Question 1

What are the typical additional costs when buying a property in Israel?

Accepted Answer

The main costs beyond the property price: purchase tax (by bracket), legal fees (approx. 0.5%–1% + VAT), broker commission (approx. 2% + VAT), bank appraisal (approx. ₪2,000–3,500), and land registry fee (approx. ₪1,500). Total: 3%–8% of the property price.

Question 2

How much are legal fees when buying a property?

Accepted Answer

The standard legal fee is 0.5%–1% of the property price + VAT (17%). On a ₪2,000,000 property, that is approximately ₪11,700–₪23,400. It is important to agree on the fee in advance in writing.

Question 3

Is broker commission mandatory?

Accepted Answer

Broker commission is not a legal obligation — it arises from a contract with the broker. The standard rate is 2% + VAT from the buyer's side. If you did not sign a brokerage agreement, there is no obligation to pay.

Question 4

What is an appraisal and why is it needed?

Accepted Answer

An appraisal is a property valuation by a licensed property appraiser. The bank requires an appraisal before granting a mortgage, to verify that the property price matches its true value. Cost: approximately ₪2,000–₪3,500.

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