Real estate taxation · Position Paper
Real Estate Taxation Position Paper No. 02/2026, Israel Tax Authority, on: Application of Section 49G of the Real Estate Taxation Law to the Sale of a Right in a Replacement Residential Unit in Urban Renewal Transactions Following Amendment 96 to the Law
Summary
The Position Paper provides that in urban renewal transactions of the evacuation and reconstruction type or a reinforcement plan on the demolition track, the sale of the right to the replacement residential unit after the date of sale and before completion of construction of the apartment is not subject to section 49G of the Real Estate Taxation Law, because on the date of sale all the building rights are sold to the developer. Under Amendment 96 to the Law, which entered into force on 18/11/2021, the right to the replacement residential unit is deemed a "residential apartment" for the purposes of betterment tax and purchase tax even before completion of its construction, and therefore the seller may request an exemption under Chapter Five 1 of the Law or a beneficial linear calculation under section 48A(B2), subject to meeting the definition of a "qualifying residential apartment". In a sale after completion of construction, the application of section 49G will be examined according to the planning status at the time of sale.
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
- Position Paper
- Number
- 2/2026
- Publication date
- 14.4.2026
- Topics
- Urban renewal, Betterment tax, Residential apartment exemption
- Sections of the Law mentioned
- 49ז 49כ 49 48א
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Position Paper 2/2026, "Real Estate Taxation Position Paper No. 02/2026, Israel Tax Authority, on: Application of Section 49G of the Real Estate Taxation Law to the Sale of a Right in a Replacement Residential Unit in Urban Renewal Transactions Following Amendment 96 to the Law" (14.4.2026) [Hebrew]
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