## **Purchase Tax Brackets for Apartment Buyers and Tax Calculation in Israel**<\/p>\n
When purchasing residential property in Israel, the buyer is required to pay a **Purchase Tax (Mas Rechisha)**. The tax rate depends on several factors, including:<\/p>\n
* Whether the property is the buyer\u2019s **only residence**.
\n* The **purchase price** of the property.
\n* Whether the buyer is a **foreign resident**, **Israeli citizen**, or purchasing an **investment property**.
\n* Whether the buyer is eligible for any **tax exemptions** or **benefits** (e.g., Olim Hadashim, disabled individuals, inheritance, etc.).<\/p>\n
### \ud83e\uddee **How Purchase Tax Is Calculated**<\/p>\n
Purchase tax is calculated using **progressive tax brackets**. Each portion of the property’s price is taxed according to its position within the applicable bracket. The rates are updated annually by the Israel Tax Authority, typically on **January 16**.<\/p>\n
### \ud83c\udfe0 **Main Residence (Single Residential Property) \u2013 2024\/2025 Rates (valid from Jan 16, 2024):**<\/p>\n
| Price Range (NIS) | Tax Rate |
\n| ————————- | ——– |
\n| Up to 1,919,155 | 0% |
\n| 1,919,156 \u2013 2,276,360 | 3.5% |
\n| 2,276,361 \u2013 5,872,425 | 5% |
\n| 5,872,426 \u2013 19,574,755 | 8% |
\n| From 19,574,756 and above | 10% |<\/p>\n
\u2705 These rates apply only if the buyer **does not own any other apartment** in Israel or if they commit to selling an existing apartment within 18 months.<\/p>\n
—<\/p>\n
### \ud83c\udfd8 **Investment Property \/ Additional Apartment**<\/p>\n
If the buyer already owns a residential property in Israel, higher rates apply:<\/p>\n
| Price Range (NIS) | Tax Rate |
\n| ———————— | ——– |
\n| Up to 6,469,500 | 8% |
\n| From 6,469,501 and above | 10% |<\/p>\n
—<\/p>\n
### \ud83c\udf0d **Foreign Residents**<\/p>\n
Foreign residents who do not hold Israeli residency (or do not meet the \u201conly home\u201d criteria) are typically taxed at the **investment property rates** unless they qualify for an exemption.<\/p>\n
—<\/p>\n
### \u2733\ufe0f **Special Cases and Exemptions**<\/p>\n
Some buyers may be eligible for **reduced tax rates or exemptions**, such as:<\/p>\n
* **Olim Hadashim (new immigrants)** \u2013 once within 7 years of Aliyah.
\n* **Disabled persons**, **bereaved families**, or **victims of terror**.
\n* **Inheritance of a property**.
\n* **Divorce settlements** or property transfer between family members.<\/p>\n
Each case has its own eligibility requirements and documentation process.<\/p>\n
—<\/p>\n
### \ud83e\uddfe Example Calculation \u2013 Main Residence:<\/p>\n
A buyer purchases a **primary residence** worth **\u20aa3,000,000**:<\/p>\n
1. First \u20aa1,919,155 \u2013 0% = \u20aa0
\n2. Next \u20aa357,205 (to \u20aa2,276,360) \u2013 3.5% = \u20aa12,502
\n3. Remaining \u20aa723,640 (to \u20aa3,000,000) \u2013 5% = \u20aa36,182<\/p>\n
**Total Purchase Tax = \u20aa48,684**<\/p>\n","protected":false},"excerpt":{"rendered":"
## **Purchase Tax Brackets for Apartment Buyers and Tax Calculation in Israel** When purchasing residential property in Israel, the buyer is required to pay a **Purchase Tax (Mas Rechisha)**. The tax rate depends on several factors, including: * Whether the property is the buyer\u2019s **only residence**. * The **purchase price** of the property. * Whether […]<\/p>\n","protected":false},"author":1,"featured_media":12261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[49],"tags":[],"acf":[],"yoast_head":"\n