Ido Shacham - Real Estate Tax Solutions

If you’re thinking of selling property located in Israel, it’s important to be aware of the processes and potential pitfalls for sellers. There’s much to consider:

• Capital gains taxes
• Payment schedules
• Israel Land Authority fees
• Potential illegal building issues
• Property issues
• Betterment taxes

As soon as you have identified a potential buyer for your property (if not beforehand), it is advisable to consult with a real estate lawyer to ensure the contract meets your best interests.

My lecture on property taxes for the sale of real estate in which the property is owned by a minor:

Capital gains tax: for residential property sales, such as a house or apartment, capital gains taxes may apply. Your lawyer will help determine whether this tax is due and how much it will be. Foreign residents are ineligible for exemptions – even if they are Israeli citizens – though some discounts may be available. For sellers with multiple properties, extensive tax planning is necessary to maximize all discounts.

If the property is sold at a profit, expenses associated with preparing the property for sale may be applied to decrease the amount of tax due. Always save receipts from all transactions and renovations. Your lawyer will work with you to minimize the tax due and make the capital gains tax process less stressful.

Betterment taxes: These taxes are generally paid by the seller if zoning laws for a specific neighborhood were changed and the owners gained extra building rights. It is best to find this out prior to selling the property.

Here’s a tip for couples with separate assets about how to get not one, but two, tax breaks: