If you own or are considering buying property in Israel, you have certainly encountered the term Hahira Meouvenet (חכירה מהוונת). Unlike France where full ownership is the norm, a large portion of land in Israel belongs to the State.
Here is what you need to know about this particular legal status and its advantages for property owners.
What is Hahira Meouvenet?
In Israel, approximately 90% of land is owned by the State through the Rami (Israel Land Authority). When you "buy" an apartment on this land, you are actually signing a Hahira (emphyteutic lease), typically for a duration of 49 or 98 years.
The term Meouvenet means "capitalized". This means that the lessee (the property holder) has prepaid all rents for the entire duration of the lease upfront.
📌In practice, Hahira Meouvenet confers rights very close to full ownership, with legal stability recognized by the entire Israeli banking system.
Advantages of Capitalization
Opting for Hahira Meouvenet offers three major advantages:
1. Exemption from Annual Rent
You no longer owe annual rent (Dmei Hahira) to the State. The full amount was capitalized at the time of acquisition.
2. No Consent Fees (Dmei Haskama)
When reselling a capitalized property, you do not need to share a portion of the capital gain with the Rami to obtain its approval. This greatly simplifies and speeds up transactions.
3. Easier Financing
Israeli banks grant real estate loans (Mashkanta) far more easily on Hahira Meouvenet properties because the collateral is considered stable and secure.
Taxation and Rights: Key Points
Under Israeli law, a Hahira of more than 25 years is considered a "Real Estate Right" (Zkhout be-Mekarkein). Consequently:
Mas Rekhisha (Purchase Tax): Acquiring such a right is subject to Mas Rekhisha, just like a full property purchase.
Zkhout she-be-Yosher (Equitable Right): The holder benefits from strong legal protection against potential creditors of the seller, even before final registration at the Tabu.
Towards Full Ownership?
In recent years, the State of Israel has launched an important reform allowing, in many urban areas, the transfer of capitalized leases to full private ownership — free of charge or at minimal cost.
Simplification of property administrative management
Increased value of your real estate assets
Permanent elimination of any link with the Rami
Easier inheritance and transfer to heirs
Eligibility for this transfer depends on the zone type and conditions set by the Rami. Prior legal verification is essential.
In Summary
Closest status to private ownership in Israel for state land
Peace of mind for every investor
No recurring administrative fees
No surprises at resale
Easier access to bank financing
Enhanced legal protection (Equitable Right)