Thousands of deals closed before the Purchase Tax for investors was raised — Mabat Ha’Shuk November 2021

After an announcement, made at the beginning of the month, that the Purchase Tax on a second residential apartment would increase to 8%, investors and foreign buyers rushed to close deals before the law came into effect on November 28.

According to the proposal made by Finance Minister Avigdor Lieberman, Interior Minister Ayelet Shaked, and Housing Minister Ze’ev Elkin, the Purchase Tax (Mas Rechisha) applied to a second residential apartment is now 8% on the first shekel up to NIS 5.35 million, and 10% on any part of the price that is above NIS 5.35 million. The announcement of the tax change attracted a large influx of investors and foreign buyers* eager to sign agreements in November before the legislation passed. (*Foreign residents are considered to be investors even when purchasing a first apartment in Israel).

The following is a selection of real estate deals that took place in November 2021 that involved English-speaking real estate agents in Israel. The idea is to give our readers a general idea of the residential real estate market, property prices, and activities taking place around the country that relate to Israel real estate*.

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Project in Ir Yamim

Jerusalem:

A 4-room apartment, 96 sqm, located on the first floor out of two floors on Te’ena Street in Gilo was sold for 1,890,000 NIS (Re/Max Vision).

Purchase Tax for investors

Tel Aviv:

A 3-room apartment, 82 sqm with a 40 sqm garden, located on Ma’apilei Egoz in the Neve Chen neighborhood, was sold for 2,325,000 NIS (Re/Max Ocean). A 2-room apartment on Herzl Rosenblum, 58 sqm was sold for 2,450,000 NIS (Daon Group).

Purchase Tax for investors
Apartment sold on Herzl Rosenblum Street

Ashdod:

A 4-room apartment, 136 sqm, on the third floor out of four floors, located on Hazionut Street in the City District, was sold for 2,250,000 NIS. (Re/Max Together).

Purchase Tax for investors

Netanya:

A 4-room apartment, 120 sqm with a 24 sqm balcony, located on the third floor out of 27 floors on Natan Yonatan in Ir Yamim, was sold for 4,250,000 NIS (Home in Israel).

Haifa:

A 3-room apartment, 70 sqm, in a building zoned for pinui binui located on the fourth floor on Etzel, in the Tirat HaCarmel neighborhood, was sold for 920,000 NIS. (Duet Nadlan).

Ariel:

A 4-room apartment, 110 sqm with a 10 sqm balcony, located on Ramat haGolan Street, was sold for 1,600,000 NIS. (Nadlan Ariel).

Purchase Tax for investors

The offices/agents mentioned represented either the buyers, the sellers, or both parties.

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The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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