Captial Gains Tax in Israel
Capital Gains Tax (known as Mas Shevach, in Israel) is paid by a property owner that is selling a private home, apartment, land or commercial property (i.e., a store or office). The capital gains is a tax paid for the profit made on the sale of any real estate or property in Israel. Property owners that sell their home, land or commercial property in Israel are not exempt from paying the capital gains tax, although in some cases, property owners may be exempted from paying the Capital gains tax on apartments. This is conditional exemption which stipulates that if an apartment has been used for non-commercial, strictly residential purposes, the property owner may be exempt from paying a capital gains tax if:
1) the property owner owns more than one apartment and the apartment for sale was not sold or transferred over the last four years
2) the apartment being sold is the only apartment owned by the seller and if the apartment was not sold or transferred over the last 18 months
An experienced Israel Real Estate attorney will be able to clarify the capital gains tax issue for any property in Israel.
