Israel Cuts Tax on Investment in Residential Real Estate

Knesset Finance Committee approves Finance Ministry proposal to reduce taxes on residential real estate purchases for buyers who already own homes.

• Taxes on purchases by these buyers had been raised in a 2015 temporary regulation to discourage investors in a bid to halt spiraling prices; the regulation was scheduled to expire at the end of the year
• Decision reduces initial tax bracket to 5% from 8% immediately
• Finance Minister Israel Katz says building sector is an important growth engine; reduction in purchase tax aims to boost activity in building sector and help economy weather crisis brought on by coronavirus pandemic ...