When purchasing a property in Israel everyone is subject to pay Purchase Tax (Mas Rechisha).
For Israeli citizens buying their first (and only) residential property Mas Rechisha is graduated according to the following brackets:
|Up to 1,600,175 NIS of the purchase price||0%|
|1,600,175 – 1,898,005 NIS of the purchase price||3.5%|
|1,898,005 – 4,896,615 NIS of the purchase price||5%|
|4,896,615 – 16,322,055 NIS of the purchase price||8%|
|16,322,055 NIS and above||10%|
For foreigners, or anyone buying an additional residential home Mas Rechisha is graduated as follows:
|Up to 4,896,615 NIS of the purchase price||8%|
|4,896,615 NIS and above||10%|
For New Olim the Mas Rechisha rates are as follows:
|Up to 1,734,225 NIS of the purchase price||0.5%|
|1,734,225 NIS and above||5%|
New Olim are able to use their rights within the first seven years of making Aliya; although in most cases (cases in which you are buying a first property) an Oleh is actually better off, and will pay less tax, if he purchases the property as an Israeli.
Click here for a Mas Rechisha calculator in English to estimate what your Purchase Tax will be: www.buyitinisrael.com/mas-rechisha-calculator/
*Rates are applicable from 16/01/2016 until 15/01/2017