Investors or wealthy individuals or "OLIM HADASHIM" who live overseas and are classified as foreign residents want to purchase real estate in Israel, especially residential or investment property. The type of property and the investment objective have a significant impact on the tax result. Our clientele includes a diverse variety of real estate investors, including real estate holding companies and private landowners. KLF's knowledge and experience enable us to assist our clients in achieving the best potential tax outcome.
The Purchase Tax also referred to as the Acquisition Tax, is a one-time tax paymentmade by the buyer when he or she purchases land or real estate. When there is achange in ownership, the purchase tax is triggered. It is critical to realizethat purchase tax rates are lower for first-time purchasers, Olim Chadashim,and other eligible individuals. however, the purchase tax rates on a secondhome are higher.
The amount you pay is determined by the following factors: Property type (commercial or residential), The property's worth, The buyer's circumstance(first-time buyer, Oleh Chadash, Company, etc.)
Proceeds from the sale of Israeli real estate are subject to property gains tax. Property gains tax also applies to the sale of shares in an unlisted realestate company defined as a corporation or partnership whose principal assetsare Israeli real estate. However, the tax burden on the sale of such a companywill be assessed in accordance with the capital gains tax rules of the Israeli Tax ordinance.