Purchase Tax

  

Purchase Tax (מס רכישה), otherwise referred to as Stamp Duty Land Tax (SDLT) or Acquisition Tax, is as a one-off tax charge paid by the buyer on the purchase of land or real estate. The purchase tax is triggered each time there is a change in ownership.

This article is about מס רכישה – purchase tax rates in Israel on residential property purchased by an individual. How much you actually pay is calculated based on the following criteria:

– Type of property (commercial or residential)

– The value of the property

– The circumstances of the buyer (first-time buyer, Oleh Chadash, Company, etc.)

There are lower rates of purchase tax for first-time buyers, Olim Chadashim, and other eligible persons. However, the purchase tax rates in Israel are higher on a second property.

As of 15/08/2024, purchase tax as follows*:

Single Residential Home

Applicable when the property purchased is the only residential property owned in Israel. 

Up to NIS 1,978,745 of the purchase price	0%
NIS 1,978,745 – NIS 2,347,040 of the purchase price	3.5%
NIS 2,347,040 – NIS 5,872,725 of the purchase price	5%
NIS 6,055,070 – NIS 20,183,565 of the purchase price	8%
NIS 20,183,565 and above	10%

Additional Residential Home

Applicable when the individual owns more than one residential property in Israel. [Foreign residents pay purchase tax at the same rate as Israeli residents who own more than one home in Israel.]

Up to NIS 6,055,070 of the purchase price	8%
NIS 6,055,070 and above	10%

Olim Chadashim (new Immigrants)

On a sole residence purchased on or after August 15, 2024, where the purchase price is less than 20 million shekels:

Up to NIS 1,978,745 of the purchase price	0%
NIS 1,978,745 – NIS 6,000,000 of the purchase price	0.5%
NIS 6,000,000 – NIS 6,055,070 of the purchase price	5%
NIS 6,055,070 – NIS 20,000 of the purchase price	8%
Purchases above NIS 20,000,000	N/A

The discounted rate for Olim applies to one residential property purchased within the first seven years of making Aliyah, or up to 12 months before.