Mas Rechisha is an acquisition tax, or purchase tax, that a buyer is obligated to pay upon purchasing real estate in Israel. Once a contract is signed, a self-assessment must be filed with the Israel tax authorities, and paid in full, within 60 days. Late payment may incur interest and penalties. Generally, the real estate attorney who handles the contract for the property purchase deals with the issue of Mas Rechisha.
Mas Rechisha on residential property is a graduated (incremental) tax. Besides the purchase price of the property, other factors that are considered include the status of the purchaser (i.e. resident/tourist/oleh chadash), and additional properties owned in Israel.