First, the Good News
For Jews planning on Aliyah, new immigrants stand to save a sizable amount of money if and when they buy a home in Israel. In fact, the real estate legislation could consider buyers as residents of Israel, to facilitate the process. In fact, as much as two years from the time of purchase until they arrive, can give them a serious break on “purchase tax” mas rechisha, as well as other benefits.
What if I Remain Abroad?
Whether remaining abroad and investing in Israeli real estate with no plans to move to Israel, or returning after many years out of the country, reading and understanding everything about the tax laws that pertain to real estate in Israel could save you tens of thousands of shekels, at the very least.
What About Purchase Tax?
Although purchase tax, which starts at 5%, applies to residents who buy homes at a price of up to around 1.75 million NIS (shkalim), those living abroad, who intend to move to Israel within a short amount of time after their purchase and live on the premises, can be eligible for the same tax breaks as Israelis who already live in the country. The same benefits apply to returning Israelis.
Who is a Resident?
To qualify as a resident of Israel, one would have to meet certain criteria. One’s eligibility and duties (taxes) should be carefully checked out by a fully licensed real estate lawyer and preferably, one who can explain all the client needs to know, in a language the customer can understand. David Page, whose offices are in Jerusalem, Israel, is the best counselor for the job.
Now For Some Other News
Buying or selling property from anywhere in the world, in any foreign country, will involve real estate taxes. In order to know for certain what you might have to pay and whether you meet any or all requirements for exemptions from levies, you will want to find a lawyer well versed, experienced, knowledgeable and savvy, who can explain it so that you fully understand all that is involved. The law firm of David Page, located in Jerusalem, Israel, can meet any requirements you might have.
Israel’s laws change often in comparison to the United States, for example. Before taking any step whatsoever, you must have a lawyer on which you can rely in your corner. New tax laws that can apply to you or your heirs, necessitate sound advice on which you can rely and that will give you peace of mind.
Israel’s government clerks and officials will not consider anything beyond what is written, signed, sealed and delivered. Even seasoned Israelis need to consult with experts and all the more so, if you reside outside of Israel.
What About Buying a Property to Rent Out to Tenants?
Purchasing real estate as an investment, to rent out to tenants is a whole other category and different taxes and regulations will apply to you. Do not, ever, tread these waters alone.