Mas Rechisha for Foreign Buyers in Israel: 2026 Complete Guide
Exactly how much Mas Rechisha you will pay as a foreign buyer in Israel in 2026 โ rates, brackets, worked examples at multiple price points, deadlines, penalties, and how to file. By Pinny Rozen, licensed Israeli real estate broker, License #3161674.
If you are buying property in Israel as a non-resident foreigner, Mas Rechisha is the single largest transaction cost you will face โ larger than your lawyer fees, larger than broker commission, larger than all other fees combined. On a 1,000,000 USD purchase, your Mas Rechisha bill will be approximately 80,000 USD.
This guide gives you the exact 2026 rates, worked calculations at multiple price points, a comparison against Israeli resident and Oleh rates, and everything you need to know about filing deadlines and penalties.
Mas Rechisha (ืืก ืจืืืฉื) literally means โpurchase taxโ in Hebrew. It is a one-time tax paid by the property buyer to the Israeli government at the time of purchase. It is the Israeli equivalent of:
Stamp Duty Land Tax (SDLT) in the United Kingdom
Transfer Tax in many US states
Land Transfer Tax in Canada
Droits de mutation in France
Unlike these equivalents, Mas Rechisha in Israel is paid exclusively by the buyer โ the seller pays a separate tax called
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(capital gains tax) on their profit from the sale. You cannot negotiate Mas Rechisha with the seller. It is a fixed government obligation that is entirely your responsibility as the buyer.
The amount you owe depends entirely on two factors: the purchase price of the property, and your buyer category. There are three buyer categories in Israel, each with a different rate structure:
Foreign buyer / non-resident โ the highest rate
Israeli resident โ lower rates for a first and only home
As a foreign buyer (non-resident of Israel), you pay Mas Rechisha at the following rates in 2026:
Purchase Price Portion
Rate
Up to 6,055,070 ILS
8%
Above 6,055,070 ILS
10%
These rates apply to the entire purchase price from the first shekel โ there is no zero-rate band or exemption for foreign buyers. The 8% rate applies to the portion up to the threshold, and 10% applies only to the portion above it.
Important: These thresholds are updated by the Israel Tax Authority each year, typically in January. The figures shown are the 2026 brackets. Always confirm current brackets with your lawyer before completing a transaction.
Here is exactly how much Mas Rechisha you will pay at five common purchase price points as a foreign buyer in 2026. All figures in Israeli Shekels (ILS) and approximate USD at 3.65 ILS per dollar.
Example 1 โ Property price: 2,000,000 ILS (~$548,000)
Portion
Rate
Tax
2,000,000 ILS (full amount under threshold)
8%
160,000 ILS
Total Mas Rechisha
160,000 ILS (~$43,800)
Example 2 โ Property price: 3,000,000 ILS (~$822,000)
Portion
Rate
Tax
3,000,000 ILS (full amount under threshold)
8%
240,000 ILS
Total Mas Rechisha
240,000 ILS (~$65,800)
Example 3 โ Property price: 5,000,000 ILS (~$1,370,000)
Portion
Rate
Tax
5,000,000 ILS (full amount under threshold)
8%
400,000 ILS
Total Mas Rechisha
400,000 ILS (~$109,600)
Example 4 โ Property price: 7,000,000 ILS (~$1,918,000)
Portion
Rate
Tax
First 6,055,070 ILS
8%
484,406 ILS
Remaining 944,930 ILS
10%
94,493 ILS
Total Mas Rechisha
578,899 ILS (~$158,600)
Example 5 โ Property price: 10,000,000 ILS (~$2,740,000)
Portion
Rate
Tax
First 6,055,070 ILS
8%
484,406 ILS
Remaining 3,944,930 ILS
10%
394,493 ILS
Total Mas Rechisha
878,899 ILS (~$240,800)
For any other price point, use the Mas Rechisha Calculator to get your exact number instantly.
Comparison: Foreign Buyer vs Israeli Resident vs New Oleh
The same property costs very different amounts in Mas Rechisha depending on your buyer category. Here is a comparison using a 3,000,000 ILS property:
Buyer Category
Rate Structure
Tax on 3,000,000 ILS
Foreign buyer / non-resident
8% up to 6,055,070 ILS; 10% above
240,000 ILS
Israeli resident โ additional property
8% up to 6,055,070 ILS; 10% above
240,000 ILS
Israeli resident โ first and only home
0% / 3.5% / 5% / 10% progressive
~76,600 ILS
New Oleh (new immigrant)
0.5% up to 1,994,175 ILS; 1% above
~19,970 ILS
This table illustrates why making Aliyah before purchasing can have such a dramatic impact on transaction costs. A new Oleh buying a 3,000,000 ILS property pays approximately 19,970 ILS in Mas Rechisha. A foreign buyer pays 240,000 ILS for the same property โ a difference of over 220,000 ILS (approximately $60,000).
Israeli residents buying their first and only home benefit from a progressive rate:
Purchase Price Portion
Rate
Up to 1,978,745 ILS
0%
1,978,745 to 2,347,495 ILS
3.5%
2,347,495 to 6,055,070 ILS
5%
Above 6,055,070 ILS
10%
Foreign buyers do not qualify for this rate under any circumstances, regardless of whether it is their first property purchase in Israel.
New Oleh Rate Breakdown
Purchase Price Portion
Rate
Up to 1,994,175 ILS
0.5%
Above 1,994,175 ILS
1%
The Oleh rate applies only to the first property purchased after making Aliyah, within a defined window of time. Consult your lawyer for current eligibility conditions.
Form 7000 (Tofes 7000 โ ืืืคืก 7000) is the official declaration form that must be submitted to the Israel Tax Authority after every property purchase in Israel. It serves as the official notification to the government that a property transaction has occurred.
As a foreign buyer, you do not file Form 7000 yourself. Your Israeli real estate lawyer prepares and submits it on your behalf. Here is what the process looks like:
After signing the purchase agreement โ your lawyer immediately begins preparing Form 7000 with the transaction details: purchase price, property address, buyer and seller identification, and the applicable Mas Rechisha calculation.
Within 30 days of signing โ Form 7000 must be submitted to the Israel Tax Authority. Missing this deadline results in an additional fine on top of the regular Mas Rechisha amount.
Tax assessment โ The Tax Authority reviews the declaration and issues an assessment confirming the Mas Rechisha amount owed. In most straightforward transactions this is a formality โ the amount matches what your lawyer calculated.
Within 60 days of signing โ The actual Mas Rechisha payment must be made. Your lawyer coordinates the payment from your Israeli bank account or arranges the transfer.
Clearance certificate โ Once payment is confirmed, the Tax Authority issues a clearance certificate. This certificate is required for the final step of registering the property in your name at the Tabu (Land Registry). Without it, registration cannot proceed.
Practical note: Confirm the exact Mas Rechisha deadline with your lawyer on the day you sign the purchase agreement. Write it down. Your lawyer tracks it, but you should know it too.
Deadlines and Penalties for Late Payment
The Israeli tax system imposes automatic penalties for late Mas Rechisha payments. These are not discretionary โ they apply automatically once a deadline is missed.
Deadline
Requirement
Penalty for Missing
Day 30 from signing
File Form 7000
Late filing fine added to tax bill
Day 60 from signing
Pay Mas Rechisha
Linkage to inflation index plus interest, calculated from day 1 of delay
The penalty for late payment is calculated as the outstanding Mas Rechisha amount adjusted for inflation (linked to the Israeli Consumer Price Index) plus a fixed interest rate. The longer the delay, the larger the total amount owed. In practice, this means a 60-day delay on a 240,000 ILS tax bill can add thousands of additional shekels to what you owe.
Real consequence of delay: The Tax Authority will not issue the clearance certificate needed for Tabu registration until the full Mas Rechisha โ including any penalties โ is paid. This means a late payment does not just cost money; it delays the formal registration of the property in your name.
What is Mas Rechisha in Israel? Mas Rechisha is the Israeli property purchase tax paid by the buyer โ equivalent to Stamp Duty in the UK or Transfer Tax in the US. The rate depends on whether you are a foreign buyer, Israeli resident, or new immigrant. Foreign buyers pay 8% up to 6,055,070 ILS and 10% above.
How much Mas Rechisha does a foreign buyer pay in 2026? 8% on the full purchase price up to 6,055,070 ILS, and 10% on any portion above that threshold. On a 3,000,000 ILS property: 240,000 ILS. Use the Mas Rechisha Calculator for your exact number.
When does Mas Rechisha need to be filed and paid? Form 7000 must be filed within 30 days of signing the purchase agreement. Payment must be made within 60 days of signing. Your lawyer handles both. Missing the 60-day payment deadline triggers automatic penalties.
What is Form 7000? Form 7000 is the official declaration submitted to the Israel Tax Authority reporting a property purchase. It must be filed within 30 days of signing. Your lawyer prepares and submits it on your behalf.
Do Israeli residents pay less Mas Rechisha? Yes, significantly less for a first and only home. An Israeli resident buying a 3,000,000 ILS property as their sole home pays approximately 76,600 ILS. A foreign buyer pays 240,000 ILS for the same property.
Do new Olim pay less Mas Rechisha? Yes, dramatically less. A new Oleh buying a 3,000,000 ILS property pays approximately 19,970 ILS. A foreign buyer pays 240,000 ILS โ a difference of over 220,000 ILS for the same property.
Can I avoid Mas Rechisha as a foreign buyer? No. It is a mandatory government tax. The only way to pay a lower rate is to become an Israeli resident or make Aliyah before purchasing. There are no legal exemptions for non-resident foreign buyers.
Who pays Mas Rechisha โ buyer or seller? The buyer pays Mas Rechisha. The seller pays Mas Shevach (capital gains tax) on their profit. These are completely separate taxes.
What happens if I pay Mas Rechisha late? The Tax Authority charges linkage (inflation adjustment) plus interest from the day of delay. The Tax Authority will also not issue the clearance certificate needed for Tabu registration until all amounts โ including penalties โ are paid in full.
Does Mas Rechisha apply to all property types? Yes. Apartments, garden apartments, penthouses, duplexes, cottages, private houses, and villas all attract the same Mas Rechisha rates for foreign buyers.
Is Mas Rechisha deductible or refundable? No. Mas Rechisha is not tax-deductible against income in Israel and is not refundable. It is a one-time transaction cost. However, it is typically added to your cost basis when calculating Mas Shevach (capital gains tax) at the time of a future sale.
Calculate Your Exact Mas Rechisha
Use our free calculator to get your exact 2026 Mas Rechisha amount at any purchase price โ instantly.
Questions about your purchase? I am Pinny Rozen, licensed Israeli real estate broker, License 3161674. First consultation is free.
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