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The Land of Israel: Land of Our Heritage: Selling or Giving Away the Land:

Is it permitted to give or sell land in Eretz Yisroel to a non-Jew?

The verse "The land shall not be permanently sold" (Lev.25:23) is understood (in the Midrash Tanchuma) as meaning that it is forbidden to sell any part of the Land of Israel. The Talmud (Avodah Zarah 20a) interprets Deut.7:2 as meaning that one must not give land to non-Jews.
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