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מס רכישה – Purchase tax calculator

Purchase tax calculator

Buying property in Israel is an exciting step, but it also involves navigating the country’s tax laws. One of the most significant taxes for new property owners is the Israeli purchase tax. This tax applies to all real estate transactions and understanding it is crucial for making informed purchase decisions. We are proud to present our Israeli purchase tax calculator in English to simplify your calculations.

Israeli Acquisition Tax Calculator

Israeli Purchase Tax Calculator

Important Notice: This estimate is based on tax brackets known as of January 2025 and is provided for informational purposes only. Tax rates and brackets may change. Consultation with a professional (lawyer, advisor) is mandatory before any transaction. The rules for new immigrants are specific and this simulation is simplified.
`; reportWindow.document.open(); reportWindow.document.write(reportHTML); reportWindow.document.close(); } // Event listeners propertyValueInput.addEventListener('input', () => { formatPropertyValueInput(); calculateTax(); }); propertyValueInput.addEventListener('keyup', formatPropertyValueInput); propertyValueInput.addEventListener('blur', formatPropertyValueInput); buyerTypeSelect.addEventListener('change', handleBuyerTypeChange); document.querySelectorAll('input[name="aliyahDate"]').forEach(radio => { radio.addEventListener('change', handleAliyahDateChange); }); document.querySelectorAll('input[name="taxRegime"]').forEach(radio => { radio.addEventListener('change', calculateTax); }); reportButton.addEventListener('click', generateReport); // Initial calculation calculateTax();

What is Israeli Purchase Tax?

The Israeli purchase tax (מס רכישה) is a one-time tax levied on all real estate purchases in Israel. This tax is paid to the government upon completion of the property transaction. The amount of purchase tax you pay depends on various factors, including:

  • Property Type: Different tax rates apply to residential and non-residential properties. Residential properties are further categorized into primary residences and additional properties, with varying tax rates.
  • Property Value: The purchase tax is calculated based on the property’s market value at the time of purchase. This value includes VAT if buying a new property from a developer.
  • Buyer Status: Certain demographics, such as first-time homebuyers and people with disabilities, may be eligible for tax reductions or exemptions

 

A little more about tax in Israel

The Israeli tax law is complex and is full of allowances, deductions and tax credit opportunities. As a tax payer, it’s your responsibility to ensure that you don’t pay more tax than you are legally required to.
Israeli tax on rental income

Ask an accountant

Boruch Levenson
Boruch Levenson – CPA

A native English speaker qualified in both Israel and the UK, Boruch cares for  the English speaking clients.

If you’ve got questions, don’t hesitate to reach out.

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The information provided in this article is intended for general informational purposes only and should not be considered a substitute for personalized professional tax advice. Tax laws and regulations can be complex and vary depending on individual circumstances. We strongly recommend consulting with a qualified tax advisor to discuss your specific situation and ensure compliance with all applicable rules.

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Our firm specializes in Israeli accounting and taxation, our team of English speaking accountants have extensive expertise in the benefits granted to Olim Chadashim and their tax optimization.

Our advisors in Tel Aviv

Cabinet Expert comptable Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Telephone: 03-9446635
Fax: 03-9494682
Email: accounts@cpa-dray.com

Our advisors in Jerusalem

Cabinet Expert comptable Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Telephone: 02 631 9000
Fax: 02 631 9005
Email: accoutns@cpa-dray.com