Real estate taxation
Purchase tax on a second apartment: how much, and when it is taxed as a single apartment
A buyer of an additional residential apartment pays far more purchase tax than a buyer of a single apartment. Here are the 2026 rates, what may change in 2027, and when a second apartment still counts as a single one.
What is the purchase tax rate on a second apartment in 2026?
Under section 9(c1f) of the Real Estate Taxation Law, the purchase of a residential apartment that is not a single apartment is taxed at 8% on the part of the value up to NIS 6,055,070, and 10% on the part above it. Unlike a single apartment, there is no exempt bracket: tax starts from the first shekel.
| Value of the apartment | Tax rate |
|---|---|
| Up to NIS 6,055,070 | 8% |
| Above NIS 6,055,070 | 10% |
The amounts are frozen and are not indexed in the tax years 2025 to 2027 (section 9(c2)).
What happens after 31 December 2026?
The temporary provision was extended until 31 December 2026. The Law allows the Minister of Finance to extend it by order, with the approval of the Knesset Finance Committee, for a further two years (section 9(c1f)(2)).
If it is not extended, the permanent brackets in section 9(c1c)(1) return: 5% up to NIS 1,465,800, 6% up to NIS 4,397,380, 7% up to NIS 6,055,070, 8% up to NIS 20,183,565, and 10% above that. Anyone planning to buy an additional apartment near the end of the year should check what has been decided before signing.
A worked example
An additional apartment worth NIS 2,500,000:
- As an additional apartment: 8% of the whole amount = NIS 200,000.
- Had it been a single apartment: 0% up to NIS 1,978,745, 3.5% on the part up to NIS 2,347,040, and 5% on the balance. About NIS 20,538 in total.
The difference, about NIS 179,000, is why the status of the apartment is worth checking before signing, not after. To calculate with your own figures: purchase tax calculator.
When does a second apartment count as a single apartment?
- Replacement apartment. A buyer who sells the previous single apartment within 24 months of buying the new one. When buying from a developer, within 12 months of the date on which the new apartment was due to be delivered under the contract, and if delivery was delayed for reasons beyond the buyer's control, 12 months from actual delivery (section 9(c1c)(2)(b)).
- A share of up to one third in another apartment. A buyer who owns up to one third of another residential apartment, or up to one half if the share was inherited, is treated as owning a single apartment (section 9(c1c)(4)(a) of the Law, which refers to section 49c(3)). A larger share makes the new apartment an additional apartment. For example, a buyer who inherited 40% of an apartment is still buying a single apartment, while a buyer who bought 40% of another apartment is buying an additional one. An apartment let under protected tenancy before 1997 is also not counted.
- The family unit. The buyer, the spouse (unless permanently living apart) and their children under 18 are treated as one buyer. An apartment owned by the spouse counts.
- Residency. The single-apartment track is for Israeli residents. For foreign residents: purchase tax for foreign residents.
How is the tax paid when the previous apartment has not yet been sold?
In the purchase report, the buyer declares an intention to sell the previous apartment. A buyer who does not sell in time pays the difference between the tracks, with linkage differentials and interest. The transaction is reported within 30 days of the transaction date.
When the previous apartment is sold, it is worth checking the capital gains tax on the sale as well: capital gains tax planning when selling an apartment.
Related articles and pages: Purchase tax 2026: brackets and reliefs | Purchase tax calculator | Purchase tax on a plot | Selling an apartment
Sources
- Real Estate Taxation (Capital Gain and Purchase) Law, 5723-1963: section 9, including subsections (c1c) (single-apartment brackets and permanent brackets), (c1f) (temporary provision for an additional apartment and its extension) and (c2) (amounts frozen in 2025 to 2027). Hebrew text on Wikisource.
- Israel Tax Authority, Real Estate Taxation Instruction 1/2026 (updated amounts).
Checked on 11 November 2026.
Questions and answers
I inherited a share of an apartment. Is the apartment I am buying a second apartment?
It depends on the size of the share. An inherited share of up to one half of the apartment does not cancel single-apartment status. For a share that was not inherited, the limit is one third (section 9(c1c)(4)(a) of the Law). The exact share should be checked in the land registry extract.
I own an apartment abroad. Does it matter?
For purchase tax, apartments in Israel and in the Area (Judea and Samaria) are counted. An apartment abroad does not count for this definition.
I bought an additional apartment in the name of my adult child. Is it his single apartment?
A child aged 18 or over is assessed separately. But the transaction must be genuine and the consideration must be the child's, otherwise the Tax Authority may treat it as a purchase by the parents.
Not sure the deal is safe? Let's start with a conversation
In an initial conversation we will go over the property, the other party and the payment schedule, and tell you what needs to be checked before you sign.