Purchase tax, timing, renting versus buying: the questions to ask yourself so that your aliyah and your property plans work together.
For many French-speaking families, buying a home in Israel goes hand in hand with making aliyah. Aligning the two carefully helps avoid costly mistakes.
Tax benefits for olim
Israeli law provides for a reduced purchase tax scheme (mas rechisha) for new immigrants buying a home. According to publicly available information, this scheme:
- applies within a time window that begins before the date of aliyah and extends for several years afterwards;
- is subject to conditions (notably the use of the home and other properties owned) and to ceilings that are revised regularly;
- must be applied for: it is not granted automatically.
Buy before or after?
Buying before aliyah means you arrive in a home that is ready, can choose your children’s school according to the neighbourhood, and can prepare any renovation work from abroad.
Renting first lets you discover everyday life, compare neighbourhoods and take your time — while keeping an eye on the window during which the tax benefits apply.
Why consider the Sea of Galilee region?
- The quality of life: nature, light, mild winters, a calmer pace.
- Space: houses with gardens, notably in Poria Illit.
- A full-service town nearby in Tiberias.
See also Moving to Israel: how to choose your region
Points to watch
- Align the timing of the purchase, the move and schooling.
- Plan ahead for transferring funds and for exchange-rate risk.
- Check the rules specific to certain localities (admission procedures).
- Budget for any renovation work.
