There is no need to travel to Paris to feel abroad. A short trip to Netanya and the regions by the sea is enough to make us feel the French atmosphere.
Cities like Ashdod and Ashkelon slowly changed to immigrant absorbents.
Want to feel Americans? Travel to Modi’in and there English is spoken everywhere.
And of course, there are residents from the United Kingdom, South Africa, Europe…
and we are happy for more.
Within the last few years we see many foreign residents interested in acquiring assets in Israel because of the following reasons:
1. Investment.
2. Buying an asset for a relative.
3. Buying a real estate as a vacation home.
4. Other reasons.
The state of Israel is absorbing Jews from all around the world and in the last few years this trend has become more powerful because of many reasons. This may be due to the rising Antisemitism, some Zionist projects like “Taglit” which influence the young to come and leave here or, the economic prosperity that we see in the last few years. Whichever the reasons are we will always continue to hear many languages spoken in our streets.
Foreign residents get tax deductions and exemptions when they purchase a real estate in Israel.
They are not taxed on their gains from the real estate while the local residents do owe taxes on their income from the real estate.
Processing the mortgage application is different for a foreigner than a local resident.
But first let us instate what is the definition of a foreign resident. A foreign resident is a Jewish person who leaves outside of Israel with a foreign income or an Israeli person who leaves abroad.
Usually such a resident can get a mortgage that covers up to 50% of the value of the property. Since
foreign residents earn their income in foreign currency it is possible that the mortgage will be in that currency but it is limited to American dollars, Euro or Yen. That is different than a mortgage written for local residents since a local resident can get a mortgage with foreign currency up to one third of the loan.
Furthermore, a foreign resident as a local resident, has the option to choose from several paths and base his loan according to the finance rate and the market state on the day of acquiring the loan.
As it is for a local resident a foreign resident who applies for a loan has to prove with documents his identity, his ability to earn income and present documents about his bank accounts.
Below is an example of the required documents for a U.S. resident to apply for a mortgage:
1. Last three paystubs.
2. Last three months bank statements.
3. A Passport.
4. Driving license or any other Identification documents.
5. Tax documents like 1040.
6. Credit report and credit score.
7. The title of the acquired asset.
The banks in Israel established specific branches for foreign residents and the mortgage application can be filed from abroad. However the foreign resident needs at some point to be present in Israel in order to sign the application and in order to fulfill other requirements.
Most of the foreign residents are not familiar with the local Israeli bureaucracy and may acquire a loan which is not optimal for their needs. In order to make the process more efficient it is highly recommended that a mortgage adviser, who specialize in foreign residents loan applications, will be consulted and involved in the process. He knows the process and the procedures needed for the loan and will work for the best interest of his client - a better way than a foreigner trying to acquire a loan by himself from overseas. The mortgage specialist will represent you and accompany you in
all the necessary steps from the beginning to the point that the application is approved.
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