Real estate taxation · Implementation Instruction
Real Estate Taxation Implementation Instruction 5/2013: The Reform in the Taxation of Residential Apartments
Summary
As at the date of its publication (December 2013), the instruction sets out the reform in the taxation of the sale of qualifying residential apartments established in the amendment to the Real Estate Taxation Law within the Law for Changing National Priorities, including the transitional provisions. The main points of the reform: the exemption from betterment tax is retained for a person selling their single apartment, the exemption granted to owners of several apartments once every four years was abolished, a foreign resident is entitled to the exemption only if they present confirmation from the tax authorities in their country of residence that they have no apartment there, and an exemption ceiling was set for luxury apartments above which the value is liable to tax. On a taxable sale of an apartment purchased before the transition date, the real gain is calculated on a linear basis, so that the portion attributed to the period up to the transition date is exempt and the portion after it is liable to tax. The instruction also details the new conditions for the single apartment exemption, the cooling-off periods for an apartment received as a gift, the exemption for those upgrading their housing and the new declaration forms.
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
- 5/2013
- Publication date
- 16.12.2013
- Topics
- Betterment tax, Residential apartment exemption, Single and replacement apartment
- Sections of the Law mentioned
- 26ב 26ג 26ה 20א 26י 44ב 26ז 71 26 44ג 44ד 26א
Related publications
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction 5/2013, "Real Estate Taxation Implementation Instruction 5/2013: The Reform in the Taxation of Residential Apartments" (16.12.2013) [Hebrew]
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