Did you know? Most of the land in Israel, 92 percents to be precise, is owned by the State of Israel (about 21 million dunams). And so, the country owns most of the soils which houses are built on. It is possible that Israel holds global record with that issue. It is possible that the state of Israel is the owner of more territory (in percents!) that the territory of the country, even more then the Union of Soviet Socialist Republics in the communism days.

"Buying" or "Leasing"?

In our daily live we use the expression "we bought a soil", while in many cases we should have said, "We leased a soil". When was the last time you have heard someone saying ‘I leased a soil for a self building'? Or, where did you hear somebody tells about ‘Rights he bought for a soil which he leased'? Instead, we hear- "We bought a house!"

What is the difference between "Buying" and "Leasing"?

Is there a difference between "administration soil" and "private soil"? Yes there is. Indeed in our daily life we are not so much affected by this difference, but in major datum-points there is a big difference. What are the main differences?  First, in the "buying" (or maybe - buying the rights). There has to be an approval of ‘Israel land administration' of the right transits in between the "seller" and the "buyer". Why? Also because administration is also the manager of the historical assets of the ‘National Jewish Found' ("Keren Kayemet Le-Israel") which partly was bought by Jewish at the 100 years previous to the establishment of Israel, with a clear turns to keep it in the hands of Jewish. ‘Israel land administration' is asking two main questions when passing the rights: Is the buyer is a citizen of Israel? And if not so, is the buyer is entitled for an Israeli citizenship by the law of return (SHVUT). The answers to those questions will determine "how automatic" would be the rights passing to the new "buyer" by the administration.

Another difference is when applying for building permission. Approval of the administration is necessary when applying for building permission.  Indeed, in the last few years an easier commentary and many kinds of applications don't need the approval. But in practice, the planning and building committees continues to ask for the approval of the administration. If you are living on an administration soil in the area of Zichron Yaakov, Binyamina and the surrounds, try to get a building permission from the local committee of planning and building Shomron, for example, without the approval of ‘Israel land administration'... 

The connection between the "rights buyer" (you) and the administration is by means of leasing. In other words, the country remains the owner of the soil, and you buy the rights to enjoy the asset for period of the leasing. You are allowed (with the approval of the administration) to build a house on the soil and you are allowed to enjoy it. What is leasing? Leasing is renting for a long period of time. How long a leasing from the administration is? Very long! Usually an administration soil for living is being leases for 49 years, with the option of extra 49 ahead. What happens in the end of leasing period? Can the administration who is the owner' to take back the soil which your house id built on? You can remain come, the actual answer is no, but it is more complicated issue which would be discussed more widely in another time.

Another important difference is the leasing money. If the administration is leasing you the soil, rather than selling it to you, so just like any other owner, it charges you for leasing money. Those leasing money can be paid every year, or in advance in a financial procedure called "capitalization". What is "capitalization"? "Capitalization" is paying the renting money in advance. On a calculation of paying renting money in advance you receive a discount, an exemption for annual leasing payment, and only in one payment you buy the rights of the soil for the leasing period.

"Capitalization campaign" in the ‘Israel land administration'   

Many among us are paying the leasing payment every year. Right now, ‘Israel land administration' is about to start a campaign that will allow you  to pay now, in advance and with a big discount the leasing payment that remained for you to pay.