Core Concept
The real estate purchase tax in Israel, known as Mas Rechisha, is mandatory upon the acquisition of residential property. However, for certain categories of citizens, including individuals with a recognized disability and parents of children with disabilities, the state provides significant tax relief. This relief reduces the tax rate to 0.5% of the property's value up to a certain ceiling, allowing for savings of tens of thousands of shekels.
Who is Eligible?
To qualify for the relief, you must meet one of the following criteria:
- Individuals for whom Bituach Leumi (the National Insurance Institute) has established a permanent medical disability (נכות רפואית) of 100% or a special disability of 90% or higher.
- Individuals receiving an attendance allowance (שר"ם - שירותים מיוחדים) from Bituach Leumi.
- Individuals for whom the Ministry of Defense has established a disability rating of 50% or higher.
- Victims of Nazi persecution who receive an allowance from the Ministry of Finance.
- Parents receiving a disabled child allowance (גמלת ילד נכה) from Bituach Leumi.
Who is NOT eligible:
- Individuals purchasing property as an investment (not for personal residence).
- Individuals whose disability has not been officially certified by one of the authorized agencies.
Your Rights
The primary right is the payment of the purchase tax at a reduced rate of 0.5%. This rate applies to the portion of the apartment's value that does not exceed the legally established ceiling. The amount exceeding this ceiling is taxed at standard rates.
Important: The relief is granted for one residential apartment only.
| Condition | Tax Rate | Note |
|---|---|---|
Value up to [Specify current ceiling] | 0.5% | This is the primary component of the relief. |
Value exceeding [Specify current ceiling] | Standard rates | The tax rates on this portion depend on the total value of the property. |
Step-by-Step Guide
- Obtain official certification. Ensure you have a valid document confirming your disability or eligibility for the disabled child allowance from Bituach Leumi or the Ministry of Defense.
- Inform your attorney. Inform your attorney, who is handling the purchase transaction, of your eligibility for the tax relief. It is their responsibility to file the appropriate application.
- Completing the declaration. The attorney completes the real estate purchase declaration and indicates the claim for the purchase tax relief in the relevant section.
- Submitting documents. All necessary documents confirming eligibility for the relief are attached to the declaration. The submission is made online via the attorney's system to the Tax Authority (Rashut HaMisim).
- Paying the tax. Upon receipt and approval of your request, the Tax Authority will issue a tax bill at the reduced rate. Payment must be made within the specified deadlines.
List of Documents
Your attorney must attach the following documents to the declaration:
- Copy of identity card (Teudat Zehut) with its appendix (Sefach).
- Copy of the real estate purchase agreement.
- A current certificate from Bituach Leumi confirming the existence and degree of disability (אישור נכות) or receipt of the disabled child allowance.
- A special application form for the tax relief (the attorney must provide the current version).
Caveats
- Relief for one apartment: You may use this relief for one apartment only. If you sell it and purchase another, you may be able to use the relief again, subject to certain conditions.
- Deadlines: The application for relief must be submitted concurrently with the purchase declaration. Filing it retroactively is extremely difficult.
- Both spouses are eligible: If both spouses are eligible for the relief, it is still granted for one shared apartment and is not doubled.
- Selling the apartment: If you sell an apartment purchased with this relief before the legally stipulated period (typically several years), you may be required to pay the difference up to the full tax rate. It is imperative to consult with an attorney before selling.
Contacts and Links
Contact and link information has not been provided. It is recommended to check the official website of the Israel Tax Authority (רשות המיסים) for current information and forms. Your attorney handling the transaction also has access to all necessary resources.
Dictionary
- Мас Рехиша (מס רכישה): Real estate purchase tax.
- Нехут (נכות): Disability.
- Рашут ха-Мисим (רשות המיסים): The Israel Tax Authority.
- Битуах Леуми (ביטוח לאומי): The National Insurance Institute.
- Ишур Нехут (אישור נכות): Certificate/confirmation of disability.
- Гимлат Елед Нахе (גמלת ילד נכה): Disabled child allowance.
- Дират Мегурим (דירת מגורים): Residential apartment.