Clients updates / Real Estate

A recent amendment to the Planning and Building Law came into effect, introducing changes to the appeal process for betterment levies.

The Israel Tax Authority (ITA) published a new directive a few days ago that updates the rules for persons classified as disabled, blind, or injured during Israel’s various wars, and families of fallen soldiers.

The district court’s position in its recent ruling in the Ahuzat Allenby Ltd. case has significant implications for investors, developers and private individuals who purchase apartment buildings slated for demolition and are looking to change the zoning of the purchased properties.

The amended regulations, expected to come into effect in August 2024, improve the tax benefit track for new immigrants who are purchasing a first residence and are more lenient than the purchase tax track to which every Israeli resident is entitled when purchasing a first residence.

The Israeli Supreme Court has ruled that NPOs are entitled to receive an exemption from real estate betterment levies, provided they use the proceeds from the sale of such real estate for a public purpose specified in the law.

The Tel Aviv Land Registry’s Supervisor rejected a claim for the removal of infrastructure for an electric vehicle charging station installed in a parking space attached to an apartment in a condominium.

An important ruling handed down by the Israeli Supreme Court clarifies how specific rights holders acquire additional or future building rights in real estate assets.

The Israeli Supreme Court’s ruling contains strict determinations regarding simulated contracts whose sole purpose is to defraud the tax authorities and the banking system. Inter alia, the Supreme Court addressed an ongoing judicial debate about the classification of simulated contracts.

A new Supreme Court ruling reverses a district court decision, while imposing heightened liability and an enhanced duty to disclose information on “on paper” apartment sellers.

The Israel Tax Authority and the Real Estate Tax Appeals Committee disagree on the entitlement to the maximum exemption from land appreciation tax.

An apartment owner in a condominium building installed a private electric charging station in her parking space without the consent of the other apartment owners. This is what the supervisor ruled.

The latest amendment includes a limit on linkage to the construction input index and revises contractors’ compensation rates for delays in apartment deliveries

The importance of pinui-binui (vacate-and-build) projects for resolving the housing shortage in Israel has spurred new legislation to resolve the problem of  recalcitrant tenants, to define what constitutes a majority of tenants in such projects, and to regulate projects in neighborhoods comprised of detached houses.

The Israeli Supreme Court rejected the Israel Tax Authority’s position regarding the inclusion of development expenses in property values for tax purposes.

Earlier this month, the Israeli Ministry of Finance approved the outline for a hike to the purchase tax imposed on real estate investors, once again, to tax brackets of 8% and 10%. The Ministry of Finance has since updated that the purchase tax hike will take effect on Sunday, November 28. The ministry’s goal with this move is to “dissuade” investors from purchasing investment apartments and lower the demands in the residential housing market.

After years of expectations, the government has approved the legislative amendments needed to promote “Urban Renewal” projects in Israel. While everyone is talking about the amendment lowering the threshold of consent for apartment owners to 66%, a lot more has also changed. All of the amendments, both major and minor, are important.

Up until now, the Israel Tax Authority interpreted the Real Estate Taxation Law so that spouses who signed a prenuptial agreement and maintained separate property were considered a single family unit for the purposes of real estate tax. 

The Tel Aviv Municipality sent the Ramat Aviv Mall a municipal property tax bill for its common areas. The mall’s management argued that shop tenants must pay municipal property tax payments for these areas, under their lease agreements with the mall.

An Israeli court recently rendered an interesting ruling on the impact of COVID-19. The case in question involved the lease agreement for the operation of a hotel. The lease agreement, executed in February 2020, provided payment of rental fees for the month of March, but payment for the months of April and May had not yet been arranged.  

In urban renewal projects, residents or owner’s rights holders select the company with whom they are willing to embark upon this long journey, based on relationship of trust and competence. The trust required leads both parties to execute a binding agreement. Understandably, residents expect the company which whom they have contracted with to remain unchanged and not for those rights not to be transferred to other parties.