Client updates / Real Estate

Israeli economic newspapers have recently published headlines claiming that “the Supreme Court dismissed a petition for exemptions from paying compensation for delays in apartment deliveries due to the war” and that “the war does not constitute a justified reason for delaying apartment deliveries.”

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).

In May 2025, the district court issued a precedent-setting ruling regarding a local planning and building committee’s authority to demand that accessible parking spaces remain part of the common property and not be assigned to apartments in a new building.

The Israel Tax Authority (ITA) recently published an addendum to the 1987 circular with the goal of minimizing disputes with sellers of residential apartments.

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.

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.