The rate was cut to 3.25% from September 1, 2026 and left unchanged on October 21, 2026. According to the official schedule the next decision is on November 23, 2026, taking effect on November 26.
The mortgage rate and the alternative return are unchanged for now.
Balloon and bullet loans whose interest is paid by the developer are capped at 10% of a bank’s quarterly lending until December 31, 2026 (amendment to directive 329). LTV limits: 75% for an only home, 70% for a replacement, 50% for an investment home; under the directive’s definitions a non-resident falls into the 50% group.
A non-resident’s mortgage in Israel is up to 50% of the price (a conclusion from the text of the directive).
Lease rights to Israel Land Authority land pass to a foreigner only with the approval of the Council chair or the ILA director; a person entitled to repatriate is not considered a foreigner. A foreigner with no other home can be approved for one apartment; inheritance is not covered by the procedure.
Does not affect the amount; adds a step and time to the deal.
From November 1 to November 14, 2026 the 10-year Maccabee bonds are sold at 6.07% (5.91% in the second half of September), maturing on November 1, 2036.
Israel’s dollar bonds return 0.16 points a year more.
From 2025, on top of the 3% surtax on high income, a further 2% applies to capital income (interest, dividends, gains) above ILS 721,560 a year; the threshold is frozen through 2027. Under Tax Authority directive 5/2025, rent that is not a business counts as capital income, and income taxed at the 15% rate is included in the surtax base.
For a typical investor with an apartment in Georgia nothing changes, 15% remains; the part of income above the threshold is taxed at 20%, and the 25% on interest and gains becomes 30%.
Directive 329 (version 13 of June 30, 2026): an only home up to 75% of value, a replacement home up to 70%, an investment apartment up to 50%. The directive has no separate rule for non-residents.
For a rental apartment in Israel, own funds must be at least 50% of the price.
In 2026 residential rental income is exempt up to ILS 5,654 a month, partially up to ILS 11,308; the amount is frozen from 2025 to 2027. Other regimes: 10% of gross income or the general scale with deductible expenses. From the 2024 tax year the lease is attached to the return.
For an apartment in Israel, tax on rent up to the threshold is 0, above it 10% of gross income or the scale.
The treaty entered into force on November 22, 2011 and applies from January 1, 2012; from July 1, 2019 it applies as modified by the OECD multilateral convention. Rental income and gains on selling property may be taxed by the country where the apartment is located (arts. 6 and 13); interest is taxed at no more than 5% in the source country, dividends at 0 or 5%; Israel credits Georgian tax (art. 22).
For an Israeli, the Georgian 5% on rent is credited against Israeli tax under the general scale; under the 15% regime of sec. 122A there is no credit.
An Israeli resident pays 25% on the real gain from selling an apartment abroad; the inflationary part of the gain is exempt.
On a sale after 2 years of ownership the Georgian tax is 0 and the Israeli tax is 25% of the real gain; on a sale within 2 years the Georgian 5% is credited and Israel collects the top-up to 25%.
Interest from financial institutions and on traded securities not linked to the consumer price index is taxed at 15%, other interest at 25%; dividends and gains on shares and funds at 25%, or 30% for a holder of 10% or more.
The site shows 25% for Israeli government and corporate bonds; for non-indexed shekel bonds the correct rate is 15%.
An Israeli resident may pay 15% of gross income from renting out housing abroad (sec. 122A), deducting only depreciation; foreign tax is not credited in this regime. The alternative is the general scale with a credit for foreign tax.
For an Israeli with an apartment in Georgia, rent is taxed either at 15% in Israel with no credit or on the scale with a credit for the Georgian 5%.
The memorandum of the 2026 Economic Plan law proposed section 141ג: platforms would report on landlords with 10 or more transactions and over ILS 8,000 a year, with fines of ILS 20,000 and ILS 1,000 per user. Whether the rule made it into the final text is not confirmed.
Nothing.