Mas Rechisha: understanding the purchase tax

Mas Rechisha (מס רכישה) is the property purchase tax in Israel. It applies to all buyers — Israeli residents, foreigners, and new immigrants (Olim Hadashim). The amount depends on the property price and buyer profile.

Israeli resident — first property: 0% up to 1,919,155 NIS, then 3.5%, 5%, 8%, 10%. Foreigner: 8% from the first shekel. Ole Hadash: 0% up to 1,838,615 NIS, then 0.5% and 5%.

The calculation is progressive, like income tax. Example: a resident buying at 3M NIS pays ~48,684 NIS (1.6%). A foreigner pays 240,000 NIS (8%). Difference: 191,316 NIS.