Purchase tax in Israel - Online simulation

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 : 27/12/2021

In 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:

1. 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.
2. 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.

If you would like assistance in reclaiming VAT on your acquisition of a commercial property in Israel (Office, store, land ...), do not hesitate to contact us.

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Purchase tax in Israel: Different tax rates depending on the case.

There are different tax rates for : - Residential apartment defined as sole residence (including acquisition of improvements). This rate applies to anyone with a single apartment in Israel. - Additional apartments beyond the apartment defined as the sole residence. This rate applies to anyone who already has an apartment in Israel or anywhere else in the world, registered in his or her name. - Duties on non-residential real estate (commercial premises, stores, agricultural land, etc.) Property tax regulations (acquisition tax in Israel) provide for exemptions and reductions in the payment of acquisition tax. For more information on the populations eligible for relief, consult the online Israel acquisition tax simulator.

Did you know? Part of the apartment = reduced tax.

When purchasing part of an apartment, the tax will be calculated based on the value of the apartment as a whole, and the result of the calculation will be multiplied by the part purchased. Also read: How do I declare my rental income in Israel?