Every year, during the month of January, Israel Tax Authority publishes new thresholds for Mas Rechisha (Purchase Tax in Israel) according to the Central Bureau of Statistics Home Prices Index for the previous year. The Mas Rechisha or Purchase Tax 2021 thresholds are updated annually, in mid-January, with consideration for the Home Prices Index of...

When purchasing a second-hand home in Israel, it is customary for the purchaser’s attorney to conduct negotiations with the vendor’s attorney by discussion, exchange of correspondence, and drafts of the contract of sale which reflect each party’s concept of how the transaction should be structured. The following is a selection of some of the more critical issues that a purchaser’s attorney will address during the process of a second-hand transaction:

The municipal property tax in Israel, known as “Arnona,” is levied by the local authorities in order to finance their activities and services. It is calculated according to a variety of parameters, including the purpose of the building, its size, the socio-economic status of the neighborhood, and more. These variables can result in an enormous...

The Greek Orthodox Church owns hundreds of acres of valuable land in downtown Jerusalem, on which thousands of apartments are built. In the last few years, the Church has begun selling land owned by various Christian denominations to private companies. This is a cause for serious concern for both the residents and Israeli authorities. In...

The purchase tax (known as Mas Rechisha) imposed on property in Israel has been significantly reduced for second homeowners and non-residents buying in Israel, in order to encourage activity within the local real estate market during the Corona crisis. The decision by the Minister of Finance, Israel Katz, was approved by the Knesset on August...

With the difficulty of selling apartments during Corona-times, a seven-month extension has been granted to Israelis to sell their apartment before being considered “investors” — a definition that carries a tax of up to hundreds of thousands of shekels. Previously, buyers were permitted to own two apartments in Israel for only a year and a...

When someone purchases a new apartment or an apartment “off-plan”, a question that often arises is how does the purchaser guarantee the quality of construction after taking possession? The Sales Law, with the primary objective to protect buyers against negligent builders, makes the prospect of buying a new apartment in Israel, a more secure exercise....

Only one month after starting his new role as Minister of Housing and Construction, Yaakov Litzman is spearheading the cancellation of the Purchase Tax (Mas Rechisha ) on investment apartments in peripheral areas of Israel. The proposal was sent to the Minister of Finance, Israel Katz, about a week ago, recommending the tax continue to...

The Israeli Housing Ministry has recommended a 100-day  delay in delivering new apartments in Israel as a result of Coronavirus. This amounts to an additional 40 days to the delay period that the law currently permits. According to the Ministry, the average delay caused by the Corona crisis is estimated to range between 70 and...

The COVID-19 pandemic is still raging strong. Nobody knows with any certainty if we, in Israel, are in the beginning, the middle, or towards the end of this ordeal. These are treacherous unchartered waters and it is unclear what the effects on the financial markets will be in the long term. While we are all...