n a groundbreaking judgment delivered on May 27, 2025, by the Real Estate Tax Appeal Committee in Jerusalem, Judge Avigdor Dorot ruled that a new immigrant (Olah Chadasha) is entitled to a purchase tax benefit on an apartment purchased under construction ("on paper"), even when more than two years have passed since the date of purchase due to construction delays. This decision constitutes an important precedent for new immigrants and real estate investors.
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Case Background

The matter concerned Ms. Bonnie Eisler, who purchased an apartment from a contractor on September 3, 2017, but became an Israeli resident only on December 1, 2020—approximately 3 years and 3 months after the purchase. The Director of Real Estate Taxation Jerusalem rejected her request for the purchase tax benefit for new immigrants, arguing that more than two years had passed between the purchase and her becoming an Israeli resident.
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Special Circumstances
The appellant faced exceptional circumstances:

• Significant delays in the completion of construction by the contractor.
• Travel restrictions due to the COVID-19 virus which delayed her Aliyah to Israel.
• Active efforts on her part to accelerate her arrival date in Israel.
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Legal Determinations

Innovative Interpretation of "Purchase Date"
The Judge ruled that an analogy should be drawn from Section 49C to Section 9 of the Real Estate Taxation Law, interpreting that in the case of an apartment under construction, the relevant purchase date is the date of construction completion and not the date of signing the purchase agreement.
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Sufficient Cause for Extension
The Court recognized that these factors constitute "sufficient cause" for extending the deadline in accordance with Section 107(a) of the Real Estate Taxation Law, based on:

• Construction delays by the contractor.
• Travel restrictions due to the COVID-19 pandemic.
• The appellant's efforts to advance her Aliyah.
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The Reich Precedent
The judgment relies on the Reich ruling, which established that the Director of Real Estate Taxation has the authority to extend "any date" prescribed by law, including dates related to receiving tax benefits.
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Legislative Purpose

Providing a Solution for Contractor Apartment Buyers
The Judge emphasized that the purpose in both sections is identical—to provide a solution for a homebuyer whose apartment construction was not completed on time, allowing them to receive the tax benefit. As a witness on behalf of the Respondent noted: "The Tax Authority understood the need to give a little more time to those purchasing apartments from a contractor."
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Protecting the Rights of New Immigrants
The judgment reinforces the rights of new immigrants and provides a fair solution for situations where exceptional circumstances prevent compliance with the deadlines set by law.
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Practical Implications

For New Immigrants:

• Expanded eligibility for tax benefits even in cases of construction delays or exceptional circumstances.
• Protection against circumstances beyond control, such as pandemics or contractor delays.
• The possibility of applying to the Director of Real Estate Taxation to request an extension.
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For Real Estate Investors and Homebuyers:

• Legal clarity regarding the relevant purchase date for apartments under construction.
• Protection against contractor delays that could jeopardize eligibility for benefits.
• An important precedent for similar cases involving exceptional circumstances.
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Compliance Requirements

Proof of Efforts to Accelerate Aliyah
The Court emphasized that the appellant "did everything in her power to hasten her arrival to Israel." This is an important criterion for proving good faith.
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Proven Special Circumstances
Eligibility for an extension is conditional on proving special and exceptional circumstances that prevented meeting the deadline, rather than merely a general request for an extension.
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Practical Recommendations

For New Immigrants Purchasing Apartments:

• Carefully document all construction delays and efforts to accelerate Aliyah.
• Keep correspondence with the contractor regarding delays in the project.
• Submit a reasoned request to the Director of Real Estate Taxation in case of exceptional circumstances.
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For Contractors and Investment Advisors:

• Explain to buyers the implications of construction delays on eligibility for tax benefits.
• Assist in proper documentation of all stages in the purchase and construction process.
• Recommend tax consultation in complex cases.
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Conclusions

The judgment represents a significant breakthrough in the field of purchase tax and grants important protection to new immigrants and buyers of apartments from contractors. The decision highlights the importance of a purposive interpretation of the law that takes into account legislative goals, not just formal wording.
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This decision is expected to lead to a more accommodating approach by tax authorities in handling requests for deadline extensions in justified cases, and to strengthen the rights of apartment buyers in projects experiencing delays.

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