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:
Villa for 2 400 000 euro in Ashdod, Israel
2 400 000 €
Villa in Ashdod, Israel
420 sq.m 8 5 4
Luxury villa, located on the second line of the sea in the most prestigious area of the city of Ashdod.
Israel Home
Flat for 762 809 euro in Netanya, Israel
762 809 €
Flat in Netanya, Israel
132 sq.m 4 3 2
4-room apartment with panoramic sea views in a prestigious complex - Sea Opera. The complex is located on the first line of the sea, before descending to the beach. The complex has a swimming pool, fitness room, underground Parking.
Israel Home
Villa for 1 641 489 euro in Netanya, Israel
1 641 489 €
Villa in Netanya, Israel
300 sq.m 6 5 4
Villa in Netanya with a swimming pool of 300 sq.m. Living area + 450sq.m. Plot. Marble floors, smart home system, alarm system, central vacuum cleaner, lighting, kitchen on special order, separate living unit 3 rooms with separate entrance, garage. There are 6 rooms in total.
Israel Home
Manor in Caesarea, Israel (price on request)
Price on request
Manor in Caesarea, Israel
1660 sq.m 9 5 8
For sale a luxury estate in Caesarea. Architecture in the Roman style. Near the sea, with large spacious areas, high ceilings. Very well maintained, in a quiet area. The size of the plot is 6.750 sq.m. The built up area is 1.660 sq.m. The size of the balconies is 500 sq.m. Number of rooms - 9 Number of bedrooms - 5 Number of...
Israel Home
Villa for 5 508 407 euro in Netanya, Israel
5 508 407 €
Villa in Netanya, Israel
500 sq.m 7 6 4
For sale is a luxury villa in the northern suburbs of Netanya. The house is on the first line 50 m. From the sea. Designer, the famous Portuguese art designer of the English princess Diana in the past. A non-standard exterior design made from various art objects.
Israel Home
Villa in Tel Aviv, Israel (price on request)
Price on request
Villa in Tel Aviv, Israel
560 sq.m 10
Villa for sale in an excellent location, on a quiet street in Savyon, Tell area: 2.100 squareng area: 560 sq.m.10 rooms, 4ian cuisine, well-groomed garden with fruit trees, covered relaxation areas, swimming pool, parking for two cars, security system.
Israel Home
Penthouse for 1 657 879 euro in Netanya, Israel
1 657 879 €
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
Flat for 2 607 070 euro in Netanya, Israel
2 607 070 €
Flat in Netanya, Israel
230 sq.m 5
Spacious apartment with a large balcony overlooking the sea from the west, north and south sides. The apartment consists of a spacious living room, a luxurious kitchen, five bedrooms and three bathrooms.The Terrace Apartment Building, built by the Baudelaire Investment Company, is a luxury building on the prestigious Nice Boulevard in Netanya....
Israel Home
Flat for 260 707 euro in Netanya, Israel
260 707 €
Flat in Netanya, Israel
37 sq.m 2
Sale of a 2-room apartment on a high floor in the Migdal C project in Netanya. The first line of the sea, panoramic views of the city and the sea.
Israel Home
Loft for 8 500 000 euro in Tel Aviv, Israel
8 500 000 €
Loft in Tel Aviv, Israel
220 sq.m 4 3 3
Duplex for sale in Tel Aviv. Elite complex - Royal Beach, the first line of the sea in Tel Aviv. The duplex has 220 sq.m living area, 4 rooms, 3 large bedrooms, 2 balconies, sold with all furniture. The price is 8,500,000 euros. Konstantin Bass +972587887553 Israelhome Company Company website
Israel Home
Villa for 9 655 815 euro in Tel Aviv, Israel
9 655 815 €
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 8 690 234 euro in Tel Aviv, Israel
8 690 234 €
Flat in Tel Aviv, Israel
285 sq.m 4 3
Flat premium in Tel Aviv, in a prestigious project Migdalei Alrov. 4 rooms, 3 bedrooms and hotel. From the apartment is easily visible sea, the complex has a swimming pool, sports hall, apartment attached to the underground parking and storage room.
Israel Home
House for 2 743 797 euro in Caesarea, Israel
2 743 797 €
House in Caesarea, Israel
500 sq.m 6 6
A spacious and elegant estate situated topographically high, which grants it is magnificent panoramic sea the main floor you will find a well equipped gourmet kitchen with adjoining oversized pantry, which connects to a formal dining area withA natural wood same level also includes ensuite master bedroom with walk in closet, and exclusive...
Israel Home
House for 4 181 025 euro in Ra'anana, Israel
4 181 025 €
House in Ra'anana, Israel
600 sq.m 11 7
Its living space come up to 770 sqm spread over 4 levels. Inside one will find 11 bedrooms, grand dining area as well as an eat in kitchen, spacious full of light living room and a lot of amenities such as home theater and a game rom. Each room features an exclusive design with every little piece of accessory well thoughtng sunny Israeli summer,...
Israel Home
House for 5 748 909 euro in Tel Aviv, Israel
5 748 909 €
House in Tel Aviv, Israel
600 sq.m 7 7
In the heart of this exceptional neighborhood found itself an outstanding private home with its own orange grove, tennis court and swimming pool. The house itself spreads over 600 sqm and has additional 61 sqm of terraces. It is fully renovated and has 6 in-suite bedrooms and a spacious master bedroom. For your convenience it has an expansive...
Israel Home
House for 6 532 851 euro in Tel Aviv, Israel
6 532 851 €
House in Tel Aviv, Israel
531 sq.m 7 6
Spacious 3 story Mediterranean-antique style with superb making and care for details, filled with art and antiques.
Israel Home
Flat for 7 186 136 euro in Tel Aviv, Israel
7 186 136 €
Flat in Tel Aviv, Israel
413 sq.m 5
The complex is also very rich in amenities. It includes a luxurious lobby, 24/7 concierge services, surveillance cameras, private elevator and 4 parking refined penthouse spreads over 413 sqm and has additional 108 sqm of terraces. The interior itself was designed by Pitsou Kedem and includes marble and parquet flooring, designed kitchen and...
Israel Home
Flat for 1 351 814 euro in Netanya, Israel
1 351 814 €
Flat in Netanya, Israel
230 sq.m 5 4
Luxury mini penthouse for sale in Ir Yamim, Netanya, 5 rooms, 190 sq.m living area, 40 sq.m balcony, panoramic sea view, swimming pool, gym, 2 underground Parking.
Israel Home
Flat for 612 000 euro in Netanya, Israel
612 000 €
Flat in Netanya, Israel
100 sq.m 4 3 2
A very good offer on the second line of the sea!!! We help in the search for short-term rental of real estate in Israel, in long-term rental or with the purchase of real estate in Israel in all coastal cities of the country. We will also be able to help with the transfer of funds to Israel. In the database of our company there are more than 1000...
Israel Home
Villa for 4 000 000 euro in Ramat Gan, Israel
4 000 000 €
Villa in Ramat Gan, Israel
342 sq.m 9 7 5
Quiet, not a passing street. Plot of 670 sq.m. The building area is 342 sq.m. On 4 levels. 9 rooms. 5 bathrooms A chic, well-maintained garden. There is an opportunity to make a swimming pool. Pastoral view from the windows. 2 parking lots

Source: The Jerusalem Post

Quoting conditions of Prian.info materials

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