Real Estate in Judea and Samaria - Merkaz Real Estate Brokerage and Marketing | מרכז הנכסים

In the last decade, many couples and families are examining the possibility of moving and buying real estate in Judea and Samaria.

Those who choose to move and reside beyond the Green Line do so mainly for ideological and settlement considerations.

Here, we will review all aspects of purchasing real estate in Judea and Samaria. What exactly is being purchased in land or property, and of course, we will review all aspects of taxation, capital-gains tax, purchase tax, and betterment levies in such a transaction...

Highlights for real estate transactions in Judea and Samaria

There are several significant differences in executing a real estate transaction in Judea and Samaria that distinguish it from executing a real estate transaction within the borders of Israel. It is very important to understand and recognize the implications before entering into a transaction.

• The purchase and sale process in Judea and Samaria is different from the Israeli process:

Planning and building laws, taxation on transactions, and of course, the registration of the transaction with the managing bodies differ significantly from what is customary in a real estate transaction within the borders of Israel.

The process of purchasing a second-hand apartment in Israel differs from the process in Judea and Samaria, as opposed to purchasing a contractor's apartment in the country.

Do not be afraid; the guide will explain all the changes between a real estate transaction in Judea and Samaria and a real estate transaction in Israel.

• What laws is a transaction in Judea and Samaria subject to?

Israeli law does not apply to Judea and Samaria, nor to real estate sale transactions. In the areas of Judea and Samaria, it is subject to Jordanian law and the orders of the Israeli military government.

• Where do you obtain rights approval for land in Judea and Samaria
  There is a division of lands located in Judea and Samaria between privately owned lands and state lands (lands under abandoned property) which are managed by the Civil Administration that oversees the lands held by the state.

• Right of use: Some of the lands held by the State of Israel are granted to the applicant to purchase the rights, a right of use.

The right of use grants the recipient the use of the land, while retaining the right with the state to request that the recipient vacate the property and cease using it in exchange for compensation at any given moment.

• Mortgage in Judea and Samaria: The financing rate for a mortgage that the bank approves in a real estate transaction in Judea and Samaria is lower compared to a transaction within the borders of the State of Israel, and this is an important tip to know before purchasing an apartment in Judea and Samaria.
• Capital-gains tax and purchase tax in Judea and Samaria: A real estate transaction in Judea and Samaria is subject to the provisions of Israeli real estate taxation, but it is important to ensure that no double payment is demanded based on Jordanian law.

 Which bodies manage the registration of rights in Judea and Samaria?

The Civil Administration – The administration is the body responsible for government and abandoned property in Judea and Samaria and, of course, manages the lands in the settlements of Judea and Samaria.

The address of the administration is in Beit El, Zip code: 9063101

The administration's roles include deciding on matters related to land ownership in Judea and Samaria, as well as all matters related to planning and construction in Judea and Samaria, and also to regulate the issue of rights registration.

Tabu Office in Judea and Samaria – There are 9 branches of the Civil Administration that serve as Tabu offices in the territories of Judea and Samaria.

The Settlement Division (Hatlal) of the Zionist Organization – The division is located in the Benjamin headquarters and manages the registration of land rights in lands that are under the state.

The address of the Settlement Division is King George 48, Jerusalem.

Mortgage Company – There are many mortgage companies managing their assets in Judea and Samaria, but alongside this, there are three very large companies that have been granted the right to manage both the registration as a mortgage company and the registration in the Judea and Samaria administration.

Which settlements are defined as outside the Green Line?

List of settlements outside the Green Line:

What is considered the area of Judea and Samaria?

The Judea and Samaria area includes the land west of the Jordan River up to the armistice line until 1967 (the Green Line). Judea and Samaria have other names such as: "the West Bank", "Yosh", and "Ayoosh".

Mortgage for property in Judea and Samaria

As of 2023, it is recommended to request a preliminary mortgage approval from banks in Israel, especially when it comes to property located outside the Green Line.

Most banks in Israel currently set the financing rate in Judea and Samaria around 60%, but there are certain cities like Ma'ale Adumim that receive regular financing similar to that provided within the State of Israel.

When purchasing a property from a contractor, it is advisable to know that the financing is based on "building stages" and the financing rate usually provided is up to 70%, so the payment made to the contractor is based on the progress of construction.

An important tip before purchasing in Judea and Samaria from a contractor is to obtain a sample of the sales agreement with the contractor and to coordinate with the mortgage bank that will approve the payment schedule agreed upon between the buyer and the contractor.

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