The Definition of a Residential Apartment in Israeli Law: The Israeli Income Tax Ordinance (ITO) defines a "residential apartment" as a unit that is intended primarily for residential use. This definition is based on two elements:

• The objective element: The unit must be a "dwelling unit," meaning that it must have the necessary amenities for residential use, such as a kitchen, bathroom, and bedroom.
• The subjective element: The buyer must intend to use the unit for residential purposes.

The subjective element of the definition is often difficult to prove. In the case of Tova v. The State of Israel, the Israeli Supreme Court held that a buyer's original intention to demolish a residential apartment is evidence that the buyer did not intend to use the apartment for residential purposes.

The Supreme Court also held that other factors may be considered in determining the buyer's subjective intention, such as:

• The buyer's actions in connection with the purchase of the property, such as whether the buyer made a declaration of intent to use the property for residential purposes.
• The buyer's actions after the purchase of the property, such as whether the buyer obtained a building permit or began construction on the property.
• The purchase price of the property, which may be lower than the value of the property if it were used for residential purposes.

In conclusion: the definition of a residential apartment in Israeli law is based on a combination of objective and subjective elements. The subjective element is often difficult to prove, but the courts will consider a variety of factors in determining the buyer's intention.