If you’re planning to buy property in Israel, understanding the difference between private and leased land is absolutely crucial. This affects what you actually “own,” how long you can keep it, and what legal steps are involved.
What Is Private Land?
Private land in Israel—also known as “Tabu land”—is land that is fully owned by the buyer, just like in the U.S. or Europe. You can sell it, lease it, pass it to your heirs, and make changes (within the law) without needing government approval. These types of properties are mostly found in central urban areas, such as:
- Tel Aviv
- Herzliya
- Haifa
- Parts of Jerusalem
Owning private land typically comes with fewer bureaucratic steps and may be more attractive for long-term investment or building.
What Is Leased Land?
Roughly 93% of land in Israel is owned by the government and managed by the Israel Land Authority (ILA). When you “buy” a home on this land, you’re actually entering into a long-term lease agreement—usually 49 or 98 years. You still have full usage rights, but the land legally belongs to the state.
These leases are automatically renewable, and in most cases, you won’t feel the difference—except in paperwork and possibly some annual lease fees.
Key Differences at a Glance
| Feature | Private Land (Tabu) | Leased Land (ILA) |
|---|---|---|
| Ownership | Full | Leasehold (49–98 years) |
| Location availability | Limited (urban areas) | Widespread |
| Government approval | Usually not required | May be required for sale or changes |
| Ideal for | Long-term ownership | Budget buyers, new builds |
???? Final Tip
If you’re a foreign buyer, buying on leased land is allowed, but make sure your lawyer checks if special permission is needed. Always request a full Land Registry Extract (Tabu) before making any decision.
Blog Post 2: How to Get a Mortgage in Israel as a Foreigner or Oleh Chadash
Financing your home in Israel? Whether you’re a new immigrant (Oleh) or an overseas buyer, getting a mortgage is possible—but there are some important differences you should know.
Can Foreigners Get Mortgages in Israel?
Yes. Several Israeli banks offer mortgage options to non-citizens and foreigners, though you’ll likely need:
- A larger down payment (often 40–50%)
- Proof of income (translated if foreign)
- A valid passport and tax ID
- Credit history or bank statements
Some banks also require you to open a local bank account to handle repayments.
Mortgages for New Immigrants (Olim)
If you’ve recently made Aliyah, you may qualify for:
- Discounted interest rates
- Government-backed loans
- Reduced purchase taxes
These benefits apply for a limited time (usually within 7 years of Aliyah), so check with your banker or Misrad HaKlita.
What Documents Are Needed?
For all buyers:
- Passport or Israeli ID (Teudat Zehut)
- Proof of income/employment
- Bank statements (6–12 months)
- Property details and signed contract
For foreigners:
- Translated proof of income (by notary)
- Proof of funds transfer
- International tax forms (sometimes)
Recommended Banks for Foreigners
- Bank Leumi
- Mizrahi Tefahot
- Bank Hapoalim
- Discount Bank
All major banks offer English-speaking mortgage advisors.
Tip from the Experts
Always shop around—even a small interest rate difference can save you tens of thousands of shekels over time. And don’t forget to factor in:
- Mortgage insurance
- Life insurance (mandatory with most banks)
