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Israel Has Increased the Tax on the Purchase of Investment Housing

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The purchase of a second apartment was taxed at 5%, now the fee has been increased to 8%.

What happened? The Israeli Parliament has approved an increase in the tax on the purchase of investment housing from the current level of 5% to 8%. Real estate worth up to $1.86 million will be taxed at a rate of 8%, and real estate worth more than that sum will be taxed at a rate of 10%.

The law was established as a temporary provision for three years with the possibility of extension for another two years with the approval of the Finance Committee. This measure is designed to reduce housing prices and demand for apartments.

Context. The tax on the purchase of investment housing was 8% until July 2020, when then Finance Minister Moshe Kahlon reduced it to 5% to encourage investors to buy real estate. After that, investor demand has grown significantly, increasing from 13% to 20% of all housing sales on the market. This contributed to a sharp rise in housing prices and drove young couples out of the domestic market.

According to the Central Bureau of Statistics, house prices in Israel have increased by an average of 9.9% over the past 12 months and have more than doubled over the past decade. The government has made price containment the main goal of the coalition and has set a goal to increase the number of apartments by 300,000 in the coming years.

Examples of residential real estate in Israel:
Flat for 1 833 054 euro in Netanya, Israel
1 833 054 €
Flat in Netanya, Israel
300 sq.m 7 5 4
Credit
Luxury apartment, located on the first line of the sea in Netanya, in one of the most prestigious projects in Israel called Terraces. High 18th floor, double two, 5-room apartments in one, expensive finishing, expensive furniture. The house has 2 swimming pools, indoor heated and outdoor swimming pool, gym, sauna.
Israel Home
Flat for 1 878 880 euro in Netanya, Israel
1 878 880 €
Flat in Netanya, Israel
210 sq.m 6 5 4
Credit
One of Netanya's most exclusive projects, the Migdal David project. A large 6-room apartment with a large balcony and panoramic views of the sea and the city. The house is located right next to the main promenade of Netanya, the descent to the sea in front of the house. The house has a SPA, fitness room, heated swimming pool, hammam, dry and wet...
Israel Home
Penthouse in Tel Aviv, Israel (price on request)
Price on request
Penthouse in Tel Aviv, Israel
1150 sq.m 4 3 3
Credit
Luxury new full-story penthouse for sale in Tel-Aviv, Israel. The penthouse is located in one of the fashionable skyscrapers of Tel Aviv. This luxury penthouse masterpiece is the only one of its kind, with an area of 1150 sq. M. M, of which 570 sq. M. M and 580 square meters. M. - Open terrace with private pool. In addition, the penthouse...
Israel Home
Villa for 13 610 427 euro in Herzliya, Israel
13 610 427 €
Villa in Herzliya, Israel
675 sq.m 6 6
Credit
New, modern villa in Herzliya Pituah. Located on the first coastline (to the sea 5 minutes). The location is excellent - quiet. The villa itself is cozy, heated floor, climate control, the house has a smart home system. The villa is equipped with a lift, for recreation there is a cinema, a Turkish bath, a sauna, a gym. From the windows of the...
Israel Home
Flat for 1 300 000 euro in Netanya, Israel
1 300 000 €
Flat in Netanya, Israel
160 sq.m 5 4 3
Credit
Luxury apartment for sale in Netanya, Migdal David project. The project has an indoor swimming pool, SPA, hammam, dry and wet sauna, underground parking, high floor, sea and city views.
Israel Home
Penthouse for 1 573 654 euro in Netanya, Israel
1 573 654 €
Penthouse in Netanya, Israel
220 sq.m 6 5
Sale of a mini penthouse, Netanya, the new district of the city - Ir Yamim.220 sq.m living area, 60 sq.m balcony with a view of the city and the sea.6 rooms, 5 bedrooms, 30 floor, in the house security 24 hours a day, fitness, jacuzzi, sauna, billiard room, children's room, underground parking.
Israel Home
Villa for 9 165 271 euro in Tel Aviv, Israel
9 165 271 €
Villa in Tel Aviv, Israel
800 sq.m 8
Sale of a new villa in Tel Aviv area of 800 sq.m. Heated swimming pool, jacuzzi, smart house, parking for 10 cars.
Israel Home
Flat for 265 000 euro in Caesarea, Israel
265 000 €
Flat in Caesarea, Israel
65 sq.m 3 2 1
Credit
Very favorable price!!!! Great offer in the elite city of Caesarea! Apartment in a gated complex - Neot Golf. The complex has a large Alempian swimming pool, gym, territory security 24 hours a day, free Parking. Buyers have the right to use the swimming pool, gym and tennis court free of charge, for 6 family members. Very favorable...
Israel Home
Villa in Caesarea, Israel (price on request)
Price on request
Villa in Caesarea, Israel
350 sq.m 5 4
Villa for sale in Caesarea! The location of the villa inspires its guests to leisurely contemplation of nature. The villa meets the highest level of luxury and uniqueness. The interior is a combination of modern and classical styles with antique elements of gold and wood. Description: - for 9 persons - 4 bedrooms - 4 bathrooms -...
Israel Home
House for 2 604 404 euro in Caesarea, Israel
2 604 404 €
House in Caesarea, Israel
485 sq.m 9 5
Stunning gated 3-storey estate located on one of the most prestigious streets of Caesarea. Offers 5,220 square feet of modern and luxurious living. At the lower level, complete with two offices with access to the patio, conference room, library, cinema, gym, large bathroom, and laundry. The entrance level of the spacious living room with vaulted...
Israel Home
House in Tel Aviv, Israel (price on request)
Price on request
House in Tel Aviv, Israel
300 sq.m 2 1
This marvelous home spreads over 300 sqm and has an additional 50 sqm terrace at the ground level. As soon as you enter this fabulous house you arrive in a very spacious full of light living room. On this level you will also find a full equipped kitchen and a large dining area. From there you can also exit to the serene terrace which also offers...
Israel Home
Flat for 1 000 000 euro in Netanya, Israel
1 000 000 €
Flat in Netanya, Israel
130 sq.m 4 3 2
Credit
Apartment for sale in Netanya, NAT600 sea line area, open sea view, 4 rooms, 130 sq.m, balcony 14 sq. m, all furniture, 2 underground Parking, storage room, immediate entry. We help in finding a short-term rental property in Israel, in a long-term lease or with the purchase of real estate in Israel, in all coastal cities of the country. We...
Israel Home
Penthouse for 9 165 271 euro in Tel Aviv, Israel
9 165 271 €
Penthouse in Tel Aviv, Israel
400 sq.m 7 6 6
Duplex in the prestigious new Nofei Yam neighborhood in north Tel Aviv. The area is 400 sq.m. and balconies are 160 sq.m. 6 bedrooms with bathrooms 2 kitchens and two living rooms. The apartment has 4 packing rooms and 2 storage rooms It can be divided into two apartments.
ISRA HOME
Penthouse for 1 720 000 euro in Haifa, Israel
1 720 000 €
Penthouse in Haifa, Israel
190 sq.m 5 4 3
Online Viewing Remote Transaction
This is completely new boutique building,just five floors. Penthouse occupies the entire fifth floor and has a roof terrace 100 sq.m also there are to balconies ! so we have : four bedrooms with shower and toilets attached to each room huge living room ceiling height 3m preparation for a gas fireplace in the living room marble...
Victoria Real Estate Agent in Haifa
Flat for 4 000 000 euro in Tel Aviv, Israel
4 000 000 €
Flat in Tel Aviv, Israel
175 sq.m 4 3 3
Online Viewing
One of the most prestigious buildings on Rothschild Boulevard. The apartment is 175 sq.m. and the balcony is 12 sq.m. Designer renovation. 4 rooms - 3 bedrooms and a living room. 11th floor of the 21st South-east direction. 2 underground parking lots. There is a 24/7 concierge in the building A gym and a room for business meetings.
ISRA HOME
House for 23 401 594 euro in Herzliya, Israel
23 401 594 €
House in Herzliya, Israel
1000 sq.m 7 7
Prime Location! a luxury Villa for Sale in Herzliya Pituach, 1200 sq.m on 1000 sq.m plot of land. 5 Suits on, 2 Master rooms. A 36 m2 swimming pool, an elevator, Cinema room, gym, underfloor heating, all smart electricity systems.
Israel Habitat
House for 4 671 207 euro in Herzliya, Israel
4 671 207 €
House in Herzliya, Israel
400 sq.m 5 5
Excellent and Quiet Location Approximately 500 sqm of land. Approximately 400 sqm built. 5 bedrooms, 5 bathrooms. Swimming pool, elevator, smart home technology. Modern design. Asking price: 18,500,000 NIS.
Israel Habitat
Apartment for 5 172 984 euro in Herzliya, Israel
5 172 984 €
Apartment in Herzliya, Israel
Land for Sale The plot is 818 square meters, but there are an additional 50 meters at the front (previously approved). This allows me to bring the house closer to the front (closer building line) and leaves me with a larger house and a larger yard. There is approval in a month for a house of about 800 square meters. 9 suites. Corner house. 200...
Israel Habitat
Apartment for 2 752 224 euro in Herzliya, Israel
2 752 224 €
Apartment in Herzliya, Israel
115 sq.m 3 3
Right across from the beach and very close both to tiran square and the sharon square. Roof top apartment with great sea view! 115 sqm + 35 sqm balconies. 95 sqm roof top terrace overlooking the sea! 3 bedrooms, 3 bathrooms. 2 underground parking spaces. Storage. Asking 10,900,000 shekels.
Israel Habitat
Flat for 1 100 000 euro in Tel Aviv, Israel
1 100 000 €
Flat in Tel Aviv, Israel
60 sq.m 3 2 1
New apartment in a renovated Bauhaus-style building in the picturesque Nahalat Benjamin area. This 60 sq.m apartment combines the beauty of antiquity and the convenience of modernity. The house was completely renovated, leaving the historical facade. With high ceilings - 3.5 m, a sunny living room due to the south-western orientation of...
ISRA HOME

Source: The Jerusalem Post

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Tags: Israel, Investment, Real Estate, Taxes and fees

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