8/27/2024–|Last update: 8/27/202411:05 AM (Makkah Time)
Israel has expanded tax exemptions on home purchases for new immigrants starting this month, the Israeli newspaper Globes reported, in a bid to attract new immigrants.
According to the newspaper, the arrangement that was designed to help new immigrants in the past was not ideal, as the old regulation (Regulation 12) stipulated a 0.5% tax on the purchase of “real estate rights” up to a value of 2 million shekels ($546,142), and this tax increases to 5% if the value of the property exceeds this amount.
New modification
With the new amendment to the regulations, taxes on the purchase of new real estate for new immigrants to Israel are as follows:
- No tax on a home worth up to NIS 1.97 million ($537,950).
- A 0.5% tax is imposed on property valued between NIS 1.97 million ($537,950) and NIS 6 million ($1.65 million).
- An 8% tax is imposed on the purchase of a home valued between NIS 6.05 million ($1.65 million) and NIS 19.57 million ($5.34 million).
- Values are updated annually.
According to the newspaper, the new system does not apply if the value of the home exceeds about 20 million shekels ($5.46 million), and in such a case, the old system applies, as Israel does not encourage the purchase of luxury homes.
These benefits apply if the immigrant purchases the home within one year before the date of immigration to Israel and 7 years after that. This benefit also applies even if the immigrant does not use the home, which allows him to purchase an investment property using the new system, and an additional property to live in using the old system.
Latest statistics
It is noteworthy that the process of immigration to Israel decreased by 70% in the first months of the war, as 2,000 Jews arrived between October 7 and November 29, 2023, compared to 4,500 who were arriving monthly on that date, according to the Israeli Immigration Authority.
Immigration from Israel abroad has risen again this year, but the Israeli economic newspaper The Marker says that the Israeli Central Bureau of Statistics does not reveal the true numbers of reverse migration.
By June 2024, The Times of Israel reported that half a million Israelis had already left the occupying state and did not return in the first six months of the war, and it is not known whether this was a temporary decision or whether it will turn into a permanent migration.
Channel 12 confirmed in its coverage that evidence indicates that most of those who fled the occupying state from November 2023 to March 2024 do not intend to return again, and that they have already begun to completely move their lives outside the country.
