Aharoni Law Firm has an intimate and thorough understanding of Israeli real estate law and the complexities of Israel’s Real Estate market. Our experts will assist you in understanding recent and relevant trends, identifying ideal neighborhoods and properties, avoiding pitfalls, and negotiating as effectively as possible. Our practice areas extend beyond legal representation and production of paperwork. We can help determine asset quality and can secure independent appraisals at your request.
Our Israeli Property Law Services Include the Following:
- Contracts – preparing contracts for purchasing or selling real estate assets in Israel, including conducting the negotiation and attending the signing procedures
- Israeli Property Rights – Searching the legal rights and title connected to the property, including ownership rights and attached obligations. We will gather all relevant documents, deeds, and extracts and we will conduct searches with all relevant authorities and bodies
- Conducting due diligence regarding acquisitions of commercial real estate and business.
- Registry – Registering and transferring all property rights under all relevant Israeli authorities.
- Litigation – Providing legal representation in an Israeli court for all disputes related to land, title, and real estate
- Mortgage – Providing assistance in obtaining and negotiating the terms of a mortgage including vacation houses.
- Representation in the purchase or sale of residential or commercial property
- Representation of tenants or landlords in commercial leases
- Providing legal representation regarding Israeli real estate taxation
How are Real Estate Contracts Negotiated in Israel?
In Israel, the terms of Real Estate Contracts are negotiated by the legal representatives of the parties involved and are not strictly determined by the State – unlike real estate transactions in the United States. Contracts are usually only signed after negotiations and the back-and-forth exchange of draft agreements in compliance with Israel's Property Laws. Each side’s lawyer in a typical Israeli real estate transaction is responsible for providing all the relevant documents and proof of title and ownership in order to assure the purchasers' future unfettered ownership rights when buying property in Israel. We represent international clients from the United States, Canada, the UK, Europe, and Israel. Please contact us from the US or Canada at 1.888.923.0022 or in Israel at (972) 3.9055478 or (972) 50.7322688 to schedule a discussion regarding your case.
Purchasing Property and Real Estate in Israel: What You Need to Know
If you are planning to purchase or sell a property or real estate in Israel you want to be sure you have all of your bases covered to ensure this crucial life event runs smoothly. You will no doubt have many questions you need answering, especially if you are making Aliya to Eretz Israel. For instance, what are the specific taxes associated with buying a property in Israel? Legal fees? commissions, and contract negotiations? What are some of the best neighborhoods and communities to establish yourself there?
Aharoni Law Firm has extensive knowledge and experience in dealing with all areas of Israeli real estate law and the Israeli real estate market.
Deciding on Your Location
When you move to a new place, the first thing you must decide is where you’d like to live. This is true no matter where you are migrating to, and of course, migrating to Israel is no different. As you move forward with this life-altering decision, here are some things you’ll need to consider:
- Best Location for Your Home
- School Districts if you Have Children
- Quality of Life
- Employment and Other Income Opportunities
- Local Weather
Housing Prices and Other Costs of Living
All of the above factors play a part in making the best decision that will suit your family’s needs while helping you achieve lasting success and happiness. When you are moving from North America to Israel, for example, you will want to consider deciding on a community with English speakers to help make your life a little easier while transferring. This will also help greatly if you have English-speaking children, so you have educational options that fit your needs.
During your migration process, it is imperative to comprehend the intricacies of the Israeli real estate market. This is true whether you are moving into a brand new home or a preowned one. Moving to a new place overseas can be stressful for migrants, and the last thing you want to deal with on top of that is to be caught off guard with surprise hidden costs.
Some of these costs include moving costs, mortgages, taxes, legal fees, and other financial considerations. These costs tend to differ depending on the specific city, so any good Israeli real estate lawyer will have a deep understanding of these costs and lay them all out to you comprehensively. There is also a good amount of homeownership terminology involved with the process, which you should also understand before making the move.
Taxes Specific to Israel
There are two main taxes specific to Israel to be aware of when buying a property there. They are capital gains tax and purchase tax. The purchase tax is a graduated tax that is based on the value of the property. Generally speaking, purchase taxes must be paid within 60 days of moving to the country. This tax varies and is based on the brackets related to the property value. Buyers whose property values don’t exceed 1.7 million shekels are exempt from purchase taxes. Any property value that is higher than that is taxed between 3.5-10% with anything higher than 17.3 million taxed at 10%. Taxes on buying a property in Israel can be one of the most confusing parts of the moving process, so you must get the right legal expert to help you with this. The tax rates change every January, so it’s important to seek the right counsel and stay up-to-date on graduated taxes. Be sure to pay attention to the fluctuation of inflation of the shekel, which happens in every country.
The other tax imposed on real estate in Israel is the capital gains tax, which is also referred to as Land Appreciation Tax, which applies when a homeowner is selling. Capital gains taxes are applied when the value of the home is higher than what you bought it for - and these taxes are typically about 25% of the most net gain. Depending on your circumstance, you might be eligible to be exempt or get leniency on these taxes, so it’s important to speak with an Israeli real estate lawyer to determine. If you will be renting out a portion of your home, you will also be charged an income tax. Municipalities also charge a municipality tax, which varies from location to location.
Expert in Israeli Real Estate
Aharoni Law represents international clients from the United States, Canada, the UK, Europe, and Israel. If you’d like to schedule a free consultation about your property purchase or any other real estate related issue, don’t hesitate to contact us. We can be reached in the U.S. or Canada at 888-923-0022 or in Israel at (972) 3.9055478 or (972) 50.7322688.