 5 considerations are rules in the Israel Land Authority’s own procedure, not counts of approvals.
- The State Comptroller’s land shares are each “about”, carry no reference date beyond March 2017, and sum to about 93%. The Jewish National Fund’s about 12% may not be folded into the State’s about 70%.
- The transaction counts cover all buyers and may not be read as a count of foreign buyers. They are three single-year figures and are reported together.
Questions readers ask
Can a foreigner buy more than one home in Israel?
Not through the director’s route. The Israel Land Authority states that the director alone may approve 1 residential unit for a foreign individual who holds no other; any further case goes to the Israel Land Council chair.
Can a foreign company buy property on Israel Lands?
Only with the Council chair’s approval. The Israel Land Authority states in Procedure 05.02M that a company cannot use the single-unit route, so its case goes to a Council subcommittee.
Does the Law of Return change whether I count as a foreigner?
Yes. The Israel Land Authority states that a person entitled to immigrate under the Law of Return, 5710-1950, is outside its definition of a foreigner.
Does a temporary visa holder count as a foreigner?
No. The Israel Land Authority states that Israeli residents, including holders of a temporary visa and licence, are outside the definition.
Does a foreigner need approval to rent a flat?
Not for a short lease. The Israel Land Authority states that a lease of 5 years or less, with no option to extend beyond 5 years, is not a “right” under Procedure 05.02M.
Does a foreigner need approval to inherit a home?
No. The Israel Land Authority states that Procedure 05.02M does not apply to a transfer to a foreign individual by inheritance.
Who decides a foreign buyer’s application?
The Israel Land Authority states that its director decides the single-home route, and the Israel Land Council chair decides every other case after a subcommittee and referral to the Ministers of Defence and Foreign Affairs.
What does the Council chair take into account?
Five considerations, the Israel Land Authority states: public interest and security, the foreigner’s connection to Israel, the purpose, land already held, and the land’s size, location and zoning.
Does approval guarantee the purchase goes ahead?
No. The Israel Land Authority states in Procedure 05.02M that approval does not oblige any transaction to proceed.
Does the rule cover a bank enforcing a mortgage?
Yes. The Israel Land Authority states that the approval requirement also covers forced sales, mortgage enforcement and execution of judgments.
How much of Israel is covered by Israel Lands?
About 93% of the State’s area, the State Comptroller stated in March 2017, owned by the State at about 70%, the Jewish National Fund at about 12% and the Development Authority at about 11%.
How many homes have foreigners bought in Israel?
No figure is given in either record. The State Comptroller reported 167,538 transactions to real estate taxation offices in 2024, with no split by buyer residency.
Does Procedure 05.02M set purchase tax for foreign buyers?
No. The procedure the Israel Land Authority published in June 2023 deals with rights in land and does not address purchase tax.
Sources
- Israel Land Authority, 2023. Professional Procedure 05.02M: Granting or Transferring Rights in Israel Lands to Foreigners. Legal Department, original 11 September 2017, published 19 June 2023. https://www.gov.il/BlobFolder/policy/procedure-0502m/he/Procedures_05.02M.pdf. Official or primary record.
- State Comptroller of Israel, 2017. Jewish National Fund: Activities for the Development of Israel Lands, supplementary report on the financial management of JNF activity on state-owned land. Special audit report, March 2017, catalogue 001B-2017. https://library.mevaker.gov.il/sites/DigitalLibrary/Documents/special/2017-Kakal-Mar2017/2017-Kakal-Mar17-FullReport.docx. Official or primary record.
- State Comptroller of Israel, 2025. Real Estate Taxation and Israel’s Real Estate Information Infrastructure. Office of the State Comptroller and Ombudsman, English abstract. library.mevaker.gov.il. Official or primary record.
