New immigrants (subject to the terms of the regulations) enjoy reductions in purchase tax, whereby a new immigrant pays reduced purchase tax on the purchase of assets as shown below, if purchased by him or her within 7 years of entering the country :
- Residential apartment, or an apartment that serves as both a home and a business, to serve as the immigrant’s home or both residence and business.
- Business, including an agricultural property, to serve as the business in which the immigrant or his relation works.
- Vacant land that will serve for the erection of an apartment or business on an area that shall not be greater than the minimal area permitted for construction or 1,000 sq. meters, which ever is the greater, for the construction of an apartment or a business.
In the purchase of a plot for construction or setting up a business including an agricultural enterprise by the new immigrant, the value of the plot for taxation purposes for the new immigrant is about NIS 49,000).
Purchase tax scale for new immigrants:
- Up to NIS 1,187,840 – 0.5%.
- Over NIS 1,187,840 – 5%.
The above is offered as general information only and should not be considered legal advice and/or an alternative to a lawyer and/or the provision of an expert opinion. To obtain legal advice you should consult a lawyer specializing in real estate and property taxes.
Eyal GUR, Law Offices & Notary
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132 Derech Menahem Begin TEL-AVIV
Tel : 00972-3-6074666
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