There you go, enjoy:

🏠 When Buying Property

1. Purchase Tax (Mas Rechisha)

Paid by the buyer to the state.

• First home: Reduced rates; partial or full exemption up to ~₪1.9 million.

• Second home or investment: 8%+ on full amount.

• Land purchase: Usually 6%.

⸻

🏘️ When Selling Property

2. Capital Gains Tax (Mas Shevach)

Paid by the seller on the profit from the sale (difference between purchase and sale price).

• Exemptions may apply for a single residential apartment held for 18+ months.

• Standard tax: 25% on real gains (after indexation and deductions).

⸻

📅 Ongoing/Annual Taxes

3. Property Tax (Arnona)

Paid to the local municipality.

• Based on size (m²), location, and property use.

• Varies between cities.

4. Betterment Levy (Hetel Hashbacha)

Paid when property value increases due to a zoning change or added building rights.

• Usually 50% of the increased value.

⸻

🧱 Land (Vacant Plots)

• Purchase Tax: 6%

• Capital Gains Tax: 25% on sale profits

• Betterment Levy: On zoning upgrades

• Annual Lease Fees: If land is owned by Israel Land Authority (ILA/RMI)

⸻

Example:

You buy land from the state for ₪1.5M:

• Pay ₪90,000 purchase tax

• Pay one-time lease fee to the ILA

• Pay low arnona (for vacant land)

• Later, if zoning changes or you sell, you may owe betterment levy or capital gains tax