Real estate transactions in Israel involve significant statutory tax obligations, including Capital Appreciation Tax (Mas Shevach) upon sale and Purchase Tax (Mas Rechisha) upon acquisition.

Key Real Estate Tax Components:

  • Real Estate Appreciation Tax (Mas Shevach): Levied at 25% on net capital gains upon property sale, subject to single residential home exemptions.
  • Purchase Tax Brackets (Mas Rechisha): Progressive tax rates ranging from 0% for single residential home buyers up to 8%-10% for additional properties.
  • Tax Spreading (Priasat Mas): Spreading real estate capital gains retroactively across 4 tax years to utilize lower marginal tax brackets and credit points.

Bernstein & Co. performs strategic real estate tax calculations to minimize capital tax liabilities on property transactions.