No Gift Tax
Israel does not impose a gift tax. Transfers of cash, securities, and other assets between any parties are not subject to gift tax. However, transferring non-cash assets (real estate, shares) may create a capital gains tax event if the recipient is not a close relative. Cash gifts are always completely tax-free regardless of the relationship between the parties.
Real Estate Gifts
Gifting real estate to a close relative is exempt from betterment tax. The recipient pays purchase tax at 1/3 of the normal rate. Between spouses, the transfer is fully exempt from both taxes. Gifts to non-relatives may be treated as a sale at market value, triggering full betterment tax.
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.