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.
For regular Israeli residents buying their first apartment, the tax brackets in 2025–2026 are:
- Up to ~1,919,155 NIS: 0%
- 1,919,155 – 2,276,360 NIS: 3.5%
- 2,276,360 – 5,872,720 NIS: 5%
- Above 5,872,720 NIS: 10%
For a second property or investment property, the rates are much higher (8% on the full amount up to 5.1M NIS).
How much do olim save on purchase tax?
New immigrants (olim chadashim) receive substantially better mas rechisha brackets. As of 2025–2026, the olim brackets are:
- Up to ~1,978,745 NIS: 0% - the zero-bracket is wider than for regular residents
- 1,978,745 NIS – 6,000,000 NIS: 0.5% - a dramatically lower rate than the 3.5–5% paid by regular buyers in this range
- Above 6,000,000 NIS: 5%
In practical terms: for an apartment priced at 3,000,000 NIS, a regular Israeli resident pays approximately 76,000 NIS in mas rechisha. An oleh buying the same apartment pays approximately 10,000 NIS - a saving of ~66,000 NIS. For a 4,000,000 NIS apartment, the saving exceeds 100,000 NIS.
How long are olim eligible for the mas rechisha discount?
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. 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 a mas rechisha declaration (Form 7002) to the Israel Tax Authority, noting your oleh status
- 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 you pay to the state within 60 days of signing an Israeli property purchase contract. As a new oleh you qualify for sharply reduced brackets: 0% up to about 1,978,745 NIS, just 0.5% from there up to 6,000,000 NIS, and standard rates above that, versus 3.5% to 5% for regular first-time buyers in the same middle band. On a 3,000,000 NIS apartment an oleh pays roughly 10,000 NIS instead of about 76,000 NIS, a saving of around 66,000 NIS; on a 4,000,000 NIS apartment the saving exceeds 100,000 NIS. The reduced rates apply to your first property purchase for 7 years from your aliyah date, and can even be claimed retroactively if you bought up to one year before formally making aliyah. Your property lawyer files the declaration (Form 7002) and notes your oleh status, so give them your Teudat Oleh at the start of the transaction.
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 2025 to 2026, the olim brackets are 0% up to about 1,978,745 NIS, 0.5% from 1,978,745 NIS up to 6,000,000 NIS, and standard rates above 6,000,000 NIS. Regular first-time residents pay 0% up to about 1,919,155 NIS, then 3.5% and 5% on higher bands. The 0.5% oleh rate on the large middle band is dramatically lower than the 3.5% to 5% regular buyers pay in the same range.
For an apartment priced at 3,000,000 NIS, a regular Israeli resident pays approximately 76,000 NIS in mas rechisha while an oleh pays approximately 10,000 NIS, a saving of around 66,000 NIS. For a 4,000,000 NIS apartment, the saving exceeds 100,000 NIS. Across the typical 2 to 6 million NIS price range, the savings are usually in the 50,000 to 150,000 NIS range depending on purchase price.
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 a mas rechisha declaration (Form 7002) to the Israel Tax Authority noting your oleh status, 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 oléen 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 Oléet 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.
