Before you set out to invest in real estate in Israel,
it is important to understand the types of land in Israel and the laws
pertaining to them. For, although real estate investment in Israel is
profitable and promising, all kinds of land are not subject to ownership
by all. Certain restrictions are levied on the ownership of certain
land.
Types of Land in Israel
Here are the details of the different kinds of land in Israel.
Most
of the land (approximately 80 – 90 percent) is owned by the Government.
A meager eight to 15 percent is privately owned and a negligible
portion is not categorized under any of the two.
The
land owned by the Government is jointly owned by the State, the Jewish
National Fund and the Land Development Authority. The State owns 69
percent of the land, the Land Development Authority and the Jewish
National Fund own twelve percent of the land each.
Land
owned by the Government cannot be sold to either a foreigner or Israeli
citizen. It can only be leased for a long term. However, the laws
pertaining to each one of these vary.
Here are the differences.
Land
owned by the Jewish National Fund is specifically meant for the welfare
of the Jewish community. This land can therefore, be leased only to
members of the Jewish community, whether foreigners or Israeli citizens.
Conversely, land owned by the Development Authority and State can be
leased to anyone from the Jewish community or others.
The
ownership of privately owned land can be transferred by the owner to
any other person, foreigner or Israeli citizen, on abiding by the
respective laws and closing process of buying property in Israel. As
privately owned properties are mostly in the urban areas, they are
highly in demand and are expensive.
Whatever
the type of property, lease and purchase process is tricky. It is
therefore, advisable to hire lawyers well versed in Israeli real estate
law to assist you through the process.
One such is Aharoni law firm