Real estate taxation · Position Paper
Real Estate Taxation Position Paper No. 03/2026, Israel Tax Authority. Re: Sale of an apartment received by inheritance under section 49B(5) of the Real Estate Taxation Law, in respect of which an agreement was signed in an urban renewal transaction
Summary
Position Paper 03/2026 clarifies the exemption from betterment tax under section 49B(5) of the Law on the sale of an apartment received by inheritance that is part of an urban renewal transaction (evacuation and reconstruction and TAMA 38). Where the inheritance preceded the date of sale to the developer, the heir may use the exemption on the sale of the replacement apartment, subject to its conditions; where the inheritance occurred after the date of sale and before completion of construction of the replacement apartment, eligibility depends on the application of Amendment 96 (date of sale after 18.11.2021), and an inheritance before the date of application will not qualify for the exemption. The position is limited to urban renewal transactions in which one apartment is received under a full exemption under Chapter Five 4 and Chapter Five 5.
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
- 3/2026
- Publication date
- 22.3.2026
- Topics
- Inheritance and gifts, Urban renewal, Residential apartment exemption
- Sections of the Law mentioned
- 49ב 49כז 49
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Position Paper 3/2026, "Real Estate Taxation Position Paper No. 03/2026, Israel Tax Authority. Re: Sale of an apartment received by inheritance under section 49B(5) of the Real Estate Taxation Law, in respect of which an agreement was signed in an urban renewal transaction" (22.3.2026) [Hebrew]
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