Gov't raises purchase tax thresholds for homebuyers

Israel's Tax Authority has updated the purchase tax thresholds for buying homes and farms. From January 16 2010 buyers of additional homes in Israel will benefit from significant purchase tax savings. The update is based on price rises according to the Central Bureau of Statistics Cost Price Index (CPI).

Homebuyers will now be exempt from purchase tax on the first NIS 1.085 million of a property instead of NIS 1.027 million. Buyers will pay 3.5% purchase tax from NIS 1.085 million up to NIS 1.525 million (instead of up to NIS 1.443 million). Above that figure will be subject to 5% purchase tax.

Buyers of a second or additional home for investment will pay 3.5% on the proice of a home up to NIS 923,000 instead of NIS 873,000. Above NIS 923,000 purchase tax will be 5%.

Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2010

Gov't raises purchase tax thresholds for homebuyers

The new tax brackets will offer significant savings for buyers.