As 2025 comes to a close and the new year begins, we have compiled the key legal developments affecting the Israeli business sector across multiple practice areas, together with practical recommendations for implementation ahead of corporate activity in 2026. The review is designed to provide an up-to-date overview and actionable guidance for informed legal planning in the year ahead.
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Insights & News / Maya Carmi Lubartovski
Canceling a Real Estate Transaction Due to the War
Aging Buildings Under Missile Threat: What Are Seniors Entitled to in Pinui-Binui Projects?
At a time when urban renewal is becoming an essential need, it is crucial to understand the rights and benefits available to senior citizens in pinui-binui (vacate and reconstruct) projects. Adv. Maya Carmi Lubartovski, a partner and head of the firm's Real Estate Tax Department, explains in a Maariv article the unique entitlements for seniors: tax benefits, the option to receive two apartments instead of one, relocation to alternative housing, and the ability to sell rights to the developer.
Landmark Ruling in Israel – Purchase Tax Rebates to Winners of Mehir LeMishtaken Tenders
If you participated in Mehir LaMishtaken tenders and paid purchase tax, we recommend promptly reviewing whether you may be eligible for a purchase tax rebate. We are at your service to perform a preliminary eligibility review based on the tender documents, lease contract, special conditions appendix, and construction contract.
Which Developers Are Entitled to a Refund of Land Development Expenses from the Israel Tax Authority?
A settlement was approved recently within the framework of two class actions, which may result in some taxpayers receiving considerable financial refunds, while specifically re-examining the taxation of additional development expenses. Those entitled to a refund must forward the Refund Documents to the class plaintiff’s attorney within 180 days of the settlement approval date. The ITA will transfer the refund due to each class member within 150 days of the date of receipt of the documents.
2025 Year-End Review: Israeli Real Estate Taxation
In 2025, Israeli real estate taxation was characterized by strict adherence to statutory requirements: reliefs, exemptions, and lower tax brackets were granted only when the conditions prescribed by law were met, within the defined deadlines, and with full proof of the relevant facts.
2025 Legal Year in Review: Key Business Updates and 2026 Outlook
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Tax
Landowners May Be Subject to Property Tax in Israel!
The recently published draft bill seeking to reinstate property tax could have a significant impact on dozens to hundreds of thousands of landowners in Israel. Although only a draft bill at this stage, it is advisable to understand the potential changes, whether they affect you, and how to prepare in advance to reduce exposures and avoid surprises.
Professional Training on Real Estate Taxation in Collaboration with Israel Bar Association
Adv. Maya Carmi Lubartovski, head of our firm's real estate taxation practice, together with Adv. Tali Yehoshua, and in collaboration with the Tel Aviv District of the Israel Bar Association, are leading a specialized professional training course. The course will feature leading experts, judges, and senior officials from the Israel Tax Authority, who will discuss latest developments, key rulings, and significant interpretations in the field of real estate taxation.
Our New Podcast Is Now Live on Spotify – Barnea on Business!
We are excited to launch our new podcast, where we translate complex legal issues into practical tools you can apply in the real world. In each episode, our firm’s partners analyze current and key topics in the business world, including corporate law, M&A, regulation and ESG, labor law, real estate, taxation, capital markets, and more, demonstrate how to put legal tools into action. This podcast is designed for anyone operating at the intersection of law and business and seeking hands-on knowledge and practical insights.
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Tax
Share Transfers Between Siblings Are Tax-Exempt - Even Indirect Gifts from Parents
A recent district court ruling broadened the interpretation of the statutory provisions governing exemptions from land appreciation tax and ruled that transfers of shares of a real estate association as a gift between siblings are exempt from capital gains tax even if the shares were not direct gifts from the parents but originated from land received as a gift from them. The court also prescribed several important procedural rules to improve the protection of taxpayers’ rights vis-à-vis the Israel Tax Authority (ITA).
The Building Was Destroyed – Now What? Urban Renewal and the Rights of Elderly Residents
Following the recent missile attacks from Iran, several old buildings collapsed across the country. Government ministers have announced plans to advance urban renewal initiatives for these affected structures. As the state works to develop a comprehensive strategy, we examined the unique rights of elderly residents in urban renewal projects, since, in many cases, senior citizens are the ones living in these aging buildings. A detailed guide on the subject by Adv. Maya Carmi, an expert in real estate taxation, was published on Ynet.
The New Institutional Long-Term Rental Track: Strong Potential – Limited Implementation
Launched in 2022, Israel’s new regulatory framework for institutional long-term residential rentals offers significant tax incentives for developers. However, despite its intended benefits, there has been a sharp decline in the number of applications submitted under this track. Adv. Maya Carmi Lubartovski of our firm provides an in-depth analysis of the program’s structure, the regulatory and practical barriers it faces, and why the model has yet to meet expectations.
Significant Tax Benefits for Owners of Long-Term Rental Buildings
Owners of buildings designated for long-term rentals are entitled to significant tax benefits that are being granted in order to encourage the construction of buildings that include residential apartments earmarked for long-term rentals.
Can You Cancel a Real Estate Sale Transaction and Obtain a Tax Refund or Is This a New Transaction Subject to Additional Tax?
Israeli tax ruling on the question: The Committee deliberated the North Mall appeal and ruled recently that a “partial cancellation” of a real estate sale transaction is, in fact, a new transaction subject to additional tax
Israel Bar Association Tax Conference: Advs. Harel Perlmutter and Maya Carmi
Advs. Harel Perlmutter and Maya Carmi Lubartovski from our firm participated in the Israel Bar Association's (Southern District) Tax Conference. The conference covered various aspects of taxation, including real estate tax, income tax, and VAT. Harel and Maya participated in a panel on trust taxation, discussing the practical application of trust taxation (income tax and real estate tax) and how it is actually carried out in practice.
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Tax
Recognition of Undocumented Construction Costs for Capital Gains Tax in Israel
The Israel Tax Authority (ITA) recently published an addendum to the 1987 circular with the goal of minimizing disputes with sellers of residential apartments.
January 2025: Legislative Amendments to Real Estate Taxation in Israel
The new year is already heralding significant tax innovations in Israel in general, and in real estate taxation in particular. Following are highlights of the legislative amendments that were approved by January 2025.
Israel Tax Authority Issues Executive Order allowing Double Purchase Tax Benefits for Certain Residential Buyers
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.
Extension of Purchase Tax for Investors - Interview with Maya Carmi
The Ministry of Finance intends to extend purchase tax for investors, currently set at 8%, as part of the Arrangements Law for 2025, which has led to strong opposition from contractors. Adv. Maya Carmi from our firm was interviewed by Yedioth Ahronoth and stated that the purpose of freezing the tax rate is to disincentivize investors from purchasing apartments, thereby increasing the supply of available apartments and reducing prices, which would allow young couples and people from lower socio-economic backgrounds to buy homes.
Taxing of Apartment Purchases in Buildings Slated for Demolition
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.
Tax Innovations in Israel in 2024
Over the past year, alongside handling the economic repercussions of the war and issuing financial assistance to war victims and to evacuees, the courts, the legislative authority and the Israel Tax Authority continued their efforts in the legislative arena and issued several significant tax rulings. Following are the most important innovations relating to income tax, real estate tax and VAT.
Real Estate Taxation: Tax Aspects in Realizing Real Estate Rights
Adv. Maya Carmi Lubartovski, head of our firm’s real estate taxation practice, participated in another episode of the ACC podcast series. The new episode covers the tax aspects of cash transactions, combination transactions, construction services transactions, the tax advantages and disadvantages of different transaction structures, and more.
Real Estate Taxation: Key Things to Know When Conducting a Real Estate Transaction in Israel
As an expert in the field of real estate taxation, our firm's Adv. Maya Carmi was a guest on the ACC podcast series, providing clarity on all aspects of real estate taxation. The first two podcasts, uploaded yesterday, focus on capital gains tax and purchase tax.
Israel: Improved Purchase Tax Benefit for New Immigrants
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.
Walla: Maya Carmi Lubartovski Discusses Important Details of Gifting an Apartment
No takebacks, receiving nothing in return, and a cooling-off period—gifting an apartment to a relative offers significant tax advantages. However, it is crucial to fully understand the consequences of this move for both the giver and the recipient of the gift.
Real Estate Taxation Updates: Maya Carmi's Interview with Bizportal
Maya Carmi Lubartovski, the head of our firm's real estate taxation practice, was interviewed by Bizportal about the Israel Tax Authority's planned updates in the real estate taxation field. Among other things, she discussed the consequences of higher purchase tax rates for second apartments and giving apartments as a gift.
Class Action: Depreciation from Apartment Purchase Value
An Israeli court ruled that the Israel Tax Authority overcharged apartment sellers who rented out their apartments under the tax-exempt track up until their sale, by a total of more than ILS 100 million. This ruling has major consequences, since the State treasury will be forced to refund the tax overcharges to the apartment sellers who are part of the relevant class. The Israel Tax Authority is expected to appeal the ruling.
What Are the Tax Aspects of Prenuptial Agreements in Israel?
Signing a prenuptial agreement has a critical impact not only on the division of property upon divorce, but also on the taxes a couple pays during marriage. It is important for couples to understand the economic advantages inherent in signing a prenuptial agreement and draw one up accordingly.