Buying Property Abroad as an Israeli: The Complete 2026 Guide - From Choosing a Country to Reporting in Israel

Anyone searching for "buying property abroad" mostly finds advertisements for projects and yields. From a legal standpoint, the important question is not which property to buy, but in what order the decisions are made, and what each decision closes off or opens up later. This guide is the map: it walks through every stage of the transaction from the perspective of an Israeli buyer, compares the eight countries in which we accompany transactions, and points to the detailed guide for each country. The information is current as of November 2026.

1What are the steps in buying property abroad?

There are eight stages, and their order is not arbitrary: every early decision limits what can be done after it. A buyer who signs a contract before deciding on the holding structure, for example, may discover that the property is registered in the wrong name from an Israeli tax perspective.

1. Choosing a country according to the goal, the passports in the family and the restrictions on foreigners.
2. Holding structure: in your name, in the name of family members or through a company.
3. Financing: equity, a local mortgage or a loan in Israel, and documenting the source of funds.
4. Checks: ownership, encumbrances, permits, debts and restrictions on the property.
5. Contract and payment mechanism: payments tied to milestones that can be verified.
6. Signing and registration in the land register of the country of the property.
7. Reporting and tax in Israel on the transfers, the rent and the sale.
8. Exit: sale, inheritance and bringing the money back to Israel.

2How do you choose a country for buying property abroad?

Start with the goal and the legal restrictions, not with the price. Regular income, capital preservation, a holiday home, residency status and development are different goals, and each narrows the options differently. Next, check what you are allowed to buy: an Israeli may buy an apartment in all eight countries in this guide, but in Romania and Bulgaria land is usually acquired through a local company, in Cyprus a buyer who is not an EU citizen needs a Council of Ministers permit, and in Greece a prior permit is required in border areas.

A European passport held by a family member can change the picture, so it is checked before choosing a property. A full comparison between the countries, by who may buy, protections, tax and financing, can be found in our guide on which country to buy property in abroad. We do not recommend a particular market and do not estimate yields.

3Should I buy in my own name or through a company?

Decide before the first payment, because transferring a property from an individual to a company after the purchase is usually a new transaction, with its own taxes and fees. Direct ownership is simpler and cheaper to maintain. A company may be necessary, for example to buy land in Romania or Bulgaria without a European passport, or customary, like an LLC in the USA, but it adds a layer of tax and costs in two countries.

On the Israeli side there are two well-known traps: a foreign company whose control and management are exercised from Israel may be treated as an Israeli resident for tax purposes, and a company holding a rental property in a low-tax country may fall under the controlled foreign company rules. The decision is made with a tax adviser, according to the number of properties, the goal and the holding horizon.

4Can you get a mortgage for property abroad?

Sometimes, but it depends on the country and the bank. In some countries local banks finance foreign buyers according to internal policy, in others financing is limited, and in Ukraine it is not practical under martial law. The common alternatives are equity or a loan in Israel, for example against a property in Israel.

In every route, the bank in Israel and the bank in the country of the property will want to know where the money comes from. An organised file with proof of income, sale, loan or gift, translated where required, prevents delays on the day the payment needs to arrive. If there is a mortgage, ask for approval in principle before signing a preliminary contract, not after.

5What should you check before buying property abroad?

Check the property in the official register and not according to the documents the seller presents: who the registered owner is, what encumbers the property, and whether what is built on the ground is what was approved. The basic list of checks is similar in all countries:

• Registered ownership: an up-to-date extract from the register, and a match between the registered owner and the person signing.
• Encumbrances and attachments: mortgages, attachments, claims and third-party rights.
• Permits: building permit, use or occupancy permit, and a match between the registration and the situation on the ground.
• Debts: property taxes, management fees and debts to the building association or management company.
• Restrictions on foreigners: special permit, border area, agricultural land or a limit on the number of units.
• When buying from a developer: a valid building permit, the developer's ownership of the land, encumbrances in favour of the financing bank and security for the buyer's funds.

6What should the contract include, and how do you protect your money?

Every payment should be tied to an event that can be verified, such as registration, a permit or the deposit of the contract, and not only to a date or to a statement by the seller. In a preliminary contract, check what happens to the deposit if the buyer or the seller withdraws, which conditions precedent apply (financing, a permit for a foreigner, the results of the checks), and what the deadline for the final signing is.

When buying from a developer, the difference between the handover date, when you receive the keys, and the registration date, when the property is registered in your name, is the difference between an expectation and a right. It is advisable to tie the balance of the price to the second date. A buyer signing from Israel usually does so through a notarial power of attorney with an apostille and translation, drafted in advance with the local notary and authorising only the defined acts. In Romania, a power of attorney for a real-estate transaction signed in Israel is signed before the Romanian consul.

7When is the property really mine? Who is involved and where you register in each country

In most of the countries in this guide, ownership passes, or is protected against third parties, only when it is registered in the local land register. In the USA the deed is recorded at county level, but there is no government guarantee of title, so protection relies on a title search and title insurance. The table summarises the parties involved, the register and the main taxes on the buyer's side, as of November 2026.

For each country there is a detailed guide on the site, with the steps, documents and typical risks:

• Buying property in Romania - the legal guide
• Buying property in Greece - the legal guide
• Buying property in Cyprus - the legal guide
• Buying property in Bulgaria - the legal guide
• Buying property in the USA - the legal guide
• The property purchase process in Italy before the notaio
• The property purchase process in Portugal: CPCV and escritura
• Buying an apartment in Ukraine and registering ownership

8What do you need to report to the Israel Tax Authority about property abroad?

An Israeli resident is taxed in Israel on worldwide income, so a property abroad concerns the Israel Tax Authority even when it pays tax in its own country. There are three main points of contact, as of November 2026:

• Rent: choose between 15% on rental income from a residential property abroad, deducting depreciation only and without a credit for the foreign tax, and marginal tax on net income with a credit for the tax paid in the country of the property.
• Sale: a capital gain under the Income Tax Ordinance, not land appreciation tax (mas shevach), generally up to 25% of the real gain with a credit for the local tax. A notice is filed on Form 1399 within 30 days and an advance payment is made.
• Annual return: the obligation can arise even without a gain, for example from a transfer of ILS 500,000 or more abroad within 12 months, or from foreign assets worth more than the threshold set in the regulations.

The full details, including surtax, the capital declaration and the rules on holding through a company, are in our guide to the Israeli side of property abroad: tax and reporting. It is advisable to build a transfer schedule with your accountant before the first payment, and to mark which tax year each transfer falls into.

9How do you exit the investment: sale, inheritance and bringing the money back?

Think about the exit on the day you buy, because the holding structure and the country determine how easy it will be to sell, bequeath and transfer the money. On a sale, tax applies in the country of the property and in Israel, and some countries have a special collection mechanism: in the USA, according to the IRS, the buyer generally withholds 15% of the sale price when the seller is a foreign person. In Ukraine, a non-resident pays 18% income tax and a 5% military levy on a sale, subject to exemptions, and transferring the proceeds abroad is restricted under martial law.

Inheritance of a property abroad follows a local procedure, before a notary or in court, and sometimes in parallel with a procedure in Israel. A will that works in both countries, and an organised file with the contract, the registration certificates and the tax receipts, save the heirs a great deal of time. When the property is held through a company, it is sometimes possible to sell shares instead of the property, and each route has a different tax result.

10What mistakes do Israelis buying property abroad repeatedly make?

• Paying a developer before there is a building permit or any registered right for the buyer.
• Relying on a lawyer who represents the seller or the developer.
• A "guaranteed yield" that is not backed by security.
• A holding structure chosen without checking the tax in Israel.
• A power of attorney that is too general, or one the local notary does not accept.
• Time pressure that prevents a check before the first payment.

11What to do before signing, and how we accompany you

Before signing, it is advisable to settle four things: the holding structure, the results of the register checks, a payment mechanism tied to milestones, and a schedule of transfers and reports in Israel. We accompany the legal side of the transaction from the perspective of the Israeli buyer, work alongside notaries and locally licensed lawyers in the country of the property, and coordinate with your accountant or tax adviser in Israel.

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