Real estate transactions in Israel involve several tax obligations: capital gains tax, purchase tax, and the betterment levy. The applicable rules depend on the property type, family status, and eligibility for exemptions. Articles below provide professional legal overviews for buyers and sellers in Netanya and the Sharon district.
Frequently Asked Questions
What is capital gains tax on real estate in Israel?
Capital gains tax (mas shevach) applies to profits from the sale of real property in Israel. Specific exemptions exist under law, including exemptions for qualifying residential apartments subject to a four-year waiting period. Each transaction must be assessed on its specific circumstances.
What is the difference between purchase tax and the betterment levy?
Purchase tax is paid by the buyer at acquisition; the rate depends on the buyer's status and purchase purpose. The betterment levy is charged to the landowner when a planning change increases land value. These are distinct obligations with different triggers and calculation methods.
How does the 18-month rule affect capital gains exemptions?
The 18-month rule allows sellers acquiring a replacement apartment to sell their previous apartment within 18 months while retaining certain exemptions. Strict conditions apply and must be verified with legal counsel before relying on this rule.
