Israeli housing purchase tax exemption threshold rises

The purchase tax exemption threshold applicable from January 16, 2022 to January 15, 2023 has been raised to NIS 1,805,545 from NIS 1,747,865.

 ‘EVERYONE HAS a right to own a piece of “the rock.”’ (Pictured: Real estate office on Emek Refaim St.) (photo credit: MARC ISRAEL SELLEM)
‘EVERYONE HAS a right to own a piece of “the rock.”’ (Pictured: Real estate office on Emek Refaim St.)
(photo credit: MARC ISRAEL SELLEM)

After publication of the Consumer Price Index (CPI) for 2021, the Israel Tax Authority has revised the purchase tax exemption threshold upwards for homebuyers with one property.

The purchase tax exemption threshold applicable from January 16, 2022 to January 15, 2023 has been raised to NIS 1,805,545 from NIS 1,747,865.

A general view shows part of Tel Aviv amid an ease of restrictions following the coronavirus disease (COVID-19) in Israel, May 7, 2020. (credit: REUTERS/AMIR COHEN)A general view shows part of Tel Aviv amid an ease of restrictions following the coronavirus disease (COVID-19) in Israel, May 7, 2020. (credit: REUTERS/AMIR COHEN)

Between NIS 1,805, 545 and NIS 2,141,605, 3.5% purchase tax must be paid. Between NIS 2,141, 605 and NIS 5,525,070, 5% purchase tax must be paid, rising to 8% between NIS 5,525, 070 and NIS 18,416,900, and 10% above that amount.

For real estate investors, homebuyers purchasing a second home or other additional homes, purchase tax will be 8% up to NIS 5,525,070, and 10% above that amount.