Nitsan Bar-Ilan Law Firm

Land Taxation

The Land Taxation (Appreciation and Purchase) Law, 1963, previously named the Land Appreciation Tax Law, came into effect on 22.8.1963.

  • The law was amended many times over the years, and it was adjusted to economic changes, to changes in the structure of transaction, and to developments in the real estate market.
  • Under the law, appreciation tax is imposed upon a seller of a right in land and upon a person carrying out a real estate association act (as defined in the law), and purchase tax is imposed upon the buyer.
  • There are 10 regional land taxation offices across Israel, who are charged with the implementation of the provisions of the law, the work procedures and the implementation directives within their jurisdiction.
  • We will review the provisions of the law and the work procedures concerning the sale/purchase of a right in land, the obligations of the seller and buyer in all matters concerning the submission of a declaration and payment of tax, and their right to reliefs and exemptions, and we will provide assistance to any person who intends to sell or purchase a right in land or to any person who had already effected a transaction and wishes to examine the assessment with respect to the transaction.

For your convenience, this is the link to the land taxation guide, available on the Israel Government's Tax Authority’s website:

http://taxes.gov.il/RealEstateTaxation/Documents/KnowRightinLand2012.pdf