Complete Guide to Israeli Purchase Tax (Mas Rechisha)
Everything you need to know about minimizing Israeli purchase tax, including exemptions, rates, and optimization strategies from Israel's leading tax experts.
Get Purchase Tax PlanningUnderstanding Israeli Purchase Tax (Mas Rechisha)
Israeli purchase tax is one of the most significant costs in real estate transactions. Proper planning can save tens of thousands of shekels.
Israeli purchase tax (mas rechisha) is a mandatory tax paid when purchasing real estate in Israel. The tax rate varies significantly based on factors including buyer status, property value, intended use, and timing of purchase. Understanding these factors is crucial for minimizing your tax liability.
Standard Purchase Tax Rates
- • Up to ₪1.8M: 0.5% - 3.5%
- • ₪1.8M - ₪5M: 5% - 8%
- • Above ₪5M: 10%
- • Investment properties: Higher rates apply
Potential Exemptions
- • New immigrant (Olim) exemptions
- • First-time buyer benefits
- • Young couple reductions
- • Disabled person exemptions
Aliyah Purchase Tax Benefits
New immigrants (Olim Hadashim) receive significant purchase tax advantages when buying their first property in Israel.
Olim Purchase Tax Exemption Details
Eligibility Requirements:
- • Must be within 7 years of Aliyah
- • First property purchase in Israel
- • Property must be for personal residence
- • Maximum property value limits apply
- • Must maintain Israeli residency
Benefits Available:
- • Up to 100% purchase tax exemption
- • Exemption on properties up to ₪1.68M
- • Partial exemption for higher-value properties
- • Additional benefits for young Olim couples
- • Exemption transferable to spouse
Pro Tip: Proper timing and structuring of your property purchase can maximize these benefits. Our experts help ensure you qualify for maximum exemptions.
Purchase Tax Optimization Strategies
Advanced strategies our tax experts use to minimize purchase tax liability for our clients.
Timing Optimization
Strategic timing of purchase relative to Aliyah, marital status changes, and other qualifying events can significantly reduce tax liability.
Corporate Structures
In certain cases, corporate ownership can provide tax advantages, especially for investment properties or high-value purchases.
Multi-Property Planning
For clients purchasing multiple properties, we structure transactions to maximize exemptions and minimize overall tax burden.
Israeli Purchase Tax FAQ
Common questions about mas rechisha and how to minimize your tax liability.
Ready to Minimize Your Israeli Purchase Tax?
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