Israeli law includes spouses, parents, children, grandchildren, and spouses of those children or grandchildren as close family members for the purpose of real estate gifts. It also contains siblings if the property was initially received from a parent or grandparent by one of them (Siblings don’t get the exemption otherwise).

For more distant relatives, such as nephews, cousins, and uncles, the tax-free gift exemption does not apply. If you’re considering gifting to a non-qualifying relative or friend, it’s important to be aware that it wouldn’t be exempt; it would be taxed like a sale. This is not usually desirable.

When in doubt, contact our firm for professional advice to determine the validity of your relationship. You may need to provide proof, such as birth or marriage certificates, to the tax authority to confirm the family connection.

Read our complete guide on gifting property in Israel.

Our Firm Offers Complimentary Consultations

Please get in touch with us for further information at (888) 923-0022 (US/Canada) or 972-3-9055478 (Israel) or by using our online contact form. Our firm’s office hours are Sunday through Thursday, 8:00 AM to 8:00 PM, and Friday, 8:00 AM to 3:00 PM. Appointments are available upon request.