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Pricing of Legal Services in Israel

Joshua Pex
Joshua Pex

The need to find the right Israeli lawyer can be overwhelming. With so many different private practices and firms, navigating the waters to obtain high-quality service and fair pricing of legal services in Israel is not an easy task.

Our law office specializes in the field of emigration and Israeli civil law. In this article, attorney Joshua Pex will explain the costs of legal services in Israel, so that you have the resources necessary to make an informed choice about the legal practitioner that suits your needs and your budget.

Differences in Pricing Across the Industry

Prices for legal services Israel will vary widely between firms and lawyers.  While attorneys are not actually legally bound by its provisions, the Israeli Bar Association has published a list of recommended prices for different legal services. The recommended pricing of legal services depends on the exact legal services, from a percentage of the sum the lawyer obtained for the client, to flat rates for specific situations. For example, the guideline sum given for Pricing of Legal Servicesarranging a divorce by consent is 1,098 NIS. Arranging a “basic” will is 1,844 NIS.  Mortgage registration is 0.5% of the mortgage sum, with an artificial minimum of at least 864 NIS.

It is important to reiterate that lawyers practicing in Israel are not bound by these recommendations. In fact, most Israeli demand prices that are substantially higher than those recommended by the Israeli Bar Association.

Pricing for Your Specific Legal Needs

Once you’ve found the lawyer or firm that is right for you, the price of the legal services rendered will depend on a variety of factors. These include; the complexity of the case, the length of time that the case will take, and the type of legal service being undertaken.

Fee structure will also vary. While some lawyers charge an hourly rate for their billable hours, some provide built-in incentives. For example, legal fees may include a percentage of the settlement won or be contingent on the successful execution of the legal action. This is particularly common in labour law suits. Lawyers engaged in litigation for a labour law case will normally ask for a percentage of the sum awarded. You can find more information about labour law on our website.

Similarly, a lawyer working on an Arnona case will ask for a percentage of the deduction in tax that they are able to provide the client. However, for the vast majority of legal services, payment is based on the time spent on the case. Normal hourly rate can range between $150-$400 USD.

Notable Exception

There are several situations where the Israeli Knesset has imposed an artificial roof on the fees that a lawyer may collect from a client. Most notably, lawyers receiving fees from clients that are collecting compensation received pursuant to the Assets of Holocaust Victims Law have to comply with the fee guidelines set out by the statute. Section 10(b) of the law prescribes that the cap of fees which can be collected for handling claims pursuant to the law is 15% of the amount paid to the claimant.

The same principle is applied to legal fees for lawyers representing clients in the case of personal injuries in car accident. If there were legal proceedings, the amount paid to the lawyer cannot exceed 13% of the amount awarded to the victim.

Conclusion

Before you consult with lawyers to obtain more information about fees, keep the Israeli Bar Association Guidelines in mind. While not determinative, they will help you get a “ballpark” minimum that you will need in order to solicit the services of a lawyer in Israel. Also at your disposal is a Hebrew website that gives you an estimate on how much specific legal services will cost.  If you would like more information on pricing legal services in Israel, please contact one of our lawyers, who will be happy to assist you.

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