Israel Tax Agency Posts Circular Clarifying Previous Income Tax Benefits Track for Residential Rental Buildings

The Israeli Tax Authority April 7 posted online Income Tax Circular No. 04/2025, clarifying the previous income tax benefit track for residential rental buildings under the Law for the Encouragement of Capital Investments. Topics covered include: 1) eligibility criteria for the benefits for owners of new rental buildings; 2) the increased rate of depreciation of 20 percent for an apartment in a new building for rent, with proportional depreciation for apartments rented out for part of the year; 3) the 20 percent and 11 percent tax rates for income from a new building for rental; 4) the 20 percent tax ...