What Is Mas Rechisha?
When you buy real estate in Israel, you pay a one-time purchase tax called מס רכישה (Mas Rechisha) (literally "purchase tax"). This is separate from the property price, legal fees, and mortgage costs - it is a tax paid directly to the state within 60 days of signing the purchase contract.
The brackets were frozen by the 2025 Arrangements Law. For an Israeli resident buying a single apartment, the Tax Authority's published bands for 16.1.2025 to 15.1.2028 are:
- Up to 1,978,745 NIS: no tax
- 1,978,745 – 2,347,040 NIS: 3.5%
- 2,347,040 – 6,055,070 NIS: 5%
- 6,055,070 – 20,183,565 NIS: 8%
- Above 20,183,565 NIS: 10%
Buying an apartment that is not your only one is far more expensive: under a temporary order in force to 31.12.2026 the rate is 8% on value up to 6,055,070 NIS and 10% above it, from the first shekel.
How much do olim save on purchase tax?
The relief sits in Regulations 12 and 12A of the purchase tax regulations. For a single or replacement apartment, Regulation 12A gives an oleh these bands for 16.1.2025 to 15.1.2028:
- Up to 1,978,745 NIS: no tax - the same zero band as a regular single-apartment buyer
- 1,978,745 – 6,055,070 NIS: 0.5% - against the 3.5% and 5% a regular buyer pays across that same range
- 6,055,070 – 20,183,565 NIS: 8%, and above 20,183,565 NIS the Regulation 12A relief does not apply at all
There is a separate track for a business premises the oleh or a relative works in (Regulation 12): 0.5% on value up to 1,988,090 NIS and 5% above it.
In practical terms: on an apartment priced at 3,000,000 NIS, a regular Israeli resident buying a single apartment pays about 45,500 NIS, while an oleh pays about 5,100 NIS - a difference of roughly 40,000 NIS. At 4,000,000 NIS the regular buyer pays about 95,500 NIS and the oleh about 10,100 NIS, so the gap widens to roughly 85,000 NIS.
How long are olim eligible for the mas rechisha discount?
The regulation defines the window as starting in the year before you enter Israel and ending seven years after your entry. That gives you a generous window to find the right property, get financially settled, and buy when the time is right. You are not required to rush into homeownership to access this benefit.
Key rules:
- The discount applies to the first property you purchase in Israel
- You must be buying for residential use (not solely as an investment property, though this is rarely enforced strictly)
- The property does not need to be your primary residence - olim can claim the benefit on a property they intend to rent out, provided it is their first purchase
- The benefit applies once only, on one transaction within the 7-year window
Can you claim the discount retroactively for property bought before aliyah?
One lesser-known rule is that the olim discount can be applied retroactively for property purchased up to one year before your official aliyah date. If you bought an apartment in Israel before making aliyah formally, and you then made aliyah within 12 months of that purchase, you can file an amended mas rechisha declaration and claim the oleh rates retroactively.
This is particularly relevant for people who bought property in Israel while on a visa or pilot trip and subsequently made aliyah. Consult a property lawyer or accountant to process the retroactive claim - there are deadlines and specific procedures involved.
How do you pay mas rechisha?
Your property lawyer handles the mas rechisha declaration and payment as part of the purchase process. You do not need to file this yourself. The steps are:
- Inform your lawyer that you are an oleh and provide your Teudat Oleh at the start of the transaction
- Your lawyer submits the purchase declaration to the Israel Tax Authority (Form 7002 for a right in land that is not an exempt qualifying residential apartment), and attaches Form 2973 - the request for partial exemption under Regulation 12 or 12A. Without Form 2973 the oleh rates are simply not applied
- The declaration itself is due within 30 days of the sale. In 2026 the fine for filing it late is NIS 310 for every two weeks of delay, and NIS 250 for a late notice
- Payment is due within 60 days of signing the purchase contract (chozeh mecher). Penalties apply for late payment
- The Israel Tax Authority issues a clearance certificate (ishur mas rechisha) which is required to register the property in your name at the Tabu (land registry)
Without paying mas rechisha and obtaining the clearance certificate, the property cannot be registered in your name - so this is not optional or deferrable.
Mas rechisha is the one-time purchase tax on an Israeli property. Regulation 12A gives an oleh buying a single or replacement apartment no tax up to NIS 1,978,745, 0.5% from there to NIS 6,055,070 and 8% above that, against 3.5% and 5% for a regular single-apartment buyer across the same middle range. On a NIS 3,000,000 apartment that is about NIS 5,100 instead of about NIS 45,500. The window runs from the year before you enter Israel until seven years after entry, and the claim is made on Form 2973 attached to the purchase declaration, which is itself due within 30 days of the sale.
Mas rechisha (literally "purchase tax") is a one-time tax you pay directly to the state when you buy real estate in Israel. It is separate from the property price, legal fees, and mortgage costs. Payment is due within 60 days of signing the purchase contract (chozeh mecher), and penalties apply for late payment.
For 16.1.2025 to 15.1.2028 the Regulation 12A bands are: no tax up to NIS 1,978,745, 0.5% from there to NIS 6,055,070, and 8% from NIS 6,055,070 to NIS 20,183,565. Above NIS 20,183,565 the relief does not apply at all. A regular single-apartment buyer has the same zero band but then pays 3.5% to NIS 2,347,040 and 5% to NIS 6,055,070, which is where the whole saving sits.
On an apartment priced at NIS 3,000,000, a regular buyer of a single apartment pays about NIS 45,500 while an oleh pays about NIS 5,100, a difference of roughly NIS 40,000. At NIS 4,000,000 the figures are about NIS 95,500 and about NIS 10,100, so the gap grows to roughly NIS 85,000. The saving is largest in the band between NIS 1,978,745 and NIS 6,055,070, where the oleh rate is 0.5% against 3.5% and 5%.
The olim discount applies for 7 years from your aliyah date. This gives you a generous window to find the right property, get financially settled, and buy when the time is right, so you are not required to rush into homeownership to access the benefit. The benefit applies once only, on a single transaction within that 7-year window, and it applies to the first property you purchase in Israel.
The property must be bought for residential use rather than solely as an investment property, though the article notes this is rarely enforced strictly. It does not need to be your primary residence: olim can claim the benefit on a property they intend to rent out, provided it is their first purchase in Israel and falls within the 7-year window.
Yes. The olim discount can be applied retroactively for property purchased up to one year before your official aliyah date. If you bought an apartment in Israel before formally making aliyah and then made aliyah within 12 months of that purchase, you can file an amended mas rechisha declaration to claim the oleh rates retroactively. This is particularly relevant for people who bought while on a visa or pilot trip. There are deadlines and specific procedures, so consult a property lawyer or accountant to process the claim.
Your property lawyer handles the declaration and payment, so you do not file it yourself. Inform your lawyer that you are an oleh and provide your Teudat Oleh at the start of the transaction. The lawyer submits the purchase declaration to the Israel Tax Authority and attaches Form 2973, the request for partial exemption under Regulation 12 or 12A, within 30 days of the sale. payment is due within 60 days of signing, and the Israel Tax Authority then issues a clearance certificate (ishur mas rechisha). That certificate is required to register the property in your name at the Tabu (land registry), so paying the tax is not optional or deferrable.
The US has no equivalent national property purchase tax; state and local transfer taxes run roughly 0.1% to 2%, and at the up-to-6M NIS range the 0.5% oleh rate compares very favorably. In the UK, Stamp Duty Land Tax for first-time buyers is 0% up to 250,000 pounds and 5% from 250,001 to 925,000 pounds, so the 0.5% oleh band up to 6M NIS (about 1.2M pounds) is considerably more generous. Globally, transfer taxes range from zero to over 10%, and the 0.5% oleh discount makes buying as an oleh significantly cheaper than buying as a regular Israeli resident.
Pour les olim francophones
La Mas Rechisha (taxe d'achat immobilier) est due dans les 60 jours suivant la signature du contrat de vente. Pour un acheteur israélien classique, le taux varie de 0 % jusqu'à environ 1,92 million de shekels, puis 3,5 % à 5 % au-delà. Le statut d'olé hadash (nouvel immigrant) ouvre un barème nettement plus favorable, applicable pendant les 7 années qui suivent la date d'aliyah inscrite sur la Teoudat Olé.
Le barème olé en vigueur en 2025–2026 prévoit 0 % jusqu'à environ 1 978 745 ₪, 0,5 % sur la tranche allant jusqu'à 6 millions de shekels, puis 5 % au-delà. Sur un appartement à 3 millions de shekels, l'économie se chiffre généralement à 60 000–70 000 ₪ par rapport à un acheteur résident standard. La réduction ne s'applique qu'à un seul achat de logement et exige une destination résidentielle (occupation personnelle privilégiée par l'administration).
Bon à savoir : si vous avez acheté un bien en Israël jusqu'à 12 mois avant votre aliyah officielle, votre avocat peut déposer une déclaration rectificative auprès de la Rashout Hamissim (Autorité des impôts) pour récupérer rétroactivement le bénéfice. Conservez systématiquement votre Teoudat Olé et le formulaire 7002 rempli par votre avocat. Le ministère de l'Aliyah et de l'Intégration (Misrad HaKlita) et l'antenne francophone de Nefesh B'Nefesh peuvent orienter vers des avocats immobiliers habitués aux dossiers olim francophones. Pour le détail technique, consultez les sources citées ci-dessus, toutes officielles.