Estimating Property Tax in Israel
Determining and estimating property tax in Israel is a fairly complex matter. It’s determined by many different things, including:
Variable tax rates affected by the date of purchase
Specific deductions
Historical tax rates on assets purchased before March 31st, 1961
A “standard” linear tax calculation that includes division into three time periods
Therefore, it’s highly recommended to consult with somebody with expertise instead of attempting to calculate property tax on your own.
Property Tax Exemptions
Under certain conditions stipulated by the law, it’s possible to be granted an exemption from paying property tax. The list of potential exemptions is long and, at times, it may be preferable to use one and not another.
Further, it’s possible that, even if you don’t request a specific tax exemption, you still won’t have to pay property tax. This can be achieved by reducing certain expenses incurred on the property like financing expenses, brokerage, legal fees, and depreciation.
For the best chance of receiving property tax exemption, consulting with a lawyer is likely necessary.
When Do You Need a Lawyer?
Purchasing a Residence
If you want to purchase a residential dwelling in Israel as a foreign citizen, you can potentially receive a significant discount on your property tax. Though typically property tax in Israel would be very high at around 8%, our law offices can help you receive a tax break that will make your total tax payment quite low. We’re also able to help you in the particular tax case that occurs when you don’t have any property internationally other than the one that you plan to buy in Israel.
Selling Your Residence
If you have a residential dwelling in Israel, either that you inherited or obtained in some other way, and you want to sell it, you’ll typically have to pay a form of property tax in Israel. Our lawyers can help you decrease this tax significantly or even avoid it entirely.
Selling Land
If you’re a foreign citizen who wants to sell land in Israel, our law team can help you do so and significantly reduce the property tax you’ll be assessed. In particular, we can especially help with the sale of historical land from the 50s, 60s, and 70s.
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