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New Increase in Purchase Tax for Foreign Buyers

tourists-685x310Purchase tax along with other costs must be taken into consideration when purchasing a property in Israel.  This is especially in light of amendment 75 of the Law of Real Estate Tax beginning on the sixth of May 2013 and continuing until the 31st of December 2014.  This amendment affects most real estate purchases, especially for foreign buyers and on luxurious properties (over NIS 4,500,000).  Purchase tax is based on a linear scale that corresponds with the purchase price.  The tax varies greatly from Israeli residents who currently do not own a property to those purchasing a second home.  Foreign buyers are in the same purchase tax bracket as those purchasing a second property, even if they are only purchasing their first apartment.  Below is the purchase tax bracket applicable until 31/12/2014

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