Purchase tax in Israel - Make your own online simulation
This simulator allows you to calculate the amount of acquisition tax you will have to pay when buying a property in Israel. Last simulator update : 27/12/2021In accordance with Section 9 (a) of the Real Estate (Capital Gains and Acquisition) Tax Law, every purchaser of a right in real estate is liable for acquisition tax in Israel. In other words, acquisition tax is a tax paid by the buyer to the State on completion of the transaction. In Israel, the acquisition tax is calculated according to the value of the transaction, and its rates are updated once a year by the tax authorities.
Commercial premises in Israel: on what amount do we pay acquisition tax? Excluding VAT or including VAT?When purchasing a commercial property, the amount of acquisition tax is calculated in 2 ways:
- If you recover VAT at the time of purchase (company Hevra Baam, Osek Murshe), in which case the acquisition tax is calculated on the amount of the transaction excluding tax.
- If you do not recover VAT at the time of purchase (private individual, company with no VAT-registered file - Maam), in this case the acquisition tax is calculated on the amount of the transaction including VAT.