Housing purchase tax cut approved for new immigrants

The Knesset Finance Committee today approved an amendment to the real estate tax regulations regarding the benefits that new immigrants receive when purchasing real estate in Israel. New immigrants will be entitled to pay a reduced purchase tax of 0.5% instead of 3.5%-5% on a single home worth up to NIS 6 million.

According to the amendment, new immigrants, like all Israelis who buy a home in Israel, will be exempt from purchase tax on the first NIS 1.98 million of any first home (as of 2024), and above NIS 1.98 million and up to NIS 6 million (according to the 2024 index), new immigrants will pay a 0.5% purchase tax. Israelis must pay a 3.5% purchase tax on the bracket from NIS 1.98 million to NIS 2.34 million and a 5% purchase tax on the bracket from NIS 2.34 million to NIS 6 million. Above NIS 6 million, new immigrants will pay an 8% purchase tax, like all Israelis, and a 10% purchase tax above NIS 20 million.

Finance Minister Bezalel Smotrich said: “The State of Israel embraces immigrants, especially at this time when we as a country must do everything possible to facilitate the return of new immigrants from all over the world to their homes.”

Minister of Immigration and Integration Ofir Sofer welcomed the approval of the move, saying: “This is good news that will help many immigrants settle in Israel and will encourage interest in immigration and the decision to immigrate to Israel. Since the beginning of the war, immigration to Israel has continued and interest has increased.”

This article was published in Globes, Israeli Business News – en.globes.co.il – on July 29, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.