Are there any tax benefits for having a mortgage in Israel?
In Israel, mortgage interest is not tax-deductible for residents. However, foreign property owners may be able to deduct mortgage interest on their home country’s tax returns, depending on local tax laws, itemization rules, and eligibility requirements.
While mortgage interest does not offer tax benefits in Israel, private landlords should be aware of tax considerations if they rent out their property. Rental income may be tax-exempt up to a certain threshold, subject to a flat 10% tax option, or taxed at marginal income tax rates where deductible expenses, including interest, can be applied.
Given the complexity of cross-border taxation and potential rental income considerations, consulting with a tax professional is highly recommended to ensure compliance and maximize available benefits.
This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.
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