Real estate taxation · Implementation Instruction
Holiday Apartments: Real Estate Taxation Aspects - 05/2010
Summary
The instruction provides that a holiday apartment which, under the plan, the building permit or the purchase agreement, must be available to the public for holiday purposes for most of the year is not a "residential apartment" under the Law, relying, among other things, on the Supreme Court judgment in the Herzliya Marina matter. Accordingly, its sale is not eligible for the exemptions under Chapter Five 1, its purchase is subject to purchase tax at a rate of 5% and not according to the brackets for a residential apartment, and a person holding a residential apartment and a holiday apartment will not be regarded as holding more than one residential apartment. Exceptions: a seller of a holiday apartment who, upon its purchase, was charged purchase tax as for a residential apartment may request an exemption, but the purchaser from that seller will pay 5%; and apartments in older projects that the authorities classified as residential for municipal tax (arnona) purposes, as well as "marked apartments" in which the court approved residential use, will be deemed residential apartments.
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
- 5/2010
- Publication date
- 11.8.2010
- Topics
- Residential apartment exemption, Purchase tax
- Sections of the Law mentioned
- 49ב 1 9
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 5/2010, "Holiday Apartments: Real Estate Taxation Aspects - 05/2010" (11.8.2010) [Hebrew]
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