Real estate agency fees in Tel Aviv follow a unique structure, distinct from US, European, and other international markets. Whether you’re buying, selling, or renting property, here’s exactly what professional representation costs and the value you receive. International buyers should also review our guide for foreigners buying in Israel.
Standard Commission Structure in Israel
Here’s what you’ll encounter across Tel Aviv’s market:
For property sales:
- Buyer’s agent: 2% + VAT (18%)
- Seller’s agent: 2% + VAT (18%)
For rentals:
- Leases 6 months and longer: 1 month’s rent + VAT (18%) from both tenant and landlord
- Leases under 6 months: Typically 10% of the total lease value + VAT (18%)
The key difference from other countries: In Israel, both the buyer and seller each pay their own agent’s commission separately. Unlike the US or UK where the seller typically covers both sides, Israeli real estate transactions split the cost. If you’re buying, you pay your agent. If you’re selling, you pay yours.
Let’s break down what this actually costs. On a ₪3,000,000 apartment purchase (mid-range for Tel Aviv):
- Base commission: ₪60,000 (2% of ₪3,000,000)
- VAT at 18%: ₪10,800
- Total cost: ₪70,800
That’s per side. Both buyer and seller each pay this amount to their respective agents.
For rentals at ₪8,000 per month for 12 months:
- Base commission: ₪8,000 (one month’s rent)
- VAT at 18%: ₪1,440
- Total cost: ₪9,440
Both tenant and landlord each pay this to their agents.
Important about VAT: Israel increased its VAT rate from 17% to 18% in January 2025, so older information online may show 17%. Calculate with the current 18% when budgeting.
How Real Estate Agents Work Together in Israel
In Israel, most real estate deals involve two agents working together through what’s called “shituf pe’ula” (cooperation). One agent represents the seller (listing agent) and another represents the buyer. Each agent is paid by their respective client—the seller pays their agent, the buyer pays theirs.
This cooperation system is standard practice and benefits everyone. When agents work together across the market, your property gets maximum exposure (if selling) or you get access to more listings (if buying).
Sometimes two agents also cooperate to serve a single client, splitting the commission between them. For example, if you’re buying an apartment, your agent might split their 2% commission with another agent who helped find the property or introduced you as a client. For a full walkthrough of the buying process, see our guide to buying property in Israel.
Is the Commission Negotiable?
The rates above represent standard market pricing in Tel Aviv. While these are the typical rates you’ll encounter, commission structures can sometimes be discussed in specific circumstances.
Factors that may influence rates:
Market conditions: During strong seller’s markets when properties move quickly, there may be some flexibility. In slower markets where properties sit longer, agents typically hold to standard rates to compensate for extended marketing periods.
Exclusivity agreements: If you’re signing an exclusive representation agreement—meaning you’ll work only with that agent for a set period—there’s sometimes room for discussion. Agents value the guarantee of not competing with other agents.
Transaction volume: If you’re buying or selling multiple properties, or if you’re both buying and selling through the same agent, you may be able to negotiate better terms. Agents appreciate consolidated business across multiple deals.
What You’re Actually Paying For
Real estate agents in Tel Aviv earn their fees through services that most buyers and sellers cannot easily replicate on their own.
For Buyers
Market access: Tel Aviv’s most desirable apartments often sell before they’re publicly listed. Agents with established networks access these off-market properties first—especially important in sought-after neighborhoods like Neve Tzedek, Old North, or Florentin.
Professional agencies with strong cooperation networks give you the widest access. At Ronkin Real Estate, we cooperate with 800+ agents across Tel Aviv through shituf pe’ula, giving our clients access to virtually every available property in the city—both public listings and exclusive off-market opportunities.
Expertise and negotiation: Agents know micro-market pricing, can identify when asking prices are inflated, and navigate Israeli real estate negotiations effectively. Cultural norms and local customs all factor into successful deals.
Transaction management: From tabu (land registry) searches to vaad bayit inquiries, arnona verification, and coordinating with lawyers and mortgage brokers—agents handle the administrative burden. For international buyers navigating Israeli bureaucracy from abroad, this coordination is invaluable.
Important: Commission is just one of several costs when buying property. Budget also for purchase tax (0-10% depending on various factors), legal fees (approximately 1-1.5% plus VAT), and potential renovation costs. The typical buying process takes 60-90 days from offer to closing.
Learn more in our guide to moving to Tel Aviv.
For Sellers
Professional marketing: Quality photography, compelling property descriptions in multiple languages, and marketing through both public platforms and private networks. Professional presentation significantly influences buyer decisions.
Pricing and buyer screening: Setting the optimal price requires balancing market data, property condition, and current demand. Agents also pre-qualify prospects and verify financial capability before viewings.
Negotiation and legal protection: Having an agent creates professional distance during negotiations, often leading to better outcomes. They also document everything properly, providing protection if disputes arise.
Tax coordination: Selling property in Israel may involve capital gains tax depending on factors like ownership duration, whether it’s your primary residence, and tax residency status. Agents coordinate with tax advisors to help you understand potential tax implications and exemption strategies.
How Agent Commissions Work in Practice
Payment Timing
Agents work entirely on commission—they receive zero payment until deals close. This structure creates strong alignment between agent and client interests.
For buyers: Commission is due on closing when ownership transfers.
For sellers: Commission is deducted from proceeds at closing, typically handled by your lawyer.
For rentals: Both tenant and landlord pay their agents when the lease is signed.
Commission Agreements
Before working with any agent, you’ll sign a written commission agreement. Israeli law requires these agreements to clearly specify the commission rate, services provided, and agreement duration.
Key elements:
Scope of work: Exactly what services will the agent provide?
Exclusivity: Will you work only with this agent, or can you work with multiple agents simultaneously?
Commission rate: The exact percentage or flat fee, plus VAT specifications.
Duration: How long does the agreement last, and what are the termination conditions?
Never sign without reading and understanding every clause. Professional agents welcome questions and provide transparent answers.
Navigating Commission Discussions
Have the commission conversation upfront, before you start working together seriously. Don’t wait until you’ve found a property or received an offer.
How to approach it professionally:
- Know market rates first: Understand that 2% + VAT is standard before any discussions
- Focus on your situation: “We’re also selling our current property—is there flexibility if we do both transactions with you?”
- Be fair: Agents invest significant time and expertise. Reasonable discussions respect their professional value
- Get it in writing: Ensure the commission agreement reflects your understanding
Red flags: Refusing written agreements, vague service descriptions, pressure tactics, or unwillingness to explain their value.
Commission for Different Transaction Types
Buying Property
For buyers exploring Tel Aviv apartments for sale, budget 2% + VAT as your baseline. Your agent’s commission covers all viewings and work, regardless of how many properties you see before buying.
Investors purchasing multiple properties through Tel Aviv real estate investment can often negotiate volume arrangements.
Selling Property
Commission is a marketing cost factored into your net proceeds. If your property doesn’t sell during the agreement period and you withdraw it, you typically owe nothing—commission is due only upon successful sale.
Rental Transactions
Long-term rentals (6+ months): Standard one month’s rent + VAT from both tenant and landlord.
Short-term rentals (under 6 months): Typically 10% of the total lease value + VAT from both sides.
Renewals: If you renew with the same landlord, you typically don’t pay additional commission.
Special Considerations for International Buyers
Commission is calculated and paid in Israeli Shekels. Exchange rate fluctuations between when you start working with an agent and closing can impact your cost in your home currency.
Working with a Tel Aviv real estate agent who specializes in international clients often justifies standard market rates—these agents provide language support, explain Israeli processes, coordinate across time zones, and handle complications from your physical distance. The value of avoiding a single significant mistake typically exceeds any commission savings. For other costs involved, see our Israel property tax guide.
How to Choose the Right Agent
Key Qualifications
Valid licensing: Verify through the Ministry of Justice database—unlicensed agents operate illegally.
Neighborhood expertise: Match the agent’s specialty to your target areas.
Language capabilities: Ensure fluency in your language if Hebrew isn’t your primary language.
Track record: Ask about recent transactions and request client references.
Questions to Ask
- “How many transactions did you close last year in [specific neighborhood]?”
- “What specific services do you provide?”
- “Can you provide recent client references?”
- “What’s your communication style and availability?”
Red Flags
Reluctance to provide references, no verifiable track record, immediate pressure for exclusive agreements, unclear commission structure, or poor communication.
Real Estate Agency Fees in Tel Aviv FAQ’s
Standard commission is 2% + VAT (18%) for both buyers and sellers in property sales. For rentals, it’s 1 month’s rent + VAT for leases 6 months or longer, or 10% of total lease value + VAT for shorter leases. Both parties pay their own agents separately.
Shituf pe’ula means “cooperation” in Hebrew. It’s when two agents work together on a transaction—one representing the seller, one representing the buyer. Each agent is paid by their respective client. Sometimes agents also split commissions when serving a single client together. This cooperation system gives you access to more properties.
Yes. Unlike the US or UK where the seller typically pays both agents, in Israel each party pays their own agent’s commission. Buyers pay their agent 2% + VAT, and sellers pay their agent 2% + VAT
The 2% + VAT rate is standard market pricing. While commission structures can sometimes be discussed in specific circumstances—such as multiple property transactions, exclusivity agreements, or specific market conditions—the standard rate is what most transactions use.
For buyers: market access (including off-market properties), property searches, viewings, negotiation, due diligence coordination, and transaction management. For sellers: professional marketing and photography, pricing strategy, buyer screening, showings, negotiation, and legal coordination. The commission covers all work from start to closing, regardless of how many properties you view or how long it takes.
Commission is paid only when the deal closes successfully. For property sales, it’s due at closing when ownership transfers. For rentals, it’s paid when the lease is signed. Agents work for weeks or months before earning anything—they only get paid if the transaction completes.
The Bottom Line
Real estate agency fees in Tel Aviv represent a significant cost—on a typical apartment purchase, you’re looking at ₪70,000-100,000 including VAT. On a rental, roughly ₪10,000.
What you’re getting: expert representation, market access, negotiation leverage, administrative coordination, and professional protection throughout one of your largest financial transactions.
Working with Ronkin Real Estate: As Tel Aviv’s leading English-speaking agency, we provide transparent commission structures and full-service support for international buyers, sellers, and renters. Our network of 800+ cooperating agents, multilingual team, and 15+ years of experience ensure you get maximum value from your agent representation—whether you’re buying your first Tel Aviv apartment, selling a property, or navigating the rental market.
Making the most of it: Work with licensed, experienced professionals who specialize in your transaction type and neighborhood. Discuss commission upfront, set clear expectations, and let your agent navigate the complexities of Israeli real estate.
Understanding real estate agency fees in Tel Aviv means you can budget properly and get excellent representation while knowing exactly what you’re paying for.
Ready to work with an experienced Tel Aviv real estate agent who provides transparent service and understands the unique needs of international clients? Contact Ronkin Real Estate for expert guidance on buying, selling, or renting in Tel Aviv’s most sought-after neighborhoods.