Section 9 (a) to real estate taxation law (Capital gains, Sale and Purchase) , which imposes liability to pay purchase tax, states:
(A) In the sale right of real estate, will be the buyer must pay the purchase tax (hereinafter – purchase tax ) The rate will be a percentage of the sale value or a fixed amount, according to the type of sale or real estate, all as determined by the Minister of Finance with the approval of the Knesset Finance Committee.
By law, each purchaser of any real estate – be it land, office, shop, factory, business, apartment building or a residential apartment – is required to file a statement of purchase and payment of purchase tax , according to a scaled rate which is updated once every 3 months.
Purchase tax is paid to the real estate tax authorities within 50 days of signing the purchase contract, provided it will be calculated independently, as will be explained below.
In some cases you can ask for leniency or a tax-exemption from the purchases tax.
Buying an apartment as an investment property (for example, by a contractor) or to turn it into a business (office, clinic, etc.), is committed to a tax rate of 5%, and not according to the scaled rate.
