Cash Gifts
Cash gifts between any parties in Israel are completely tax-free – there is no gift tax. There is no limit on the amount. This makes cash gifts one of the simplest estate planning tools available. Parents can gift any amount of cash to children (or anyone else) without any tax consequence for either party.
Asset Gifts
Gifts of assets (real estate, securities, business interests) to close relatives are exempt from capital gains tax. The recipient inherits the giver's cost basis. For real estate gifts to relatives, purchase tax is charged at one-third of the normal rate. Gifts between spouses are fully exempt from both betterment tax and purchase tax.
Strategic Considerations
- Gift assets that you expect to appreciate further – the deferred gain grows in the recipient's hands
- Use the single-apartment exemption before gifting (sell exempt, then gift cash)
- Consider the recipient's tax profile – gifting assets to a lower-income child may result in lower tax upon eventual sale
- Time gifts carefully – large gifts near death may be scrutinized for substance
- Document all gifts properly with written gift deeds
בסיס חוקי
- Section 97(a)(5) – Gift to relative exemption
- Section 4A – Real Estate Taxation Law (Gift exemption)
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.