Israeli real estate glossary

Registry and ownership

Tabu טאבו · land registry

The Israeli land registry, kept by the Ministry of Justice. A property “in the Tabu” is registered as freehold in its owner’s name; it is the simplest and safest regime. Registration in your name is the last step of the purchase, done by the lawyer. There is no title insurance in Israel: the Tabu extract is the title. Tabu, Minhal or housing company →

Nesach Tabu נסח טאבו · registry extract

The official Tabu extract for a parcel (gush/helka). It lists the owner(s), mortgages, caution notes, liens and easements. The lawyer pulls it before any offer and on the day of signing; it is available online in minutes for a few dozen shekels. What the lawyer checks →

Hearat azhara הערת אזהרה · caution note

An entry recorded at the Tabu as soon as the sale contract is signed, which flags the seller’s commitment to the buyer and prevents any other sale or mortgage without the buyer’s consent. It is the buyer’s main protection between signing and final registration. The bank records its own to secure the mortgage. The steps of a purchase →

Gush / helka גוש / חלקה · block / parcel

The two numbers that identify a plot in the cadastre and at the Tabu (plus a sub-parcel number, tat-helka, for an apartment). They appear on the Tabu extract, the contract and the power of attorney; they, not the street address, legally designate the property. The power of attorney →

Minhal (Rami) רשות מקרקעי ישראל · Israel Land Authority

The body that manages state land, about 90% of the territory. A property “in the Minhal” is held under a long lease (49 or 98 years, renewable) that is ownership in all but name. Some operations (extension, transfer) need its consent and sometimes a fee. The three property registries →

Hevrat meshakenet חברה משכנת · housing company

A company (developer or body) that keeps the register of rights for a building as long as registration at the Tabu has not been completed, sometimes for years after delivery. Buying there is possible and common, but the lawyer must check the state of the regularisation and obtain a certificate of rights. Tabu, Minhal or housing company →

Hakira חקירה · investigation, due diligence

All the checks carried out by the buyer’s lawyer before signing: Tabu, zoning, permits, municipal and building debts, the seller’s situation. It is the Israeli equivalent of due diligence; it takes one to two weeks and conditions the contract. The lawyer’s role and fees →

Contract, procedure and status

Zikaron dvarim זיכרון דברים · memorandum of understanding

A short document signed by seller and buyer to “hold” a property before the contract. As soon as it names the parties, the property and the price, the courts treat it as a binding sale contract. Never sign one without a lawyer; in most cases, do not sign one at all. Pitfalls and checklist →

Heskem mechira הסכם מכר · sale contract

The final contract, drafted in Hebrew by both parties’ lawyers. It sets the price, the payment schedule, the handover date, late-payment penalties and guarantees. A deposit of 10 to 20% is paid at signing and the caution note is recorded at the Tabu the same day. The steps of a purchase →

Yipui koach ייפוי כוח · power of attorney

The deed by which you give your lawyer the power to sign and act in your place. For a remote purchase it is drafted in Hebrew, signed before a notary public in your country and apostilled, or signed at an Israeli consulate. Banks and developers require an irrevocable version for the mortgage and off-plan purchases. Power of attorney and remote purchase →

Apostille אפוסטיל · international legalisation

The certification under the Hague Convention that makes a notarised deed from one country valid in another. Israel, the United States, the United Kingdom, Canada and Australia are all parties: a POA signed before a US notary and apostilled by the Secretary of State (or the FCDO in the UK) is accepted by the Tabu and Israeli banks. Cost $150 to $400 with the notary, 3 to 10 days. Buying without coming to Israel →

Toshav hutz תושב חוץ · non-resident

A person who is not tax-resident in Israel, whatever their nationality. For purchase tax, the non-resident pays 8% from the first shekel; for the bank, they generally get 50% financing. An Israeli citizen living abroad is toshav hutz for the tax authority but treated more favourably by the banks. Purchase tax for foreigners →

Oleh hadash עולה חדש · new immigrant

A person who has made aliyah (immigrated to Israel). For a single home bought between one year before and seven years after aliyah, the purchase tax schedule is 0% up to ₪1,978,745 then 0.5% up to ₪6,055,070 (purchase until 15 January 2028). Banks finance them up to 75%. Buying as a new immigrant →

Tax

Mas rechisha מס רכישה · purchase tax

The tax paid by the buyer, calculated by bracket on the price. In 2026, thresholds frozen until 15 January 2028: 0% up to ₪1,978,745 for a resident buying their only home, then 3.5%, 5%, 8% and 10%; 8% from the first shekel for a non-resident or an additional home, 10% above ₪6,055,070. Filed within 30 days, paid within 60 days. Mas rechisha 2026, brackets and examples →

Mas shevach מס שבח · real estate capital gains tax

The tax paid by the seller on the gain realised, at 25% on the part of the gain accrued after 2014 for a home. A resident selling their only home is exempt under conditions; the non-resident is exempt only if they prove they own no home in their country of residence. Selling property in Israel →

Dira yechida דירה יחידה · only home

The tax status of a resident buyer who owns no other home in Israel (or sells the old one within 18 months). It opens the reduced mas rechisha schedule, which starts at 0%. A non-resident who becomes a resident within two years of the purchase can claim this status retroactively. Purchase tax by status →

Dira nosefet דירה נוספת · additional home

Any home bought by someone who already owns one in Israel (above a one-third share). Purchase tax schedule of 8% up to ₪6,055,070 then 10%, identical to the non-resident schedule. Banks cap financing at 50%. Purchase tax calculator →

Arnona ארנונה · municipal tax

The annual local tax paid by the occupant (owner or tenant) to the municipality, based on floor area and zone; the Israeli equivalent of property tax or council tax. From ₪40 to ₪120 per m² per year depending on the city. The seller’s arnona arrears must be cleared before transfer: the lawyer requests a certificate from the municipality. Every fee of a purchase →

Mortgage (mashkanta)

Mashkanta משכנתא · mortgage

The Israeli home loan, granted by a bank and secured on the property. Term up to 30 years, made up of several tracks (prime, fixed, CPI-linked) of which at least one third at a fixed rate. Maximum financing of 75% for a resident’s first home, 50% for an investor or, in practice, a non-resident. The complete mortgage guide →

Maslul מסלול · track, loan component

Each component of a mashkanta, with its own rate, term and rules: prime, fixed unlinked, fixed CPI-linked, variable every five years. A loan is a mix of two to four maslulim; the Bank of Israel requires at least one third fixed and at most two thirds variable. There is no single-rate 30-year fixed as in the US. The tracks explained →

Prime פריים · bank base rate

The Israeli banks’ reference rate, equal to the Bank of Israel policy rate plus 1.5 points: 4.75% in November 2026 (policy rate 3.25%). The prime track is variable and unlinked; it is negotiated as a negative margin (P − 0.3 to − 0.9%) and can be prepaid without penalty. Rates today →

Ribit ריבית · interest rate

The rate applied to a mortgage track. It always reads with two qualifiers: fixed or variable (kvoua / mishtana), linked or unlinked (tsmuda / lo tsmuda). A low linked rate is not comparable to an unlinked one: expected inflation has to be added. Reading a bank offer →

Kvoua / mishtana קבועה / משתנה · fixed / variable

Describes a mortgage rate. A fixed rate (kvoua) does not move for the whole term of the track; a variable rate (mishtana) is reset on a schedule (every five years, every year) or follows prime continuously. At least one third of the loan must be at a fixed rate. Fixed or variable →

Tsmuda / lo tsmuda צמודה / לא צמודה · linked / unlinked

Describes a track whose outstanding principal is, or is not, revalued every month according to the consumer price index (madad). A linked track shows a lower rate (2.6 to 3.3% fixed) but the principal grows with inflation; an unlinked track (4.8 to 5.5% fixed) is dearer but predictable. Linked and unlinked rates →

Madad מדד המחירים לצרכן · consumer price index

The inflation index published monthly by the Central Bureau of Statistics (1.6% year on year in November 2026). “Linked” mortgage tracks are tied to it: the outstanding principal rises with it. Over 25 years, 2% inflation a year increases the principal by about 60%. Understanding indexation →

Madad tshumot habniya מדד תשומות הבנייה · construction cost index

The monthly index of construction costs (materials, labour). In an off-plan purchase, the balance owed to the developer is indexed to it between signing and each payment: at 3% a year over two years, a ₪2M balance costs about ₪120,000 more. It is the biggest hidden item in a new build. Buying off-plan →

LTV שיעור מימון · loan-to-value

The share of the price (or of the appraisal if lower) that the bank agrees to lend. Bank of Israel caps: 75% for a resident’s first home, 70% for a replacement home, 50% for an investor. Non-resident: 50% in practice, 70-75% if an Israeli citizen or aliyah within two years. How much deposit do I need? →

Ishur ekroni אישור עקרוני · pre-approval

The document in which a bank states, on the basis of your income and down payment, the amount it is prepared to lend and on what terms. Free, obtained in 2 to 10 days, usually valid 24 days and renewable. Get it before negotiating a property. Getting a pre-approval →

Yoets mashkanta יועץ משכנתאות · mortgage broker

An independent advisor who builds the file, approaches several banks and negotiates the margins. Fee of ₪6,000 to ₪15,000 or 0.5 to 1% of the loan, often recouped on a non-resident loan where nothing is published. Essential for an atypical file (foreign income, self-employed, age). The mortgage broker →

Shamai שמאי מקרקעין · licensed appraiser

The appraiser appointed by the bank, at the borrower’s expense (₪600 to ₪1,500), to value the property. The loan is calculated on the lower of the price and the appraisal. They also flag construction without a permit, which can get the loan refused. The bank appraisal →

Tik mashkanta תיק משכנתא · loan file

All the documents handed to the bank: ID, income, statements, source of the down payment, sale contract, Tabu extract, insurance. For a non-resident, everything must be in English or Hebrew. The file-opening fee is about 0.25% of the loan, negotiable. The documents you need →

Michzur מחזור משכנתא · refinancing

Renegotiating or refinancing an existing mortgage to benefit from lower rates or a new status (for instance after aliyah). Worth it if the saving exceeds the prepayment penalty on the fixed tracks and the fees. Worth studying as soon as rates have fallen by 0.5 of a point. Refinancing your mortgage →

Amlat piraon mukdam עמלת פירעון מוקדם · prepayment penalty

The amount owed to the bank if you repay a fixed-rate track when market rates have fallen since signing. It compensates the bank’s lost interest and can reach several percent of the principal. The prime track and the variable tracks carry none. Early repayment →

Bituach hayim / bituach mivneh ביטוח חיים / ביטוח מבנה · life insurance / building insurance

The two policies the bank requires for any mortgage: life cover on the outstanding principal, and building insurance in the bank’s favour. Free choice of insurer (not necessarily the bank’s). Past 60 or with a medical history, apply for life cover early. Mortgage insurance →

New builds, construction and planning

Kablan קבלן · developer, contractor

The developer or builder who sells homes off-plan. The contract with them is governed by the Sale Law; the developer’s legal fees charged to the buyer are capped at about ₪5,500 + VAT. Checking their registration in the contractors’ register and their past deliveries is part of the lawyer’s checks. Buying off-plan from a developer →

Heskem kablan הסכם קבלן · developer contract

The off-plan purchase contract, drafted by the developer’s lawyer and negotiated by yours. Key points: guarantee on every instalment, schedule (20/80 common in 2025-2026), indexation of the balance to the construction cost index, delivery date and late penalties due from 60 days past the contractual date, technical specifications. The developer contract, clause by clause →

Hok hamecher (Sale Law) חוק המכר (דירות) · Sale (Apartments) Law

The law that protects the off-plan buyer: the developer must secure every payment above 7% of the price with a bank guarantee, insurance or a mortgage. It also sets the completion warranty (warranty year, then periods by item) and the regime for late delivery. The risks of buying off-plan →

Arevut bankait ערבות בנקאית · bank guarantee

The guarantee issued by the project’s bank for every payment made to the developer, as required by the Sale Law. If the developer goes bankrupt or fails to deliver, the bank refunds the guaranteed sums. Never make an off-plan payment without receiving the matching guarantee. New-build guarantees →

Tofes 4 טופס 4 · certificate of occupancy

The document issued by the municipality that authorises a new building to be connected to water and electricity and to be occupied. Without a tofes 4, no lawful handover of keys. Its date determines delivery and the start of late penalties. Delivery and tofes 4 →

Mamad ממ"ד · safe room

The reinforced room mandatory in every home built since 1992, which serves as a shelter during alerts. Its absence in a resale weighs on the price and on rentability; in a new build it counts in the floor area and often serves as a bedroom. New-build or second-hand: the comparison →

Shetach bruto / neto שטח ברוטו / נטו · gross / net area

The area advertised in Israel is gross: walls, balcony and a share of the common areas included. Usable floor area in the US or UK sense is 15 to 20% lower. Compare prices per m² on the same gross basis and ask for the dimensioned plan. Gross vs net square meters →

Heter bniya היתר בנייה · building permit

The municipal authorisation to build or alter a building. The lawyer checks that the property bought (and its extensions, enclosed balconies, attic) matches the permit: unpermitted construction can bring fines, a demolition order and a mortgage refusal. The lawyer’s checks →

Taba תב"ע · zoning plan

The planning scheme that sets, for each parcel, what can be built: height, density, use. It reveals neighbouring projects (a tower in front of your view), unused building rights (hidden value) and urban-renewal projects. Available online, read by the lawyer or a shamai. Taba and permits →

Pinui-binui פינוי-בינוי · evacuate-and-rebuild

An urban-renewal programme: old buildings are demolished and replaced by denser towers; the occupants receive a new home. For an outside buyer, a price per m² 10 to 20% below a conventional new build, against delivery in 3-6 years and uncertainty on the timeline. Pinui-binui and TAMA 38 →

TAMA 38 תמ"א 38 · national seismic reinforcement plan

The national plan that allows pre-1980 buildings to be reinforced against earthquakes in exchange for building rights (extra floors, extensions). Two formulas: reinforcement and adding floors (38/1) or demolition and rebuilding (38/2). The scheme is being phased out in favour of local plans. Buying in a TAMA 38 project →

Building management

Vaad bayit ועד בית · building committee

The owners’ committee that manages the building and collects the monthly fees (also called vaad bayit), the equivalent of HOA or service charges: from ₪150 in a small older building to ₪1,500 and more in a tower with a pool and a doorman. The seller’s arrears are checked before signing. Recurring charges and fees →

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