Real estate taxation · Implementation Instruction
Conditions of the Exemption in Section 49E of the Law Regarding an Apartment Built by Self-Construction: CA 501/03 Eldad Hasson v. Real Estate Taxation Director, Hadera, and Appeals Committee 5138/05 Eti Zeevi v. Betterment Tax Director 11/2007
Summary
As at the date of its publication (November 2007), the Instruction deals with the one-time exemption under section 49E of the Law for an individual Israeli resident who sells two apartments within one year and purchases an "other apartment", where the other apartment is land for self-construction, following the Hasson judgment in the Supreme Court and the Zeevi matter in the Appeals Committee. According to the Instruction, land for self-construction will be deemed an other apartment if it was purchased within 12 months before or after the sale of the second apartment, and an undertaking was given to build a residential apartment and complete it within 3 years of the date of purchase of the plot. Half a year before the date declared for completion of construction, its progress must be proved, and if construction is not expected to be completed on time the exemption will be cancelled, and the taxable assessment will bear linkage differentials and interest from the date of sale of the second apartment until payment.
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
- Publication date
- 25.11.2007
- Topics
- Residential apartment exemption, Single and replacement apartment
- Sections of the Law mentioned
- 49ה 49ב
Related publications
Official document
Source: The publication on the Israel Tax Authority website (gov.il, Hebrew)
Suggested citation
Israel Tax Authority, Implementation Instruction, "Conditions of the Exemption in Section 49E of the Law Regarding an Apartment Built by Self-Construction: CA 501/03 Eldad Hasson v. Real Estate Taxation Director, Hadera, and Appeals Committee 5138/05 Eti Zeevi v. Betterment Tax Director 11/2007" (25.11.2007) [Hebrew]
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