Ido Shacham - Real Estate Tax Solutions

This law provides tax incentives for agricultural investors in Israel. The law also serves as a significant tax planning tool.

To qualify for benefits under the law, investors must be an agricultural company registered in Israel with export capabilities to be competitive internationally (biotechnology and nanotechnology companies are exempted from the export requirement).

Qualifying companies fit into the following agricultural categories:

• Industrial plants
• Holding companies
• Agriculture
• Tourism
• Non-profit organization – “Amutot”
• Local committees
• Reserve funds
• Water associations
• Research & Development enterprises
• Kibbutzim

For Kibbutzim, our primary services include analyzing financial statements, in a process similar to those in structured corporations. This includes:

• Audit services
• Tax services
• Legal consulting services

The law divides investment priority into two primary areas:

• Priority Areas:  including the Galilee in the north, the Negev in the south, and Jerusalem (for research).
• Other Areas: including all other areas of the country not included in the Priority Area.

Real Estate considerations: when purchasing residential land from agricultural developments, like moshavim, it’s important to know that these purchases can be impacted by the Agricultural Investment Encouragement Laws and any such real estate transactions need thorough legal consideration prior to completion. Furthermore, it’s important to note that property purchasers may own the property itself – including property owners may have built themselves – however, they legally only hold a long-term lease for the plot of land and any tenants to the property must be first approved by the moshav in question before they are permitted to live on the land.