Section 9(c1c)(4) defines a single home as the buyer's only apartment in Israel and the Area. A villa in Romania is not counted.
Up to NIS 1,978,745 there is no purchase tax on a single home. The brackets are frozen until 15 January 2028.
On a NIS 2.5 million apartment: about NIS 20,538 as a single home, against NIS 200,000 as an additional home.
Section 49B(2) looks at a single home in Israel and the Area, held for at least 18 months. Romanian property is not counted for an Israeli resident.
Someone who moved to Romania and owns a villa there is treated as having a home in their country of residence, and the exemption is at risk.
Single home and property in Romania: the short answer
Yes, in most cases. Israel's Real Estate Taxation Law defines a "single home" as the buyer's only residential apartment "in Israel and the Area". A villa or apartment in Romania does not count. So an Israeli resident who owns property in Romania and has no home in Israel will get the single-home purchase tax brackets when buying a home in Israel. The same principle applies to the capital gains tax exemption on selling a single home. The important exception: anyone who has stopped being an Israeli resident.
This is one of the first questions families ask me, and rightly so. For a family with children, the difference in purchase tax can reach hundreds of thousands of shekels, and nobody wants to discover it on signing day in Israel.
What the law says, word for word
The definition is in section 9(c1c)(4) of the Real Estate Taxation Law (Capital Gain and Purchase) (in Hebrew): a "single home" is "a residential apartment that is the buyer's only apartment in Israel and the Area".
Five words do all the work here: "in Israel and the Area". The tax authority does not ask how many properties you own worldwide. It asks how many residential apartments you own within that territory.
For Israeli purchase tax, the law counts only apartments "in Israel and the Area". A villa in Romania is not counted.
But there is another condition that is easy to miss: the benefit is given to an "individual who is an Israeli resident". Anyone who has already moved their centre of life to Romania plays by different rules. More on that below.
What it is worth in shekels: an example
The purchase tax brackets were frozen in the Arrangements Law, and according to a Bizportal report (in Hebrew) they will not be updated until 15 January 2028. These are the brackets in force as of October 2026:
| Bracket | Single home | Additional home |
|---|---|---|
| Up to NIS 1,978,745 | 0% | 8% |
| NIS 1,978,745 to 2,347,040 | 3.5% | 8% |
| NIS 2,347,040 to 6,055,070 | 5% | 8% |
| NIS 6,055,070 to 20,183,565 | 8% | 10% |
| Above NIS 20,183,565 | 10% | 10% |
Assume you buy an apartment in Israel for NIS 2,500,000, you own a villa in Romania, and you have no other home in Israel:
- As a single home: 0% on the first part, 3.5% on NIS 368,295 (about NIS 12,890) and 5% on NIS 152,960 (about NIS 7,648). About NIS 20,538 in total.
- If it counted as an additional home: 8% from the first shekel, that is, NIS 200,000.
The difference, about NIS 179,000, is exactly why this question matters. The calculation is for illustration only; the actual assessment is set by the Israel Tax Authority based on your declaration.
The other side: selling the Israeli home and the capital gains exemption
The same logic appears on the selling side. Under section 49B(2) of the law (in Hebrew), the capital gains tax exemption is given when the apartment sold is "the seller's only apartment in Israel and the Area", provided you have held it for at least 18 months since it became a residential apartment, and you have not sold another apartment with such an exemption in the 18 months before the sale.
Here too, the property in Romania is not counted. Someone who owns one apartment in Tel Aviv and a villa in Balotești, and sells the Tel Aviv apartment as an Israeli resident, can claim the exemption as if they had no other property. Bizportal covered the same point (in Hebrew) back in 2024.
And on the Romanian side? Selling the property in Romania is taxed in Romania at 3% or 1% of the transaction value, and reported in Israel under the Income Tax Ordinance. That is a different world entirely, described in our article on tax when selling property in Romania.
For Israeli purchase tax, the law counts only apartments "in Israel and the Area". A villa in Romania is not counted.
The trap: when you move to live in Romania
This is where the expensive mistake lies. Both benefits I have described rest on you being an Israeli resident.
Purchase tax. The reduced brackets are given to an "individual who is an Israeli resident". The law extends the definition to someone who, within two years of the purchase, becomes an Israeli resident for the first time or a senior returning resident, but someone living in Romania who buys an apartment in Israel as a non-resident will usually pay at the additional-home brackets.
Capital gains exemption. Section 49A(a) (in Hebrew) gives the exemption to an Israeli resident, or to "a non-resident who has no residential apartment in the country where they are resident". And the law adds that a non-resident is treated as having an apartment in their country of residence unless they provide confirmation from the tax authorities there that they have none.
In plain terms: once you are a Romanian resident and own a villa there, that villa does count. Anyone planning a move, and also a sale of their Israeli home, needs to work out the right order of steps before packing. Exactly when you switch from one residency to the other, I explained in our article on tax residency in Israel and Romania.
Spouses and children: who counts as "one buyer"
The law treats the buyer, their spouse (except a spouse who permanently lives separately) and unmarried children under 18 as one buyer.
Two practical consequences:
- If your spouse is registered as the owner of an apartment in Israel, you are not a "single home" buyer, even if the apartment is not in your name.
- Registering the Romanian villa in the name of a spouse or child changes nothing for purchase tax, simply because it is not counted anyway.
Whose name to register the Romanian property in is a question of inheritance, mortgage and marital property regime, not of Israeli purchase tax.
What does change: reporting and tax on income from Romania
The fact that the Romanian property is not counted for purchase tax does not make it invisible to the tax authority. An Israeli resident is taxed on worldwide income. Renting out the villa, selling it, and even transferring the money to buy it can require filing an annual return in Israel. These are separate rules, and I set them out in our article on reporting to the Israel Tax Authority. How the treaty prevents double taxation is covered in our guide to the Israel–Romania tax treaty.
Checklist before signing in Israel
- Count only apartments in Israel and the Area, including those of your spouse and minor children.
- Check that you are still an Israeli resident on the purchase date, under the centre-of-life test.
- Keep the Romanian purchase documents, because you will need them for other reports.
- Planning a move? Set the order of actions (sale, purchase, move) before you start.
- Declare correctly. The declaration to the tax authority is made by the lawyer handling the Israeli transaction. Tell them about the Romanian property, even though it is not counted.
Frequently asked questions
Does an apartment in Romania count as an additional home for Israeli purchase tax?
No, as long as you are an Israeli resident. The Real Estate Taxation Law defines a single home as the buyer's only apartment in Israel and the Area, so property in Romania is not counted. Someone with no home in Israel will pay purchase tax at the single-home brackets.
If I own a home in Israel and buy a villa in Romania, will I pay purchase tax in Israel?
No. Israeli purchase tax applies to buying real estate in Israel. Buying in Romania involves Romanian costs, such as the notary, registration and, on a new home, VAT, but not Israeli purchase tax. The details are in our article on the costs of buying in Romania.
Can I sell my Israeli home with the capital gains exemption if I own property in Romania?
As an Israeli resident, the Romanian property is not counted, because the single-home exemption looks at apartments in Israel and the Area. You must also meet the other conditions, such as holding the home for at least 18 months. As a non-resident, the picture is different and you need confirmation from the tax authorities in your country of residence.
What happens if I moved to Romania and bought an apartment in Israel?
A non-resident is usually not entitled to the single-home brackets and will pay at the additional-home brackets: 8% up to NIS 6,055,070 and 10% above it. The law includes an exception for someone who becomes an Israeli resident for the first time or a senior returning resident within two years of the purchase.
Can my spouse hold the Israeli home while I buy as a single-home buyer?
No. The law treats spouses, except a spouse who permanently lives separately, and minor children as one buyer. Your spouse's apartment in Israel counts for you too.
The bottom line
For Israeli purchase tax and the capital gains exemption, the Romanian property usually changes nothing, because the law counts only apartments in Israel and the Area. What does matter is your residency. As long as you are an Israeli resident, you are on the safe side. On the day you move, your planning should already be in place.
I will mention it once: we are building Compass on the Lake, 29 villas on a private street by a lake in Balotești, and anyone who also owns a home in Israel should check this question before any purchase, with us or anywhere else. If you would like to go through your own scenario, book a 30-minute call with me. Together we will prepare the list of questions for your lawyer and accountant in Israel.
Moti Azulay, Compass Group Romania
Sources and data: Real Estate Taxation Law (Capital Gain and Purchase), sections 9(c1c), 49A and 49B, updated version (in Hebrew) · Israel Tax Authority · Bizportal: 2026 purchase tax brackets and their freeze (in Hebrew) · Bizportal: property abroad, taxation and exemptions, 2024 (in Hebrew) · Income Tax Ordinance, updated version (in Hebrew) · Midrag: does an apartment abroad count as a first home (in Hebrew).
This article is for general information only and is not legal, tax or financial advice. The brackets are correct as of October 2026 and may change. Residency and eligibility for the exemption depend on your personal circumstances, so before any transaction in Israel, consult a lawyer or accountant who specialises in real estate taxation.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
