Costs and Fees (valid from January.16.2021)
When Leasing a property the following are the costs that must be taken into account :
Real Estate Broker’s Commission (Dmei Tivuch)
On leasing property brokers customarily charge as follows
1.For a period of one year or more – one month rent.
2.For a period less than one year – 10% of the total rent (minimum charge $150)
Value Added Tax currently 17% is added to any commission due.
Lawyer’s Fees
Most lawyers charge the equivalent of two weeks rent.
Value Added Tax is added to any commission due.
When Buying a property the following are the costs that must be taken into account:
Real Estate Broker’s Commission
On the purchase or sale of property, brokers customarily charge 2% of the inclusive price of the property.
Value Added Tax is added to any commission due.
Lawyer’s Fees
Most lawyers charge 1% + VAT. (equivalent to 1.17%)
Purchase Tax (Mas Rechisha)
The Purchase Tax in respect of residential dwellings is an incremental (progressive) tax.
In order to calculate the tax, the total purchase price of the dwelling is divided into several levels or brackets and
a different rate of tax is applied to each bracket, as follows:
Bracket 1 is subject to tax at the rate of 0.00%-0.50%
Bracket 2 is subject to tax at the rate of 3.50%
Bracket 3 is subject to tax at the rate of 5.00%
Bracket 4 is subject to tax at the rate of 8.00%
Bracket 5 is subject to tax at the rate of 10.00%
This applies to a Local buyer who does not own another residence in Israel or more then 1/3 parts of a property.
The range of each bracket is adjusted every 3 months in shekel terms in accord with changes to the Israeli Consumer Price Index
and at present is roughly equivalent to the following:
Bracket 1 (0.00%) – First 1,747,865 ns
Bracket 2 (3.50%) – Next 1,747,865 – 2,073,190 ns
Bracket 3 (5.00%) – Next 2,073,190 – 5,348,565 ns
Bracket 4 (8.00%) – Next 5,348,565 – 17,828,555 ns
Bracket 5 (10.00%) – Next 17,828,555 ns and higher
A non – Israeli resident and / or Israeli resident that is buying a second residence will be taxed as followed .
Bracket 1 (5.00%) Up to 1,294,770 ns
Bracket 2 (6.00%) – Next 1,294,770 – 3,884,295 ns
Bracket 3 (7.00%) – Next 3,884,295 – 5,348,565 ns
Bracket 4 (8.00%) – Next 5,348,565 – 17,828,555 ns
Bracket 5 (10.00%) – Next 17,828,555 ns and higher
New Olim/Immigrants
Bracket 1 (0.50%) – First 1,842,155 ns
Bracket 2 (5.00%) – Next 1,842,155 and higher
Here you can download the formal protocol as published
in Hebrew CLICK
Tax simulator :
Click here for Tax calculator
