Real Estate
This category should begin with a fuller overview of Real Estate in Israel rather than a short label and a grid of links.
Purchase Tax
Purchase tax (מס רכישה) is paid by every property buyer in Israel. Here you'll find updated tax brackets for first and additional apartments, calculation examples, eligible discounts for first-time buyers and new immigrants, and information on payment deadlines and reporting requirements.
5 articlesBetterment Tax
Betterment tax (היטל השבחה) is a municipal levy paid when a property increases in value due to a change in the local planning scheme. Learn when the tax is triggered, how it is calculated (typically 50% of the value increase), available exemptions, and the difference between betterment tax and capital gains tax on real estate.
5 articlesCapital Gains Tax
When you sell real estate in Israel, you may owe capital gains tax (מס שבח). This section covers how to calculate your taxable gain, the historical exemption for residential apartments, current tax rates and the linear calculation method, deductible expenses, and the 30-day reporting deadline after a sale.
5 articlesRental Income
Rental income in Israel can be taxed under one of three tracks: full exemption (up to a monthly ceiling), a flat 10% rate with no deductions, or regular progressive tax rates with full expense deductions. Learn how each track works, which one suits your situation, and the reporting requirements for landlords.
5 articlesUrban Renewal
Israel's urban renewal programs — including TAMA 38 (seismic strengthening and additions) and Pinui-Binui (evacuate and rebuild) — offer significant tax benefits to apartment owners in eligible buildings. Learn about VAT exemptions, purchase tax reductions, capital gains tax deferrals, and the conditions for qualifying.
5 articlesConstruction
Building or renovating property in Israel involves multiple tax considerations — from VAT on construction services to input tax credits for contractors, development levies, and the tax treatment of construction costs. This section guides you through the tax aspects of new construction and major renovations.
5 articlesOwnership Structures
How you hold real estate in Israel — personally, through a company, via a trust, or in a partnership — significantly affects your tax obligations. Compare the tax implications of different ownership structures, including corporate tax rates vs. individual rates, dividend distribution taxes, and strategies for multi-property portfolios.
5 articlesArnona (Property Tax)
Arnona is the municipal property tax paid by all property occupants in Israel. Learn how Arnona rates are set by local authorities, the classification system for residential vs. commercial properties, available discounts (for seniors, disabled persons, low-income earners, and new immigrants), and how to file an objection if you believe you are overcharged.
5 articlesSpecial Situations
Real estate taxation gets complex in specific life situations — divorce, inheritance, gifting property to family members, joint ownership disputes, or selling a property that was partly used for business. This section addresses the tax rules and planning opportunities for these common real-life scenarios.
5 articlesRE Investment
Investing in Israeli real estate involves understanding property appreciation tax, rental income taxation, financing deductions, and portfolio strategies. This section covers the tax-efficient approaches to residential and commercial property investment, including leveraging, depreciation benefits, and multi-property planning.
5 articlesForeign Residents
Foreign residents buying or selling property in Israel face additional tax considerations — including higher purchase tax rates for non-residents, withholding requirements, limited access to certain exemptions, and potential double taxation issues. Israeli residents investing in foreign real estate will also find relevant guidance here.
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