Buying a Home in Israel as a New Immigrant (Oleh Chadash) — Complete 2026 Rights Guide

A new immigrant (Oleh Chadash) buying a single home to live in pays Israeli purchase tax of 0% up to NIS 1,978,745 and only 0.5% on the portion above that, up to NIS 6,055,070 — compared with 8% from the first shekel paid by a foreign resident. The benefit is granted once, within a window that opens one year before Aliyah and closes seven years after it. Add mortgage benefits, rent assistance in the first years, and the practical option of buying remotely before you even land — and timing your purchase right can be worth hundreds of thousands of shekels. Here is the full guide.

The big one — purchase tax under Regulation 12A

The most valuable Oleh right is the purchase tax (Mas Rechisha) benefit. For transactions signed on or after 15.8.2024, the new Regulation 12A applies: an Oleh buying a single home for their own residence pays special reduced brackets — lower even than the regular Israeli single-home brackets detailed in our 2026 purchase tax brackets guide.

Two conditions to keep in mind: the benefit is granted once in a lifetime, and the home must serve as the Oleh's residence. Choosing which purchase to use it on is a real planning decision.

The time window — one year before Aliyah to seven years after

The benefit applies to a purchase made in the period starting one year before your Aliyah date and ending seven years after it — an eight-year window in total. Time spent in IDF military service is not counted toward the seven years, so the window extends accordingly.

If you made Aliyah before 15.8.2024, you are in a special position: you may choose between the old Regulation 12 and the new Regulation 12A — and the new track is not always the better one. See Regulation 12 vs 12A — the full comparison.

Oleh vs foreign resident — the dramatic difference

A buyer who purchases Israeli property while still a foreign resident — without Oleh status and outside the benefit window — pays the additional-home brackets: 8% from the first shekel, even if it is their only property anywhere in the world. This is the trap many pre-Aliyah buyers fall into when they sign too early.

Mortgages for Olim

Olim receive extra points in the state mortgage eligibility certificate (Teudat Zaka'ut) of the Ministry of Housing, and Oleh eligibility for this assistance lasts 15 years from the Aliyah date. Beyond the subsidized track, Israeli banks will, under certain conditions, recognize income earned abroad when approving a mortgage — critical for Olim who keep working for a foreign employer or have not yet entered the Israeli job market.

And until you buy? In the first years after Aliyah you may receive rent assistance from the Ministry of Aliyah and Integration — so there is no need to rush; you can plan your purchase calmly within the benefit window.

What you do NOT get — no capital gains exemption on sale

A common misconception worth clearing up: the Oleh benefits are focused on the purchase. When an Oleh sells a home in Israel, there is no Oleh-specific betterment tax (Mas Shevach) benefit — the same rules that apply to any seller apply to you. If your plan involves selling one property to buy another, build the tax planning on the general rules, not on your Oleh status.

Buying remotely before Aliyah — how it actually works

Because the benefit also covers a purchase made up to one year before Aliyah, many Olim sign while still abroad. In practice, a remote purchase runs on four rails:

• Power of attorney — your Israeli lawyer acts on your behalf, so you do not fly in for every signature.
• Remote signing — documents are signed at an Israeli consulate or before a notary in your country of residence.
• Israeli bank account and currency transfers — opening an account and planning the foreign-currency transfers in advance prevents missed contract payment deadlines.
• Land Registry extract (Nesach Tabu) — before any signature, the property's registration, mortgages, and liens are checked. When you buy from abroad, this check matters twice as much.

The transaction step by step — with legal guidance in your language

1. Due diligence on the property and the seller — Tabu extract, rights, debts, and levies.
2. Confirming your eligibility — Oleh status, the time window, and choosing the right tax track.
3. Negotiating and signing a purchase contract that protects you, adapted for a buyer who is abroad.
4. Reporting to the Israel Tax Authority and paying purchase tax on the benefit track.
5. Registering the property in your name in the Land Registry (Tabu) — closing the deal.

Buying a home is the largest transaction of your life — doing it in a language that is not your own makes it twice as hard. Adv. David Abebe, an Amharic-speaking real estate lawyer, guides Olim and members of the Ethiopian-Israeli community in English, Hebrew, and Amharic — from the first document check to Tabu registration, without missing a single benefit.

This article provides general information only and does not constitute legal advice or a substitute for individual legal counsel. Laws, figures, and procedures may change.