Real estate taxation · Implementation Instruction
Real Estate Taxation Implementation Instruction No. 2/2025: Guidance on Regulation 2(1A) of the Purchase Tax Regulations
Summary
The Instruction clarifies Regulation 2(1A) of the Purchase Tax Regulations, which allows a refund of one sixth of the purchase tax, so that the rate stands at only 5%, on the purchase of land subject to a plan permitting the construction of at least one residential apartment, if a building permit for a residential apartment was obtained within 24 months of the date of sale. The regulation also applies to land purchased as inventory and to land sold with a valid building permit, but not to the sale of a right in a real estate association nor to the purchase of apartments from a construction company; an apartment that the purchaser intends to demolish will be deemed land only if the Director is so persuaded, and an intention to demolish is not sufficient. An excavation and shoring permit will be deemed a building permit under the conditions set out in Position Paper 4/24, and for land with mixed designation the refund is proportionate to the part designated for residential use. The 24-month period cannot be extended under section 107 of the Law, and after the permit is obtained an application to amend the assessment must be filed under section 85 of the Law.
The summary was written by the office and reflects the instruction as of its publication date. The binding text is the official Hebrew publication, and the instruction may have been updated or affected by later legislation and case law. The English title and summary are an unofficial translation.
Publication details
- Type
- Implementation Instruction
- Number
- 2/2025
- Publication date
- 16.1.2025
- Topics
- Purchase tax, Reporting and procedures
- Sections of the Law mentioned
- 85
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 2/2025, "Real Estate Taxation Implementation Instruction No. 2/2025: Guidance on Regulation 2(1A) of the Purchase Tax Regulations" (16.1.2025) [Hebrew]
Calculators on this site
Back to the guidelines databaseSearch the full text of all publications
This information is provided for convenience only and is not legal or tax advice. Check the current official text and the circumstances of the transaction before making a decision. See the terms of use.