Buying property in Israel is an exciting step – but it’s crucial to understand exactly what you’re buying when it comes to land rights.
One important fact many buyers overlook is that about 93% of all land in Israel is owned by the State or by public bodies, and only about 7% is truly privately owned. Most lands and properties are managed by the Israel Land Authority (רשות מקרקעי ישראל). This means that in many cases, you are not purchasing the land outright but leasing it long-term.
Below is an overview of the main types of property rights in Israel and the key points you should always check:
1. Full Private Ownership (“Freehold”)
This is the most straightforward and desirable scenario. When buying a house on privately owned land, or an apartment in a building fully registered in the Israeli Land Registry (Tabu), the land or apartment unit is owned outright – with no expiration date. The owner has full rights to sell, mortgage, or pass the property on to heirs. This is classic freehold ownership.
2. Long-Term Lease (“Leasehold” or “Hahira” in Hebrew)
The majority of land in Israel is leased from the State for extended periods, typically 49 or 98 years, although shorter lease periods also exist. In these cases, you pay for the property like any other purchase, but the land remains State-owned.
It’s important to check:
• How many years remain on the lease?
• Has the full lease fee been paid in advance?
• Are there any annual payments or fees?
• What happens when the lease expires – is there an automatic renewal or an additional payment required?
3. State-Owned Land in Registration Process
Some properties are in the process of settlement of rights, meaning the land is still officially State-owned but is intended to be transferred to private ownership or fully registered in the Tabu. Until registration is finalized, ownership is essentially a promise.
Important checks include:
• The current stage of the registration process.
• Any legal claims or disputes.
• Expected timeline for completion.
4. Long-Term Lease from Private Entities
In certain cases, land is leased from private entities rather than the State. A well-known example is church land in Jerusalem. Here, it is especially important to check:
• How much time remains on the lease?
• Are there options to renew?
• What happens if the landowner chooses not to renew the lease?
Sometimes, a property or apartment is owned by a Limited Company (Ltd.) that leases it out. In these situations, you should verify:
• Whether the company is still active and in good standing with the Israeli Companies Registrar.
• Whether the purchase involves acquiring shares in the company.
• Whether the company has an active board of directors authorized to transfer land rights or company shares.
In addition, when rights are registered under State or private ownership and a long-term leaseholder wishes to transfer these rights, it may be necessary to obtain the landowner’s consent in advance — whether the transfer is by sale agreement or inheritance.
5. Agricultural Land, Kibbutzim & Moshavim
In rural areas, you may encounter allocated use rights, where the State owns the land, allocates it to an agricultural cooperative, and the cooperative grants usage rights to its members. If you are purchasing a farm or agricultural plot, check:
• Whether residential use is permitted.
• Applicable rules or restrictions.
• Any required payments to the Israel Land Authority if you intend to change the land’s use.
* Buying an Apartment “On Paper” from a Developer
When purchasing an apartment “on paper” directly from a developer or contractor, the buyer’s rights are usually not immediately registered in the official Land Registry. Instead, the purchaser’s rights are recorded in the developer’s internal records and/or with the developer’s legal counsel, who keeps a private registry of buyers in the future building.
The actual registration of the land and the individual apartment units in the condominium registry (the future “Tabu”) takes place only after the project is completed and officially occupied.
In the meantime, the buyer’s rights are contractual only – and protected by bank guarantees or contractor guarantees for each payment made, as required by Israeli law.
Final Takeaway
Two properties may look identical, but legally they can differ greatly. To protect your investment:
• Always obtain an updated land registry extract (Nesach Tabu) or rights certificate.
• Check whether the current ownership status affects your ability to take out a mortgage, and whether it is possible at all.
• Confirm all lease terms and future payment obligations.
• Fully understand what rights you are acquiring before signing anything.
Buying real estate in Israel is a significant decision. Careful checks and proper legal guidance will help you avoid unexpected costs and complications down the road – and ensure that your new property is truly yours.
We’ll be glad to assist you with your property purchase in Israel and any related matters.
