Closing Costs on Purchasing

Closing costs range between 5% and 7% of the cost of the apartment. This should not be overlooked when applying for a loan.

Contractors Lawyer Fees

when buying from a builder, one normally pays between 1 and 1.5% plus VAT to the contractor's lawer. This is only in the case of first hand apartments. The lawyer not only prepares the contract but also keeps a register of all the new owners and then formally registers the owner in TABU (The Official Goverment Titles Office). This transfer may take place up to 5 years from the date of purchase.

Purchase Tax

This tax is payable within 50 days of signing the contract. You can arrange with the lawyer to pay it all at once or in installments.
At the signing of the contract, give the attorney a post-dated check for 50 days from the date the contract was signed. You can also pay it yourself at the post office. ( The lawyer will provide you the relevant form). This tax must be paid in cash or with a bank check. The amount of the purchase tax is based on the shekel price of the property that appears in the contract.

The rates are as follows: (Between 16/1/2009 and 15/1/2010)

New Inmigrants
Until 1,318,400NIS	0.5%
Above 1,318,400NIS	5%
Single Residential Home
Until 1,026,660NIS	0%
From 1,026,660NIS Until 1,442,870NIS	3.5%
For The Remainder Above 1,442,870NIS	5%
Second Residential Home
Until 873,500NIS	3.5%
For The Remainder Above 873,500NIS	5%
Land Plot	5%
Shop	5%