There are four main components of real estate taxation in Israel. The tax is often paid by both buyers and sellers.
What should a real estate appraiser in Israel know about the taxes paid by the sellers? Anyone who sells real estate in Israel is usually exposed to three types of tax. The tax in principle is paid on the increase in the value of the real estate.
New building rights taxation
This tax is paid for additional building rights.
The building rights tax is paid on new building rights added to the real estate due to municipal building plans.
Only a real estate appraiser in Israel may assess the value of building rights and the tax payable.
In 2016, you purchased a private house built in a size of 180 square meters. Today, in 2021, you want to sell the house.
In 2018, a plan was approved which allowed the construction of an additional floor measuring 80 square meters.
When you will offer the house for sale, you will indicate in the advertisement that the house has 180 sqm built and 80 sqm of building rights for an additional floor.
The tax for the additional building rights is 50%.
A real estate appraiser in Israel who specializes in real estate taxation can save you hundreds of thousands of shekels in tax payments.
An expert and creative real estate appraiser in Israel can legally reduce or eliminate the tax you are required to pay.
Value elevation Tax
This tax is paid for the increase in the value of the real estate.
The tax is paid on the difference between the purchase price and the selling price of the real estate.
The tax varies between commercial real estate and residential real estate.
A real estate appraiser in Israel who specializes in real estate taxation can use tax rebates granted to you by the Real Estate Tax Law.
Taxation to the Israel Land Authority
Most of the real estate in Israel is owned by the state. The real estate owned by the state leases the real estate to residents for long periods.
The state leases the real estate to residents with a defined construction capacity.
If the lessee wishes to sell the real estate or purchase the real estate from the state, he will have to pay for the full building rights provided for the use of the real estate as stipulated in the municipal plan.
You can appeal the tax to the Israel land authority with the help of a real estate appraiser in Israel.
What should a real estate appraiser in Israel know about the taxes paid by buyers?
The real estate taxation law distinguishes between Israeli residents and residents from foreign countries.
A citizen of a foreign country who wants to buy real estate in Israel is required to pay purchase tax.
The tax paid by foreign resident is 8% of the value of the real estate up to a ceiling of approximately 5,000,000 NIS
Above this ceiling, foreign resident will pay a purchase tax of 10% of the value of the real estate will be paid.
In our office, Paz real estate, a qualified real estate appraisers with decades of experience proficient in a variety of real estate appraisal areas.
Our office has extensive knowledge of the areas of real estate taxation.
Our office specializes in valuing gas stations and hotels in all regions of the state.
Phone: *2698, +972-504-837-837
The information is general only and is not legal and may change. Before buying or selling real estate, consult a qualified person.