Your real estate agents and property lawyers will charge you a range of fees when you purchase property. These add up quickly, but you will have to pay even more fees and taxes for owning property.
As a home owner, Israel requires you to pay a purchase tax (mas rechischa) and value added tax on any property purchase. Together, these add up to about 5-8% of the purchase price of your property.
As a resident, you must also pay a monthly municipal tax (arnona) for your property. Your area determines how much municipal tax you pay.
New immigrants (oleh) can receive a discount of up to 70% on the purchase tax. They can also receive a discount of up to 90% on the municipal tax. Forms for the purchase tax reduction are regulated by the Ministry of Immigrant Absorption. To obtain a reduction in the municipal tax, new residents must register at the local municipal centre.
If you live in an apartment or a duplex, you will also have to pay a monthly vad bayit (building maintenance fee). If you have your own free-standing home, you might have to pay a fee to your home owner's association.
The main provider of electricity is the Israel Electric Company. Electricity is billed per kilowatt hour of usage. If you bring electronics from other countries, you may need electrical adapters because electricity runs at 220-240 volts.
Gas can be provided to an entire building, which means that you pay for the gas you use. In many stand-alone houses, you will have a private gas tank which you must have refilled.
Water is provided by the national company Mekorot. Mekorot delivers water to local municipal centres, which charge you for usage. Water bills are calculated based on your personal usage (or building usage for some apartments) and the sewage which is processed from your building.
Utilities companies bill you monthly, every two months, or quarterly.
Banks will sell you a standard insurance policy on your Israeli property (your property must be insured before you can get a mortgage). This covers fire, wind and water damage.
Private home insurance agencies will give you more extensive coverage than the banks for a slightly higher fee. Premium coverage includes earthquake damage and damage caused by theft. The average annual premium property insurance is about 450 shekels for every 100,000 shekels of property covered.
Insurance agencies also sell contents insurance. There are two types of contents insurance: general and all-risk. General contents insurance covers jewellery, electronics and theft. All-risk insurance includes photographic equipment and covers jewellery damaged or stolen outside of the home. The annual price for premium property insurance is about 500 shekels for every 100,000 shekels of property covered.