What is Mas Rechisha for Olim?

Mas Rechisha is the one-time purchase tax paid to the Israeli government when buying real estate. New Olim within their first 7 years in Israel receive a special discount track paying 0% on the first approximately 1,988,090 NIS and only 0.5% on everything above that, saving tens of thousands of shekels compared to standard rates.

How long do I have to use the Mas Rechisha Oleh discount?

You must sign your purchase contract within 7 years of your Aliyah date to qualify for the Oleh discount rate. After that window closes you will pay the standard Israeli resident rates.

Can I use the Mas Rechisha Oleh discount for an investment property?

No. To qualify for the 0.5% Oleh rate the home must be your primary residence. It cannot be used for a purely investment property.

Can I use the Mas Rechisha Oleh discount more than once?

Yes. You can use the discount twice within your first 7 years — once for a residential home and once for a business property such as an office or shop.

What is the difference between Mas Rechisha and Arnona?

Mas Rechisha is a one-time purchase tax paid when you buy a property. Arnona is the ongoing monthly or bi-monthly municipal tax paid for city services such as trash collection and street lighting. They are completely separate obligations.

Mas Rechisha for Olim (2026): How Much Purchase Tax You’ll Pay in Israel

Q: What if I am married to a non-Oleh?

If at least one spouse is an Oleh Hadash within their 7-year window, you can apply the Oleh discount to the entire purchase price of your joint home.

All About Aliyah
Apr 30
3 min read

Updated: 6 days ago

Oleh the alien the All About Aliyah mascot, holding a clipboard with "PURCHASE TAX." Wears "OLEH" shirt, in a blue background.

Buying a home in Israel is a huge milestone, but the paperwork can be overwhelming. One of the most important things to understand is Mas Rechisha for Olim, as this specific tax benefit can save you thousands of shekels during your first few years in the country.

As an Oleh Hadash (עולה חדש - New Immigrant), the government gives you a massive "discount card" for your first 7 years in Israel. This guide explains exactly how it works, how much you’ll pay, and how to choose the best option for your wallet.

What is Mas Rechisha?

Mas Rechisha (מס רכישה - Purchase Tax) is a one-time "Purchase Tax" you pay to the Israeli government when you buy real estate.

When to pay:
You must pay it within 60 days of signing your purchase contract.
How to pay:
Usually, your lawyer handles the filing, and you transfer the funds to the Tax Authority.
Important:
This is not included in your mortgage. You must have this cash ready in your bank account.

Understanding Mas Rechisha for Olim vs. Standard Rates

In 2026, Olim (עולים - Immigrants) have a unique advantage. You get to choose between two different ways to calculate your tax. You should always pick the one that is cheaper for you.

Option A: The "Oleh Benefit" (Best for Expensive Homes)

This is a special flat-rate discount for new immigrants.

Eligibility:
To qualify for the special rates of Mas Rechisha for Olim, you must sign your purchase contract within seven years of your Aliyah date. If you miss this window, you will have to pay the standard Israeli resident rates.
The 2026 Rule:
You pay 0% on the first portion (up to ₪1,988,090) and a flat 0.5% on everything above that.
Condition:
You must actually live in the home; it cannot be purely an investment property.

Option B: The "Single Home" Track (Best for Cheaper Homes)

This is the standard rate for any Israeli resident who only owns one home.

The 2026 Rule:
It uses "brackets." You pay 0% up to ₪1,978,745, then 3.5% on the next tier, and 5% on the tier after that.

How Much is it? (Calculations & Examples)

Let’s look at how the math works for a home worth ₪3,500,000 in 2026.

Calculation Step	Option A (Oleh Discount)	Option B (Standard Resident)
First ~₪1.98M	₪0 (0%)	₪0 (0%)
Middle Tier	0.5%	3.5%
Upper Tier	0.5%	5.0%
Total Tax to Pay	~₪7,560	~₪70,600

The Result:

In this example, using your Oleh (עולה) benefit saves you over ₪63,000!

Tip: Before you worry about the tax, you need to find the right property! Check out our list of the Best Websites to Find Apartments in Israel (2026 Guide) to start your search.

Frequently Asked Questions (FAQ)

Can I use the discount for an investment property?

No. To get the 0.5% rate, the home must be your primary residence.

What if I am married to a non-Oleh?

If at least one spouse is an Oleh Hadash (עולה חדש) within their 7-year window, you can apply the discount to the entire purchase price of your joint home.

Can I use the discount more than once?

Yes. You can use it twice within your first 7 years—once for a home and once for a business property (like an office or shop).

Is this different from Arnona?

Yes. Mas Rechisha (מס רכישה) is paid once when you buy. Arnona (ארנונה - Municipal Tax) is the monthly/bi-monthly city tax you pay for services like trash and street lights.

Final Tip - Skip the Stress, Keep the Savings

Navigating Mas Rechisha for Olim doesn't have to be complicated. By choosing the right tax track and working with experts who understand the Aliyah process, you can ensure your move home is as affordable as possible.

While the market average is a 2% agent fee, we’ve ditched that standard to make Aliyah affordable for everyone.

Whether you’re moving solo or as a community, we offer the most competitive rates in the country:

Standard Olim Rate:
1% + VAT (Exactly half the market average).
Group Aliyah Rate:
0.5% + VAT (For groups of 5 or more families).

Navigating the Israeli property market is stressful, but you don’t have to do it alone. Let’s find your home, and your community, together!

Also worth reading:

How to Check Real Estate Prices in Israel — use the Nadlan Gov database to make sure you're not overpaying before you sign anything.

Ready to Buy Property in Israel?

We help Olim navigate the full buying process — including maximizing your Mas Rechisha discount. We charge 1% commission, half the standard 2% market rate.

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