Airbnb in an Israeli Condominium: Can the Bylaws Ban Short-Term Rentals?

Renting out your apartment to travelers on Airbnb or Booking looks simple on paper. In Israel, though, the first question is not about tax: it is whether your building’s bylaws allow it. Israeli courts have reached different outcomes on this, and the answer almost always depends on the exact wording of your condominium bylaws.

I. The starting point: the condominium bylaws (Takanon – תקנון)

Every condominium building is governed by a Takanon (תקנון), a set of bylaws which, once registered, binds all current and future owners. It often restricts apartments to megurim (מגורים), meaning residential use. The difficulty is that “residential” is not read the same way everywhere: does it mean only living there, or also hosting short-stay guests?

II. Decisions that point in different directions

Israeli courts read bylaws like contracts, looking at the drafters’ intent and the building’s context. Three decisions, which we reviewed in full text, show the split:

• Jerusalem District Court (June 17, 2024): in a residential building attached to a hotel, the court held that a “residential use only” clause barred daily or weekly rentals, while leaving longer-term rentals of several months or more open.
• Supreme Court (April 11, 2024): in a related case from Netanya, it denied leave to appeal, stressing that the meaning of a word in one set of bylaws does not automatically apply to another. It also noted that the Jerusalem ruling turned on different facts, including evidence that the developer intended to allow such rentals.
• Haifa Land Registry Supervisor (May 25, 2026): by contrast, for the building before it, the supervisor held that “residential” included short-term rentals through platforms such as Airbnb and Booking, and dismissed the neighbors’ claim.

The practical lesson: these rulings are not general rules. They show that there is no safe answer without reading your bylaws, their history and, at times, what the developer told buyers.

III. Who decides, and how?

Disputes between owners over the use of apartments go to the Land Registry Supervisor (Mefakeah al Rishum Mekarke’in – המפקח על רישום מקרקעין), who sits with the authority of a magistrate judge. Decisions can then be appealed to the district court. A bothered neighbor can therefore act against an owner who rents short term, and an owner can challenge a ban the building tries to impose.

IV. Other layers: planning and tax

The bylaws are only one layer. Planning law also matters: some decisions have asked whether short-term tourist letting is still residential use, and the Supreme Court noted in the Netanya case that public rules on apartment use sit on a separate plane from the bylaws.

On tax, do not assume that the favorable regimes for residential rental apply. The Income Tax (Exemption on Residential Rental Income) Law of 1990, for example, conditions its exemption on a document signed by the tenant confirming that the apartment is used solely as a residence. For rentals to travelers, the tax treatment should be analyzed case by case with professional advice.

V. Checks before you buy or rent out

• Obtain the registered Takanon from the Land Registry (Tabu) and read the apartment-use clause.
• Check whether the bylaws are standard or agreed ones, and whether a developer running a hotel or tourist services drafted them.
• Ask for marketing material and owners’ meeting resolutions, without overestimating them: a resolution adopted before the bylaws were registered may carry no weight.
• Ask the municipality about local rules on tourist accommodation.
• Have the tax treatment confirmed before the first guest arrives.

Conclusion – Why work with an Israeli real estate lawyer?

With bylaws that can cut either way, conflicting decisions and a tax treatment you cannot guess, short-term letting in a condominium is an area where a quick reading can be costly. An Israeli lawyer reads the registered bylaws, assesses the risk of a dispute with the building and secures the purchase before you sign. This article is general information and does not replace advice tailored to your building.

This is why ABITBOL & ASSOCIES, with its expertise in Israeli real estate law, supports foreign buyers and owners at every stage of their acquisition and of the management of their property. Our lawyers make sure your interests are protected and that every step is carried out securely.