You maybe entitled to an exemption from purchase tax

Buying farmland? New immigrants? Handicapped? We have gathered all the conditions for a purchase tax exemption and benefits.

Smadar Arditi10/12/2017

A few traits can make you entitled of benefits or an exemption from purchase tax.

Farmland

If the property is a farmland, on the part of it’s price that is no higher than 477,215 nis, you will pay purchase tax of 0.5%. For the part of the price that is above 477,215 nis, you will pay purchase tax of 5%.

Benefit for new olim that purchase a house to live in

Who is entitled?

New olim that purchase a property at any time between a year before their aliya to 7 years after it. The benefit is valid also for olim that purchase a property with their spouses (if they got married after the purchase and no more than 12 months have passed, they will be refunded for the tax that they have payed).

What is the benefit?

They will pay purchase tax according to the further brackets:

First Bracket - up to 1,759,310 nis, 0.5% tax.

Second bracket - above 1,759,310 nis, 5% tax.

People with disabilities that purchase a house for theirselves to live in

Who is entitled?

Blind people, parents to children that have a 100%disability rate, people with a disability rate of a 100%, people who are defined by the national social security agency as at least 75% permanently incapable of earning, people with accumulated medical disability (different disabilities) defined as at least 90% rate, people that one of their limbs is amputated wad aere defined at least 50% disabled, IDF disabled with at least 19% rate of disability, victims of terrorism with at least 19% rate of disability and victims of traffic collisions with at least 50% disability rate.

What is the benefit?

on the part of the property’s price that is no higher than 2,500,000 nis, you are exempted from paying for the first tax bracket (1,623,320 nis). On the part of the price that is between 1,623,320 nis to the property’s price, you will pay purchase tax of 0.5%. If the property’s price is higher than 2,500,000 nis, you will pay purchase tax that is 0.5% of the property’s price.

Holocaust survivors

Who is entitled?

Holocaust survivors with a 50% (or more) disability rate, or people with at least 19% disability rate, that was caused by the war against the Nazis.

What is the benefit?

A facilitation - for a property bought for the survivor’s dwelling, the purchase tax’s rate will be lower and change according to the property’s price.

Bereaved families

Who is entitled?

Orphans up to 40 years old, widows, widowers and parents of soldiers killed in battles.

What is the benefit?

Bereaved families members buying a property for their own dwelling, are entitled to the same benefits such as the disabled (see above).

Family members of terrorism victims

Who is entitled?

Orphans up to 40 years old, widows, widowers and parents of terror victims.

What is the benefit?

Family members of terror victims that are buying a property for their own dwelling, are entitled to the same benefits such as the disabled (see above).

Orphans of “Harugei Malchut”

Who is entitled?

Orphans to Irgun and Lehi members, executed by the British during the mandate.

What is the benefit?

Orphans of “Harugei Malchut” are entitled of a 0.5% tax purchase rate.