Purchase tax on an apartment: 3 things to know
Purchase tax in a 30-second video
Video transcript
Hi, I'm Chotmi! And this is Cheshbi! And we have 3 things to tell you about purchase tax. For a sole apartment there is an exemption up to the first bracket, and above it the tax rises in brackets: 3.5%, 5%, 8% and 10%. For an additional apartment you pay 8% from the very first shekel, and 10% on the part above the top bracket. The brackets are determined by the date of the transaction, and when buying from a developer, the value includes VAT. How much tax will you pay? Use the calculator at dira-law.co.il.
In brief
For a sole apartment there is an exemption up to the first bracket, and above it the tax rises in brackets of 3.5%, 5%, 8% and 10%. For an additional apartment you pay 8% from the very first shekel, and 10% on the part above the top bracket. The brackets are determined by the date of the transaction, and when buying from a developer the value includes VAT.
For the full explanation: Purchase tax calculator. Enter the value of the property, the date of the transaction and the type of buyer, and the calculator works out the purchase tax under the official Israel Tax Authority brackets in force on that date, with a breakdown by bracket.
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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.