The Olam
Regulatory framework / Tax

Mas Rechisha

Israeli purchase tax on real-estate acquisition under the Land Taxation Law (1963). Tiered. Foreign buyers face a higher rate. Olim access reduced rates on first-residence purchase.

Mas Rechisha (Hebrew: מס רכישה — "purchase tax") is the Israeli stamp-duty-equivalent tax applied to real-estate acquisition under the Land Taxation Law (1963). The tax operates on a tiered structure that differs materially between Israeli residents and foreign buyers, with separate reduced-rate treatment for new olim and returning residents.

The base tiered structure for Israeli residents purchasing a primary residence applies a progressively tiered structure — exempt up to a periodically indexed threshold, then rising rates on subsequent tiers to 8% or higher on the top portions of substantial-value transactions. Foreign buyers without primary-residence treatment typically face a meaningfully higher effective rate; the structural surtax operates as a policy mechanism to manage foreign-capital pressure on the Israeli residential market.

New olim and returning residents access reduced Mas Rechisha treatment on the acquisition of an Israeli residence during the first seven years following aliyah, applied once per oleh (the first qualifying purchase). For the 2026 aliyah tax reform window cohort, Mas Rechisha treatment on first-residence acquisition is a meaningful component of the broader incentive package alongside the income-tax and worldwide-disclosure framework. Specific tier thresholds and rates are periodically indexed and should be referenced from current Israel Tax Authority publications at time of any transaction.

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