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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 976 246 euro in Haifa, Israel
976 246 €
Flat in Haifa, Israel
145 sq.m 5 4 3
Online Viewing Credit
On the top of Mount Carmel, near the University of Haifa, in the most modern housing complex "Migdaley David".
Victoria Real Estate Agent in Haifa
Flat for 4 683 527 euro in Netanya, Israel
4 683 527 €
Flat in Netanya, Israel
500 sq.m
Citizenship Online Viewing
A luxury apartment occupying an entire floor is located in the city of Yamim on the 1st line from the sea, in one of the most sought-after areas of Netanya. The apartment has an area of 500 square meters, and another 50 square meters of private balconies with panoramic views of the sea and the green surroundings. The apartment is located on...
Intermark Global
Villa for 4 825 452 euro in Netanya, Israel
4 825 452 €
Villa in Netanya, Israel
500 sq.m 4
Citizenship Online Viewing
The villa is located just a few minutes walk from the sea. It is located on a plot of 740 m2; has 500 m2 of living space on 3 floors. The villa has a large open living room with double height ceilings, a large kitchen, a spacious master bedroom with bathroom and dressing room, a bedroom with bathroom and two additional bedrooms.In the beautiful...
Intermark Global
Flat for 1 200 000 euro in Bat Yam, Israel
1 200 000 €
Flat in Bat Yam, Israel
120 sq.m 5 4 3
Apartment in a new house in a new prestigious area, near the sea 5 rooms. 120 m2 20th floor. Sea view. Designer renovation. 2 underground parking lots and a storage room.
ISRA HOME
Flat for 1 250 000 euro in Rishon LeZion, Israel
1 250 000 €
Flat in Rishon LeZion, Israel
139 sq.m 5 4 3
For sale in Rishon Lezion, near Tel Aviv Apartment 5 rooms 139 sq.m. and two balconies with a total floor area of 30 sq.m. Double underground parking. The north-west direction of the windows. Designer renovation. 11th floor of the 12th
ISRA HOME
Flat for 660 000 euro in Rishon LeZion, Israel
660 000 €
Flat in Rishon LeZion, Israel
115 sq.m 5 4 2
Transaction analysis! There are not many opportunities for a private person to earn money on real estate in Israel.Judge for yourself: the rental yield varies from 1.5% in Tel Aviv and the center to 3-4% in the periphery, prices are high, the apartment even in the initial stage of construction is not much cheaper than the finished one. But there...
ISRA HOME
Flat for 326 650 euro in Haifa, Israel
326 650 €
Flat in Haifa, Israel
90 sq.m 4 3 1
Credit
Attention!!! A great opportunity to buy a nice apartment in the Neve Shaanan area! 4.5 rooms balcony with sea view security room in the apartment Spacious bathroom Large parent's bedroom Air conditioning system Elevator Private parking Warehouse Bus stop near the house.. minimarket within walking distance..etc
Victoria Real Estate Agent in Haifa
Flat for 414 000 euro in Haifa, Israel
414 000 €
Flat in Haifa, Israel
100 sq.m 4 3 2
Online Viewing
For sale! On the beautiful, quiet Einstein street +spacious 4-room apartment, 100 sq.m +large kitchen (can be separated from the salon if desired) +two bathrooms, one bathroom +bright spacious living room with a nice view +4 air directions +parking !!! +warehouse +comfortable floor A wonderful option for a family,there are good schools,...
Victoria Real Estate Agent in Haifa
House for 4 285 071 euro in Herzliya, Israel
4 285 071 €
House in Herzliya, Israel
320 sq.m 5 4
Israel Habitat
House for 6 376 593 euro in Herzliya, Israel
6 376 593 €
House in Herzliya, Israel
400 sq.m 6 6
Israel Habitat
House for 8 927 231 euro in Herzliya, Israel
8 927 231 €
House in Herzliya, Israel
600 sq.m 5 5
Israel Habitat
House for 4 718 679 euro in Herzliya, Israel
4 718 679 €
House in Herzliya, Israel
400 sq.m 5 4
Israel Habitat
House for 5 611 402 euro in Herzliya, Israel
5 611 402 €
House in Herzliya, Israel
400 sq.m 6 6
Israel Habitat
House for 15 303 824 euro in Herzliya, Israel
15 303 824 €
House in Herzliya, Israel
750 sq.m 5 5
Israel Habitat
House for 5 738 934 euro in Herzliya, Israel
5 738 934 €
House in Herzliya, Israel
340 sq.m 5 5
Israel Habitat
House for 4 081 020 euro in Herzliya, Israel
4 081 020 €
House in Herzliya, Israel
420 sq.m 5 5
Israel Habitat
Apartment for 3 698 424 euro in Israel
3 698 424 €
Apartment in Israel
195 sq.m 4 3
Israel Habitat
Apartment for 2 780 195 euro in Herzliya, Israel
2 780 195 €
Apartment in Herzliya, Israel
115 sq.m 3 3
Israel Habitat
Flat for 575 000 euro in Rishon LeZion, Israel
575 000 €
Flat in Rishon LeZion, Israel
107 sq.m 4 3 2
Renovated 4-room apartment for sale in the picturesque town of Rishon Lezion, on Mania Shohat Street, in the Remez area. The area of the apartment is about 107 sq. m., it has two bathrooms and showers. The apartment is located on the 4th floor of 4, there is no elevator in the building. Parking is fixed in the land registry. Each room has air...
ISRA HOME
Flat for 395 000 euro in Haifa, Israel
395 000 €
Flat in Haifa, Israel
90 sq.m 4 3 2
For sale,on aTamar street in Haifa 4-room apartment,bright,spacious excellent layout Kitchen and salon( open space) the separate bedrooms are quiet and comfortable the apartment has its own warehouse 7-10 minutes drive from the sea
Victoria Real Estate Agent in Haifa

Source: The Jerusalem Post

Quoting conditions of Prian.info materials

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