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.