Inheriting a Residential Apartment — What You Need to Know
A residential apartment is usually the largest asset in an estate. The process requires knowledge of the law, correct documentation, and sometimes an application to court.
Inheritance Order vs. Probate Order
When the deceased left no will, the heirs apply for an Inheritance Order — confirming who the legal heirs are and their shares.
When a will exists, they apply for a Probate Order, which confirms the will's validity and allows the estate to be administered accordingly.
Required Documents
- Death certificate of the deceased
- Identity documents of all heirs
- Property documents (current Land Registry extract)
- The will (if one exists)
- Declarations by the heirs
Capital Gains Tax Exemption
Inheriting a residential apartment is generally not subject to capital gains tax at the time of receipt. However, selling the apartment after inheritance may be taxable — this must be assessed case by case.
What is the difference between an inheritance order and a probate order in Israel?
An Inheritance Order is issued when someone dies without a will, confirming who the legal heirs are and their respective shares under the Inheritance Law. A Probate Order is issued when a valid will exists, confirming the will's validity and authorising the estate to be administered according to its terms. Both are issued by the Registrar of Inheritance Affairs.
Is capital gains tax owed when inheriting an apartment in Israel?
Inheriting a residential apartment in Israel is not subject to capital gains tax at the moment of inheritance. However, if the inherited apartment is later sold, capital gains tax may apply depending on circumstances such as the holding period and whether the heir owns additional properties. Professional tax advice is recommended before selling an inherited apartment.
