New tax brackets 2016

Further changes to slices of charges on the fee schedule of acquisition

Here is the new tax brackets for the purchase of real estate starting from 16/01/2016 until the 15/01/2017:

The Israeli State has changes the scale with a small increase in levels as indicated in the table below in favour of the purchaser.

Below you will find the new tables of charges :

a. Practiced on a first housing apartment by an Israeli resident tax rate.

Value of the property Acquisition fee
0 to 1.600.175 NIS0%
1.600.175 NIS to 1.898.005 NIS3,5%
1.898.005 NIS to 4.896.605 NIS5%
4.896.605 NIS to 16.3223055 NIS8%
Beyond 16.322.055 NIS10%

It should be noted : The amount payable is calculated by bracket.

b. Tax rates practiced on a second apartment house by a resident of israel or a foreign resident for any acquisition.

Value of the propertyAcquisition fee
0 to 4.896.605 NIS8%
Beyond 4.896.605 NIS10%

It should be noted : The amount payable is calculated by bracket.

 

Galit Zamir, Lawyer at the bar of Israel

 
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