Purchase Tax
Purchase Tax is dependant on the price of the property.
When you purchase a property in Israel, you are required to pay a purchase tax dependent on the price of the property and on your personal circumstances.
The tax is calculated on a tiered system, as set out below.
The rate is worked out on a cumulative basis, so using the numbers below, if the property is 3,500,000 NIS, you would pay nothing on the first 1,696,750, then 3.5% on the amount from 1,696,751 to 2,012,560 and then 5% on the portion from 2,012,561 NIS up to the 3,500,000. (Rather than paying 5% on the total amount.)
The rates in this article are from January 2019 (source).
You must seek advice from a qualified accountant or lawyer to understand your situation and how much you will be required to pay.
Purchase Tax Rates
For a sole residence:
On the first 1,696,750 NIS = 0%
From 1,696,751 NIS to 2,012,560 NIS = 3.5%.
From 2,012,561 NIS to 5,192,150 NIS = 5%.
From 5,192,151 NIS to 17,307,170 NIS = 8%.
Over 17,307,170 NIS = 10%.
Different rates apply for overseas buyers, new immigrants and owners of multiple properties.
You must seek advice from a qualified accountant or lawyer to understand your situation and how much you will be required to pay.
* This page is part of the CapitIL website guide to buying property in Jerusalem. You can jump around to any of the articles using the guide menu. The next page in the guide after this one, is Church Land.