Can two non-residents buy an Israeli apartment together?

Siblings pooling an inheritance, two friends splitting a Jerusalem pied-a-terre, a pair of investors sharing a Haifa rental: Israeli law lets non-residents buy property together without any special permission. What catches people out is not the purchase. It is the tax arithmetic on the way in and what happens years later when one owner wants out.

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Detailed Explanation

Nothing in Israeli property law restricts joint ownership by non-residents. Two or more foreign buyers can appear on the purchase agreement (heskem mecher) and be registered at the Land Registry (Tabu) as co-owners, each holding a defined fraction, commonly half each. The general mechanics of a non-resident purchase, from opening a shekel account to signing by power of attorney, are set out in the guide to how non-residents buy property in Israel.

Purchase tax (mas rechisha) is where joint buyers should slow down. Each buyer is assessed separately on the value of their own share, not on the whole apartment. Two unrelated non-residents buying an NIS 4M apartment in equal shares are each taxed on an NIS 2M share. That matters because non-residents generally pay the higher purchase-tax brackets rather than the reduced single-home resident rates, a distinction drawn out in Israeli purchase tax for non-residents. Spouses and their minor children are treated as one family unit and cannot multiply reliefs, but unrelated co-buyers are assessed independently of one another.

Default co-ownership under the Land Law 1969 is a tenancy in common, and it carries a risk many buyers never see coming. Under Section 37 of the Land Law 1969, any co-owner can demand dissolution of the co-ownership at any time, which can force a sale of the whole apartment if the others will not buy them out. This is why co-buyers should sign a co-ownership agreement covering who can sell, rights of first refusal, how running costs are shared, and what happens in a deadlock. The mechanics of forcing or resisting a split are examined in co-owned Israeli property partition for non-residents.

Joint ownership in Israel also does not carry the automatic right of survivorship that some common-law buyers assume. When one co-owner dies, their share passes through their estate under the Succession Law 1965, not automatically to the surviving co-owner, unless the parties structured it deliberately. Non-resident co-buyers should align their wills with the ownership split so that a death does not pull a stranger's heirs into the apartment beside them.

In Practice: Under the Real Estate Taxation Law 1963 each co-buyer self-reports and pays purchase tax on their own share to the Israel Tax Authority (Rashut HaMisim) within 60 days of signing the purchase agreement. On an NIS 2M half-share bought by a non-resident, purchase tax at the base non-resident rate of 8% is about NIS 160,000. Under Section 37 of the Land Law 1969 any co-owner can later demand dissolution of the co-ownership, so a co-ownership agreement should be signed alongside the purchase, not bolted on afterward.

Key Considerations

• Two or more non-residents can co-own an Israeli apartment with no special permission.
• Purchase tax is assessed on each buyer's share separately, at non-resident rates.
• Section 37 of the Land Law 1969 lets any co-owner force dissolution; a co-ownership agreement is essential.
• There is no automatic survivorship; a deceased co-owner's share passes by succession.
• Joint financing means each buyer's income and status affect whether a mortgage is approved.

When to Consult a Lawyer

This question typically requires professional legal advice when:

• Co-buyers are contributing unequal amounts and want the title and tax to reflect that.
• One buyer is an Israeli resident and the others are not, changing the purchase-tax picture.
• You want a co-ownership and exit agreement drafted before you sign the contract.

A qualified Israeli attorney should structure the shares and the co-ownership agreement before you sign the purchase contract.

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Speak With an Israeli Attorney

We act for groups of non-resident buyers, split the title and purchase-tax reporting correctly, and draft the co-ownership and exit terms that stop a joint purchase from turning into a dispute.

Contact us for a confidential initial consultation.