A fast-growing market for several years
For years, Israel has been regarded as a booming real estate market.
What's more, as we told you in this articlethe government decided to temporarily reduce the tax on purchases in Israel.
Many investors have flocked to the purchase of apartments in Israel, as the ever-increasing value and ever-increasing demand of the rental market has made this investment the preferred choice of investors in Israel.Click here to access our Israel sales tax simulator
Government steps in to curb price rises
This is why the government has decided to take measures to protect the residential market and curb price rises.
An increase in the acquisition tax will be voted on in the coming days
In a few days' time, the government will pass a law increasing the purchase tax for investors.
This will result in an increase in the acquisition tax in Israel for people who already have a property in their name in Israel, and wish to acquire a second property.
If this law comes into force, hundreds of potential buyers who are interested in purchasing apartments in Israel could see their bills rise dramatically as a result.
Israel's new acquisition tax brackets
As soon as the new law is passed, there will be only 2 purchase options left for investors (people who already have an apartment in Israel in their own name) Click here to access our Israel sales tax simulator
What does the future hold for the Israeli real estate market?
Does this mean that investors will lose confidence in the stability of the Israeli real estate market?
Could investors change their decision and opt for other investment solutions? crypto currenciesbonds).
In a nutshell:
The law should be passed in the next few days.
The acquisition tax rate in Israel for investors will be increased to 8% (or 10%, depending on the bracket).
Curbing the rise in real estate prices in Israel.
Your questions - Our advice
- Does the tax for an Olé Hadash apply?
- Does this law apply to gifts of apartments between relatives?
- Is this law retroactive?
- How many days do we have to pay the acquisition tax in Israel?
- Does a donated apartment count as an apartment in its own right?