How to understand the taxes that apply to buying and selling properties in the city, and how to save thousands of shekels in a real estate transaction?
- Purchase tax – applies to the buyer of a property, and the percentages vary depending on the type of property and whether it is a first property or an additional property. The purchase of commercial real estate, for example, will be taxed at 6% of the transaction value without tax brackets.
- Capital Gains Tax – A tax on capital gains from the sale of real estate. The profit (or appreciation) is calculated as the difference between the purchase price and the sale price, less known expenses such as renovations and various levies. There are exemptions from the capital gains tax in certain cases, such as owning a single apartment over time or living in the property for more than a certain period.
- Tax refunds – In cases where capital gains tax was paid on certain transactions, a tax refund application can be filed, for example when tax write-offs that were supposed to reduce the final tax liability were included in the expenses.
- Using available information – It is recommended to check previous transactions in Ashkelon in the Tax Authority's database, which includes information on similar transactions in the city by property type and location, which helps to understand the local market and average real estate prices.
Understanding real estate taxes in Ashkelon is important for making the right decisions, and proper management of taxation can help reduce transaction costs.
Wondering how much tax you will pay on your apartment or office?
Danhandlen is here to take the headache out of you – professional advice, tax review, and personal guidance in the transaction.
Contact us now and let's start looking together at how to save thousands of shekels.
Send us a message here