Buying an apartment in Israel from abroad: What every foreign buyer must know before signing

A comprehensive guide to purchasing an apartment in Israel by foreign residents, led by attorney Amit Friedman Giovanni. The article details the legal, tax, and bureaucratic complexities involved in a cross-border transaction, emphasizing the need for early planning of fund transfers, power of attorney, and notarial certifications.

Attorney Amit Friedman Giovanni, who specializes in advising foreign clients on real estate transactions in Israel, details the unique challenges for apartment buyers from abroad. The article, published in collaboration with ZAP Legal, focuses on legal and bureaucratic complexities: higher purchase tax for foreign residents compared to Israeli residents, the possibility of tax relief for those intending to immigrate to Israel, and the need to prove genuine intention to immigrate. Another critical issue is transferring funds to Israel – opening a bank account, proving the source of funds, and the associated difficulties, as illustrated by a case study of a foreign company that struggled to transfer money. Also discussed are remote signing via notarial power of attorney and Apostille certification, and the importance of choosing an experienced lawyer in cross-border transactions who will serve as the buyer's trusted representative. The article concludes with a reference to the additional costs unique to a foreign buyer, such as document translation and notarial certifications.