Real Estate Taxation
Proper Planning Before and After the Transaction
Real estate transactions involve significant payments — land appreciation tax, purchase tax, and more. The difference between proper tax planning and the absence of planning can amount to tens and even hundreds of thousands of shekels. We accompany buyers and sellers of properties at all stages of the transaction — from initial consultation before signing, through calculation of the assessment, to handling tax refunds after the transaction is completed.
Our Advantage
Tax savings through optimal utilization of every exemption, relief, and allowable deduction.
Certainty before the decision — knowing the numbers before signing.
Professional handling before the authorities — full representation before the Tax Authority.
Special Expertise: Land Appreciation Tax Refunds
Land appreciation tax is one of the highest taxes in real estate transactions, but in many cases it is overpaid. We specialize in checking eligibility for land appreciation tax refunds after selling a property, through in-depth analysis of personal data, income, and the transaction — with the aim of maximizing rights and returning money paid beyond what was required.
When Is There a Chance of a Land Appreciation Tax Refund?
If any of the following situations are relevant to you — there is a high chance of a refund:
You sold an apartment and paid land appreciation tax: It is worth checking whether the calculation that was made was complete and accurate.
Losses or low income in the relevant years: These may affect tax liability and allow for a refund.
Unused exemptions or reliefs: Single apartment exemption, land appreciation tax spreading, missed deductions.
Sole apartment: Unique reliefs exist that are not always correctly applied in the transaction.
You paid tax on building rights: A situation where tax may have been calculated on components that were not subject to it.
Expenses not taken into account: Renovations, legal fees, brokerage commissions — all of these may reduce the taxable appreciation.
Age 60 and above: Entitlements to unique reliefs that are not always automatically received in the transaction.
Disability, work accident victims, loss of earning capacity: Special tax benefits for those with recognized disabilities and medical conditions.
How Much Money Can Be Received?
Land appreciation tax refunds can reach tens of thousands of shekels, and in many cases hundreds of thousands of shekels and above. We only handle cases with real potential for a significant refund — and assess the likelihood before beginning the process.
Why Do Land Appreciation Tax Refunds Arise in the First Place?
Most land appreciation tax refunds arise not due to negligence, but due to the complexity of the system. The common reasons are:
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Calculation based on partial data: The assessment was submitted without all allowable deductible expenses, such as renovation costs, brokerage fees, and legal fees.
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Non-utilization of land appreciation tax spreading: A mechanism that allows the appreciation to be spread over several years to save on tax — and is not always offered to the taxpayer.
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Unused tax credits: Personal tax credits to which the taxpayer is entitled are not always applied to the land appreciation tax calculation.
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Errors in the self-assessment: Independent filing without in-depth knowledge of real estate taxation sometimes leads to overpayment that can be refunded.
Why Not Do It Alone?
Superficial checks or incorrect filing can miss tens of thousands of shekels, invite unnecessary scrutiny from the authorities, and lead to a worse outcome. This is where professional work sets itself apart from a superficial review.
Our office has deep, long-standing expertise in land appreciation tax and real estate taxation — including teaching the subject. We have extensive experience handling complex cases and advocate an approach based on maximizing rights, not just technical calculation. Every case receives thorough and personal examination.
Frequently Asked Questions – Real Estate Taxation in Israel
Land appreciation tax is a tax on the profit generated from the sale of real estate — the difference between the sale price and the adjusted purchase price. It is paid by the seller after the transaction is completed and currently stands at 25% of the real appreciation. Partial and full exemptions exist that can significantly reduce the tax.
What is purchase tax and who pays it?
Purchase tax is a tax paid by the buyer of the property, calculated according to the value of the transaction. Tax rates differ according to the purpose of the purchase (sole apartment, additional apartment, commercial property) and the identity of the buyer (new immigrant, person with disability, and more). Professional advice before the purchase can save significant sums.
What is the land appreciation tax exemption for a sole apartment?
Someone selling a qualifying residential apartment that is their sole apartment may be exempt from land appreciation tax — but the exemption is not automatic and depends on meeting several conditions: duration of ownership, the nature of the apartment, and the frequency of previous sales. Errors in assessing eligibility for the exemption are one of the most common causes of overpayment.
What is land appreciation tax spreading and how does it save money?
Land appreciation tax spreading allows the appreciation to be spread over up to four tax years — instead of calculating it all in the year of sale. This makes it possible to utilize lower tax brackets and tax credits, and to reduce the overall tax. It is a legal mechanism that is frequently not offered to taxpayers and serves as a source of refunds.
How long can a land appreciation tax refund be claimed after the transaction?
An assessment correction and reassessment can be requested after payment of land appreciation tax, generally up to four years from the date of the assessment. Therefore, even someone who sold a property several years ago may still be entitled to a refund — it is worth checking without delay.
Who Is the Service Suitable For?
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Sellers of apartments and properties
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Real estate buyers
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Those who paid land appreciation tax in recent years
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Owners of a sole apartment
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New immigrants purchasing a property
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Those who received a property through inheritance
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Age 60 and above
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Holders of recognized disabilities
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Real estate investors
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Those planning a future transaction.