According to a Bizportal article from 22.4.2025, courts have ruled in several cases that short-term rentals constitute a change of use, even when quiet and not disturbing neighbors. Therefore, buyers planning to rent out an apartment in Eilat for vacation need to check four things before signing: property designation, condominium bylaws, arnona (municipal tax), and business license. This is a general checklist and not a legal opinion, and it does not replace a lawyer.
Is it Permitted to Rent an Apartment in Eilat for Vacation?
There isn't one answer for all apartments. The Bizportal article cites a ruling stating that short-term apartment rentals, even if controlled and quiet, are not legal without a permit for a change of use. It also cites a ruling from Jerusalem, according to which apartments designated as "residential only" cannot be used for rentals on booking platforms, even when the buyers are foreign residents. The article does not refer to Eilat on this point, so the decision for a property in Eilat is made based on the city's master plan (TABA), the permit, and a lawyer.
What to Check Before Buying?
Before buying, check the designation in the TABA and permit, the condominium bylaws, arnona, and business license. The table below summarizes each check and who can answer it. The designation, bylaws, and business license appear in the checklist from Bizportal on 22.4.2025, and arnona has been added here.
Table: Checks Before Buying a Property for Short-Term Rental
| Check | Why it's important | Who to check with |
|---|---|---|
| Property designation in TABA and permit | A property designated "residential only" may be restricted from vacation rentals | Lawyer, municipal engineering department |
| Condominium bylaws | Rental for profit requires compliance with the bylaws | Lawyer, review of registered bylaws |
| Arnona | The article notes that some landlords pay reduced arnona | Eilat Municipality |
| Business license | The article raises the question, without a general answer | Eilat Municipality, lawyer |
What Additional Checks and Costs are Involved in Vacation Rentals?
Beyond the four checks in the table, anyone renting an apartment in Eilat for vacation also checks taxes, ongoing management, and the property's own numbers.
- Tax. Rental income must be reported, and the reporting method depends on the data. Consult an accountant, and you can read more on the Israel Tax Authority website.
- Actual management. Vacation rentals include cleaning between guests, guest reception, and coordination. Check who handles this if the owner lives far away.
- Property's own numbers. Yield is calculated based on actual income and actual costs. See Rent in Eilat.
How to Find a Suitable Property?
On the Income-Generating Properties in Eilat page, you can leave your details, and a licensed Livo agent will contact you to help locate a property suitable for your needs. To understand what vacation rentals look like from the guests' perspective, you can browse active properties in Villas in Eilat.
For financing questions, see Mortgage for an Investment Apartment in Eilat.
The information on this page is general, based on a public publication noted alongside it, and is not investment, tax, or legal advice. Livo does not guarantee any yield. Before any transaction, it is recommended to consult with a lawyer and an accountant.
FAQ
Is it permitted to rent an apartment in Eilat for vacation?
There is no general answer here. According to a Bizportal article from 22.4.2025, courts have ruled in certain cases that short-term rentals constitute a change of use even when there is no nuisance to neighbors. The answer for a specific property depends on its designation, permit, and bylaws, so it should be checked with a lawyer before purchase.
What to check in the condominium bylaws?
Check if the bylaws permit or prohibit short-term rentals, and if the building is registered as a condominium. The article notes that rental for profit requires compliance with the TABA and bylaws.
Do I need a business license for vacation rentals?
The article lists this question in the checklist before purchase and does not provide a definitive answer. The answer depends on the scope of the rental and the requirements of the local authority, so inquire with the Eilat Municipality and a lawyer.
Is arnona for a vacation apartment different from residential arnona?
The article notes that some landlords pay reduced arnona. The classification of the property for arnona purposes is determined by the local authority, so check with the Eilat Municipality before purchase.
Is this article legal advice?
No. The information is general, based on one public publication noted within it, and is not investment, tax, or legal advice.
עודכן לאחרונה: 28 באוקטובר 2026