Lower Purchase Taxes for New Immigrants

During July 2024 the Knesset Finance Committee has approved an amendment to the real estate taxation regulations, providing benefits for new immigrants purchasing property in Israel. Under the new regulations, new immigrants will benefit from a reduced purchase tax rate of 0.5% instead of the standard 3.5%-5% on one residential property valued up to NIS 6 million.

According to the amendment, new immigrants, like all Israeli citizens, will be exempt from purchase tax on the first NIS 1.98 million of any primary home (effective from 2024). For amounts exceeding NIS 1.98 million and up to NIS 6 million (according to the 2024 index), new immigrants will pay a purchase tax of 0.5%. In contrast, Israeli citizens will incur a 3.5% tax on the portion between NIS 1.98 million and NIS 2.34 million, and a 5% tax on the portion between NIS 2.34 million and NIS 6 million. For amounts above NIS 6 million, new immigrants will face an 8% tax, the same as all Israelis, and a 10% tax on amounts exceeding NIS 20 million.

Finance Minister Bezalel Smotrich commented, "The State of Israel is committed to supporting immigrants, especially at a time when we need to facilitate their integration and welcome them back home."

Minister of Aliyah and Integration Ofir Sofer also welcomed the approval, stating, "This is excellent news that will assist many immigrants in settling in Israel and encourage further interest in making the decision to immigrate. Since the start of the war, immigration to Israel has continued to grow."