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Buying property in Israel is an exciting step, but it also involves navigating the country’s tax laws. One of the most significant taxes for new property owners is the Israeli purchase tax. This tax applies to all real estate transactions and understanding it is crucial for making informed purchase decisions. We are proud to present our Israeli purchase tax calculator in English to simplify your calculations.
What is Israeli Purchase Tax?
The Israeli purchase tax (מס רכישה) is a one-time tax levied on all real estate purchases in Israel. This tax is paid to the government upon completion of the property transaction. The amount of purchase tax you pay depends on various factors, including:
- Property Type: Different tax rates apply to residential and non-residential properties. Residential properties are further categorized into primary residences and additional properties, with varying tax rates.
- Property Value: The purchase tax is calculated based on the property’s market value at the time of purchase. This value includes VAT if buying a new property from a developer.
- Buyer Status: Certain demographics, such as first-time homebuyers and people with disabilities, may be eligible for tax reductions or exemptions
A little more about tax in Israel
The Israeli tax law is complex and is full of allowances, deductions and tax credit opportunities. As a tax payer, it’s your responsibility to ensure that you don’t pay more tax than you are legally required to.
Israeli tax on rental income
