The Israel Real Estate Purchase Tax Law requires the purchaser of property, real estate in Israel to pay a Purchase Tax.
The Purchase Tax aka Mas Rechisha is based on the price of the property at the time the purchase is made. In some cases mostly when there’s multiple assets other parameters needs to be evaluated in order to minimize the Mas Rechisha or do conduct a tax planning.
There are different rates of Purchase Tax depending on the purchaser’s citizenship/residence situation at the time of the purchase. There are different rates for Israeli citizens, new immigrants (“Olim”) and foreign residents.
Purchase Tax Rates for Residents of Israel:
Up to NIS 1,623,320: 0%
From NIS 1,623,320 to NIS 1,925,460: 3.5%
From NIS 1,925,460 to NIS 4,967,445: 5%
From NIS 4,967,445 to NIS 16,558,150: 8%
Over NIS 16,558,150 : 10%
Purchase Tax Rates for New Immigrants (Olim) to Israel:
Up to NIS 1,759,310: 0.5%
Over NIS 1,759,310: 5%
Purchase Tax Rates for Foreign Residents:
Up to NIS 4,967,445: 8%
Over NIS 4,967,445: 10%
Note: These Purchase Tax rates for Foreign Residents also apply to those individuals who purchase apartments that are not “sole residences” as defined by Israeli Real Estate Tax law.
We are located in Tel Aviv with offices in New York and Los Angeles, California. We invite you to schedule a complimentary consultation with our real estate attorney in Tel Aviv today to learn how we can solve your Israeli legal and business matters.
Tags:
Israeli Purchase Tax Rates
Mas Rechisha calculator and simulation.
Purchase Tax Rates for Residents of Israel
Purchase Tax Rates for New Immigrants to Israel
Purchase Tax Rates for new Olim to Israel
Israeli Purchase Tax Rates for Foreign Residents
Assess Israeli betterment levy
Israeli Tax Laws
" I found Mr. Rahav Aharoni from my Hebrew translator and I was very happy with him. I hired him twice, the first time was to negotiate and complete a probate with my family and to register the land in Israel, which he did a great job on. And the second time, my family in Israel could not find/get my grandfather’s death certificate and I’ve hired him to do so. Mr. Aharoni did. It did take some time for him to find it, and he had promised to do so, and he did. Mr. Aharoni. is very kind, loyal and easy to work it and solved two of my issues. I will recommend Mr. Aharoni. I’ll be happy to respond to any inquiries. "
- Isaac Melamed