Your guide to money transfers and buying property in Israel

An international money transfer is the process of sending funds from a bank account or financial service in one country to a recipient in another country, typically converted from one currency to another.

A currency exchange rate is the price at which one currency can be exchanged for another. Rates fluctuate constantly based on market conditions, economic data, and geopolitical events.

The mid-market rate is the midpoint between the buying and selling price of a currency. It is sometimes called the interbank rate.

It is the rate you typically see on Google or financial news sites. Our aim is to get your exchange rate as close as possible to the mid-market rate.

The Sha’ar Yatzig is the official representative exchange rate published by the Bank of Israel. It is published Monday to Thursday at 3:30 p.m. and on Friday at 12:15 p.m. (Israel time).

It reflects the mid-market rate at the exact time of publication for different currencies. Learn more on the Bank of Israel website.

Keep in mind that the mid-market rate changes every few seconds, so the rate can differ just minutes or hours after the Sha’ar Yatzig is published.

Licensed currency exchange companies typically operate with lower overheads than retail banks and specialize solely in currency exchange, allowing them to offer tighter margins on exchange rates.

The exchange rate shown when you request a conversion is your net exchange rate. It is calculated from the mid-market rate minus IsraTransfer’s margin.

Source of funds refers to the origin of the money being transferred — for example, a salary, property sale, inheritance, savings, or investment. Financial institutions are legally required to verify it.

Source of funds documents are required to comply with strict banking regulations. These measures help prevent money laundering and ensure transparency in financial transactions. As a financial service provider, we are responsible for verifying the origin of funds and meeting regulatory requirements.

The documents required depend on the origin of the funds. Common examples include bank statements, pay stubs, property sale contracts, investment statements, and loan agreements. Every case is assessed individually.

AML refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. All licensed financial service providers must comply with AML requirements.

KYC is the process by which financial institutions verify the identity of their clients. It typically involves providing two government-issued photo IDs.

FATCA stands for the Foreign Account Tax Compliance Act. It is a US regulation requiring financial institutions worldwide to report accounts held by US persons. Anyone who is a US citizen or holds a US passport, green card, or Social Security number may need to complete a FATCA declaration.

SWIFT is the global messaging network banks and financial institutions use to securely send and receive information about financial transactions. International bank transfers are typically routed via the SWIFT network.

A beneficiary is the person on whose behalf, or at whose instruction, a payment is made. A beneficiary can be an individual or a legal entity. If the beneficiary is a company, its controlling shareholders are also considered beneficiaries.

An IBAN (International Bank Account Number) combines the country, bank, branch, and account number in a single field. In Israel, an IBAN is made up of 23 characters and starts with IL.

Transfer times vary depending on the currencies involved, the destination country, and when funds are received. Many transfers clear within one to three business days.

The Israeli New Shekel is the official currency of Israel, shown by the symbol ₪ and the currency code ILS. It is issued and regulated by the Bank of Israel.

The shekel’s value against other currencies is influenced by factors including Israel’s economic performance, Bank of Israel interest rate decisions, regional geopolitical developments, global risk sentiment, and foreign investment flows.

A licensed money service business (MSB) is a company authorized by a financial regulator to provide currency exchange and money transfer services. In Israel, IsraTransfer is licensed by the Israel Securities Authority (ISA).

A forward contract lets you book an exchange rate today for a transfer that will take place on a set future date, so you know exactly what your transfer will cost.

Licensed currency exchange companies are regulated by financial authorities and must meet strict standards for compliance and security. Always check that a company holds a valid license before transferring funds.

Traditional banks offer currency conversion as one of many services and typically apply wider margins on exchange rates. Specialist currency exchange companies focus exclusively on currency exchange and often offer more competitive rates and a more personal service.

Yes. Clients can transfer funds abroad from Israel. Some documents will need to be completed first, so please contact our team before making a transfer so we can help.

Payment is typically made in Israeli New Shekels, so the exchange rate between your home currency and the shekel plays a role in the total cost.

When you transfer funds from overseas to complete a purchase, the exchange rate at the time of transfer directly affects how much you pay in your home currency. A movement of even a few percent on a large sum can make a significant difference to the cost.

Timelines vary, but a standard resale purchase typically takes two to four months from signing the initial agreement to completion and registration. Off-plan purchases can take considerably longer, depending on the construction schedule.

In Israel, the buyer and seller are typically each represented by their own lawyer. The buyer’s lawyer carries out due diligence on the property, reviews contracts, handles registration at the Tabu, and ensures funds are transferred correctly. Using an independent lawyer is strongly recommended.

A shovar is a payment voucher used when buying a new-build property. Each payment to the developer is made with a shovar, which sends the money to the project’s supervised bank account. Payments are usually made in stages (shovarim) at milestones such as signing, construction phases, and completion.

To make a shovar payment, we need the original shovar, which is taken to the bank to be stamped. Once you have provided it, you can request the payment through our online client portal.

When you buy off-plan in Israel, the developer is legally required to provide a bank guarantee (Arevut Bankait) to protect your payments if the project is not completed. This is a key document you should receive and keep.

Buying “on paper” means buying a property that has not yet been built — similar to buying off-plan. You commit to the purchase based on architectural plans, and payment is typically made in stages as construction progresses.

Mas Rechisha is the purchase tax paid by the buyer when acquiring property in Israel. The rate depends on factors such as residency status, whether it is your first property in Israel, and the property’s value. Rates differ for Israeli residents, new immigrants, and foreign residents.

Arnona is the municipal property tax in Israel, paid by whoever occupies the property — owner or tenant. Rates are set by each municipality and vary by location, property size, and type of use.

Tabu refers to the Israel Land Registry (Lishkat Rishum Mekarke’in). Registering a property in the Tabu confirms legal ownership and is a standard part of completing a purchase.

Some properties in Israel are built on land leased from the Israel Land Authority (formerly the Minhal) rather than privately owned. Buyers of these properties hold a long-term lease rather than full ownership of the land — an important distinction to understand before buying.

The Iriya is the local municipality. When buying property, you may need to deal with the Iriya on planning permissions, Arnona assessments, and other local authority requirements.

A Shtar Mechira is the sale deed — the formal legal document that records the transfer of ownership from seller to buyer.

A notary in Israel is a lawyer authorized to authenticate legal documents. One is commonly needed when a foreign resident buys property in Israel — for example, to verify signatures on a power of attorney or other legal declarations.

A Yipuy Koach is a power of attorney — a legal document authorizing another person, often a lawyer, to act on your behalf in completing a purchase. It is commonly used by overseas buyers who cannot be in Israel throughout the process.

Mashkanta is the Hebrew word for a mortgage — a loan secured against a property. Israeli banks offer mortgages (mashkantaot) to eligible borrowers, and the Bank of Israel sets rules such as loan-to-value limits.

Pinui Binui is an urban renewal program in Israel in which older residential buildings are demolished and rebuilt. Residents move out temporarily and return to a new, larger apartment in the same location. Buyers should check whether a property is part of a Pinui Binui scheme.

Tama 38 is a national urban renewal plan that allowed older buildings to be reinforced or rebuilt to meet earthquake standards, with developers receiving rights to add floors or units in return. It can affect a property’s value and development potential. The national scheme is being phased out, so check the property’s current status.

Mechir Lamishtaken is a government program designed to make housing more affordable for eligible Israeli residents by offering properties below market price through a lottery. It is generally not available to foreign residents or non-citizens.