What is the deal worth to you in shekels?

Property abroad is bought in euros or dollars, but your capital, income and tax are in shekels. Enter the deal details, the financing and the exchange rate, and get the required capital, the yield, the annual cash flow and the IRR, as well as what happens when the exchange rate or the price moves.

1Property

Country

Deal currency

Euro Dollar

Property priceEUR

Property type

New from a developer Resale

Purchase costs%

Filled in from the acquisition cost calculator (mid-range, excluding VAT included in the price). You can change it.

2Financing

Loan% of the price

Annual interest rate%

Loan termyears

3Income and expenses

Monthly rentEUR

Vacant months% of the year

Management fees% of the rent

Fixed annual costsEUR

Property tax, insurance, building maintenance fees and upkeep. Filled in from the holding costs in the calculator (excluding taxes that apply only to high-value property); it is worth adding insurance and maintenance.

4Tax on rental income

Tax basis

On gross income On net income (after expenses and interest)

The tax rate you chose%

How do you choose a tax rate and basis?

In Israel, an individual who rents out a residential apartment abroad can usually choose between two tracks. In the 15% track under Section 122A of the Income Tax Ordinance, tax is calculated on gross income, only depreciation may be deducted, and there is no credit for tax paid in the country where the property is located and no offsetting of losses. In the regular track, tax is at your marginal tax rate, on income after expenses, with a credit for foreign tax under the rules and the tax treaty.

In addition, there may be tax in the property's country. The model does not choose for you and does not deduct depreciation: enter the rate and basis you set with your accountant, and if you wish, run both tracks and check the difference.

5Exchange rate, holding and exit

Enter the current exchange rate₪ per 1 EUR

The value shown is only a starting point and is not a current exchange rate.

Exchange rate sensitivity±%

Holding yearsyears

Annual change in property price%

Selling costs at exit% of the price

Tax on the capital gain on sale%

Enter the rate that applies to you in the property's country and in Israel, after credits.

The equity you need to bring, including purchase costs

Gross yield: -
Net yield before financing and tax: -
Annual cash flow in the first year: -
Monthly loan payment: -
First-year return on equity: -
Internal rate of return (IRR) in shekels: -

Summary of the period in shekels

Sensitivity: IRR in shekels

Rows: change in the exit exchange rate and in operating cash flow. Columns: annual change in property price. The highlighted cell is the assumptions you entered.

Exchange rate sensitivity: amounts in shekels

The link saves only the numbers you entered, with no personal details.

The information is general and is not legal or tax advice, and is no substitute for reviewing a specific deal. The model is a general estimate for illustration only, based on the data you entered. It does not include depreciation, rent indexation, tax in the property's country that you did not enter or interest rate changes, and it is not a recommendation to enter into a deal.

Disclosure: Adv. Ilan Leibovitch is also a real-estate developer and a partner in Compass Group, the developer of Compass on the Lake in Romania. The office does not represent buyers or investors in transactions with Compass Group or its projects, and refers them to independent counsel.

More tools