Mortgage for Property Abroad: Where an Israeli Can Get Financing from a Local Bank, on What Terms, and What the Alternatives Are

The question “Can I take a mortgage on an apartment abroad?” sounds simple, but it has two different answers. One: a mortgage from a bank in the country where the property is located, where the security is the property you are buying. The other: a loan in Israel, where the security is an apartment you own in Israel. Each route suits a different situation, and they are often combined.

This guide summarises, country by country, what we know about financing from a local bank for an Israeli who is not a resident, based on the detailed guides on this site and sources we have checked. We do not state interest rates, because they change quickly and depend on the borrower’s profile. The information is correct as of November 2026.

1How does a mortgage for property abroad from a local bank work?

A bank in the country of the property lends you money and registers a mortgage on the property purchased. From the bank’s point of view you are a higher-risk borrower: your income is in shekels and in Israel, it is hard for the bank to verify it, and hard for it to collect from you if you stop paying. That is why almost the same requirements recur in every country:

• A higher down payment than a local resident’s, and full documentation of the source of funds.
• Proof of income from Israel, payslips or tax returns, usually with a certified translation and an apostille.
• A local tax number and a bank account in the country, for example NIF in Romania or Portugal, AFM in Greece or codice fiscale in Italy.
• A valuation on behalf of the bank and a legal review of the property. A property with building irregularities or without a separate title deed may not receive financing.
• The bank releases the money only when its mortgage is registered in the land registry, so the transaction timetable must match the bank’s timetable.

2In which countries can an Israeli get a mortgage from a local bank?

The table summarises the general picture. It does not mean that a particular bank will approve a loan for you, only what is known about the market. The ratios are published caps or ranges, not an offer.

3Mortgage in Romania: what does a Romanian bank require?

Romania is the market where Israelis take the most local mortgages. For foreign buyers financing reaches up to about 70% of the property value, so the down payment is at least 30%, before VAT and costs. Among other things, the bank asks for proof of income from Israel, bank statements, a NIF and a Romanian bank account, and for an investment property also an agreement with a management company. In an off-plan purchase the mortgage is usually granted only when a finished property can be pledged, so the construction instalments are financed from own funds or from a loan in Israel. See the guide to a mortgage on a property in Romania and the guide to financing from abroad by country of residence.

4Mortgage in Bulgaria: what does regulation allow?

Since 1 October 2024 three central bank limits apply in Bulgaria to every housing loan: up to 85% of the property value, repayment of up to 50% of disposable income, and a term of up to 30 years. These are caps for every borrower, and a bank financing a non-resident will usually set a lower ratio. Most of the Israeli investors we meet in Bulgaria combine an instalment plan with the developer, a loan in Israel or financing at the level of a Bulgarian company. The details are in the mortgage guide for Bulgaria.

5Mortgage in Cyprus, Greece, Portugal and Italy: what is the situation?

In Cyprus the central bank limits the loan-to-value ratio to 80% for a primary residence and 70% for other properties, and according to a 2026 professional review, foreigners who are not EU residents are usually offered 60%-70%. It is important to check the status of the title deed: banks prefer to take security over a property with a separate title deed, and this is a known problem in new projects, as we described in the guide to title deeds in Cyprus.

In Greece banks offer financing to foreign investors too, on terms that may differ from those for Greek citizens, and the common security is a first-ranking mortgage on the property. Financing is usually conditional on the property being legally and planning-compliant. In Portugal some banks finance non-residents, and the decision rests with each bank’s credit committee. In Italy the number of banks that finance non-residents is small, and it is advisable to make the preliminary agreement (compromesso) conditional on obtaining financing. In these three countries we did not find an official source for the loan-to-value ratio for foreigners, so we do not state a figure.

6US mortgage for a foreigner: how does it work?

An Israeli investor without status in the US almost never obtains a conventional mortgage. He turns to private lenders under Foreign National or DSCR programmes, in which the loan is assessed according to the property’s rental income. According to lender publications in 2026, a foreigner usually receives financing of 60%-65%, and reserves of 6 to 12 months of payments are required. Most loans carry a prepayment penalty for three to five years, and a loan for an investment property does not benefit from some consumer protections. See the guide to a US mortgage for a foreigner.

7An all-purpose loan in Israel: when is it preferable?

Anyone who owns an apartment in Israel can pledge it, take an all-purpose loan and use the money for a purchase abroad. An Israeli bank will not take security over a property abroad, but it also does not need to examine it. According to the Supervisor of Banks’ clarifications to Directive 329, in the February 2026 version, such a loan is limited to 50% of the value of the pledged apartment.

The main drawback of the loan in Israel is the currency: the repayment is in shekels, while the property and its income are in euros or dollars. With a local mortgage the gap is reversed: the debt is in euros, and your income is in shekels. It is worth running the repayment against a 10% and a 20% exchange-rate fluctuation, as we explained in the guide on shekel income and a euro mortgage. You can also use the mortgage calculator to see the repayment under each scenario.

8What else can be done besides a mortgage?

• An instalment plan with the developer in an off-plan purchase. This is practical financing, but the money goes to the developer before the property exists. Therefore each payment should be tied to a construction stage that can be verified in an official document and, where possible, to security. See how to protect payments to a developer in Romania and the Act 14, 15 and 16 stages in Bulgaria.
• Company-level financing in the country of the property, mainly in projects and commercial properties. Banks will usually require equity and personal guarantees.
• Partners’ equity, without bank debt. Here the key is a detailed partnership agreement that covers exit and disputes.

9How does financing affect tax in Israel?

An Israeli resident who rents out a property abroad chooses between the 15% track under Section 122A of the Ordinance, in which only depreciation is deducted and there is no interest deduction, and the track under the marginal tax brackets, in which expenses, including interest, are deducted and a credit is given for the foreign tax. In a significantly leveraged transaction, the difference between the tracks can be large. That is why the loan structure and the tax track are chosen together with an accountant. The details are in the guide to the Israeli side of a property abroad.

10Seven steps before choosing a financing route

1. Decide what you are willing to pledge: an apartment in Israel, or only the property abroad.
2. Ask the bank in the country of the property for a written agreement in principle before the preliminary agreement: loan-to-value, currency and a list of documents.
3. Include in the preliminary agreement a condition allowing you to withdraw from it if the financing is not approved.
4. Prepare the documents from Israel early: certified translation, notary and apostille take time.
5. Plan the full equity: not only the unfinanced portion, but also taxes, fees, VAT and legal fees. See the acquisition cost calculator.
6. Check the currency of the debt against the currency of your income, and run exchange-rate scenarios.
7. Coordinate the tax track in Israel with an accountant before signing the loan.

Further reading: Mortgage in Greece for Israelis: Will a Greek Bank Lend to a Non-Resident, and What Are the Alternatives.

11How we support the financing stage

We build the financing structure with the client before the preliminary agreement: we check whether a local mortgage is realistic in his case, align the contract terms and the payment schedule with the bank’s timetable, and handle the legal review and the registration of the mortgage in the land registry. We are not mortgage advisers and do not recommend a particular bank or product. The comparison between offers is best done with a mortgage adviser and a tax adviser.

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