Everything you need to know about Israel's property purchase tax: brackets, exemptions, profiles and calculations.
What is Mas Rechisha?
Mas Rechisha (מס רכישה) is a tax levied on every real estate purchase in Israel. The rate depends on the buyer's profile (first-time resident, investor, non-resident, or new immigrant) and the property price. It is paid to the Israel Tax Authority within 50 days of signing the purchase agreement.
Tax Brackets for 2024/25
For first-time resident buyers, properties up to ₪1,978,745 are exempt. Between ₪1,978,745 and ₪2,347,040 the rate is 3.5%. Between ₪2,347,040 and ₪6,055,070 it's 5%. Between ₪6,055,070 and ₪20,183,565 it's 8%, and above that 10%. Investors pay 8% on the first ₪6,055,070 and 10% above.
Special Cases: Olim and Dual Nationals
New immigrants (Olim Chadashim) benefit from reduced rates during their first 7 years in Israel. Dual nationals may be eligible for resident rates if they meet the 'center of life' test. Consult a tax lawyer for complex situations.
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