The tax authority: purchase tax is free for a single dwelling priced NIS 1,744,505

Posted on Dec 25, 2019 by Ifi Reporter

The tax authority is reporting an increase in the level of the purchase tax, according to the rate of increase in the index. In this case, in the case of a single dwelling, the minimum purchase tax threshold increased from NIS 1,696,750 to NIS 1,744,505, while in the case of another dwelling, if in 2019 an 8% tax on the value of up to NIS 5,194,225 was paid from the price of the apartment, then Tax is payable at this rate on the par value up to NIS 5,340,425.
In light of the changes, unit-dwellers from January 16 this year will be charged with purchase tax according to the following steps: On the par value up to NIS 1,744,505 - no tax will be paid; On the par value between NIS 1,744,505 and NIS 2,069,205, the buyer will be taxed at 3.5%;
On the par value between NIS 2,069,205 and NIS 5,338,290, the buyer will be taxed at 5%; If the par value exceeds NIS 5,338,290 and up to NIS 17,794,305, the buyer will be taxed at 8%; Whereas for the portion of the value in excess of NIS 17,794,305, the buyer will be taxed at a high rate - 10%.
If he purchases another apartment from the 16th, as aforesaid, he will pay an 8% tax on the portion up to NIS 5,340,425, and on the portion above that amount the buyer will pay 10% tax. For example, buying a single apartment for NIS 2.2 million would be taxed at NIS 17,905; Buying another apartment at a cost of NIS 6 million will pay NIS 493,192 in taxes.
There are a number of calculators throughout the network through which you can calculate the purchase tax, but it must be verified that these are reliable sites and that the calculators are updated according to the new steps.

 

he price of a room in Tel Aviv is the highest in Israel and reaches NIS 969,000, and is three times higher than the price of a room in Beersheba, which costs an average of NIS 298,000; The monthly rent per room in Tel Aviv reaches NIS 1,910 per month, compared with NIS 715 per month, which is the monthly rent per room in Be'er Sheva, according to housing data in the CBS Household Expenditure Survey in the 16 largest cities in Israel in 2018.
The survey includes a series of data related to housing and housing expenses in major cities in the country. For example, the percentage of people living in apartments owned by all households was 66.5%, compared to 28% living in rented apartments (the rest lived in cooperative apartments such as kibbutzim, and nursing homes and sheltered housing). In contrast, in Tel Aviv, 53% of households live in rents, which is the peak of rent. In Beit Shemesh, on the other hand, 76% of households live in apartments they own, and it is the highest in any percentage of apartment ownership.
The density of housing in the largest cities in Israel is quite low, except for the cities where the ultra-Orthodox population constitutes a significant percentage of the population. In Bnei Brak, Jerusalem and Beit Shemesh, housing density is higher than one person per room, and the average housing density in large cities is less than one person per room.


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