What prompted the realtors in Israel?

A realtor can legally represent buyers or sellers or both in propery transactions since 1996. Since then realtors in Israel are required by law to be licensed by the ministry of justice. 

The Jerusalems member in Chambers of Real Estate Brokers established rules of conduct and ethical behavior. A good and honest broker belongs Bureau.

 

Which real estate broker do I need?

1. A realtor that will maintain open and fluid communication with you.

2. A realtor that will guide you through each and every step in the process of realizing your real estate           needs and enable you to make an informed decision that is right for you.

3. A realtor that will Exploit his experience, knowledge and contacts to spare you trial-and-error and save

    you time and money.

4. A realtor that will be reliable and loyal to you and take care of your needs fairly.
4. A realtor that will help you select a lawyer who specializes in real estate.

5. A realtor that will Explore your financing options and help you to select a mortgage bank.

 

Brokers fee?

The amount used in Israel to pay for the brokers fee is 2% of the inclusive price of the propety, payble by each side of the transaction (both seller and buyer).

18% V.A.T tax will also be added legaly. 

 

The full payment of the broker's fee is due upon the signing of a binding agreement to sell or buy the property.

 

Acuisition Tax (Mas Rechisha)?

The marginal rate of Acquisition tax is 5% of the total purchase price and it is imposed on the purchaser of the property. Nevertheless, there is a different rate that applies on purchase of residential homes in Israel, as follows:

Singular home – for an individual purchasing his first and only home in Israel:

Amount	Tax Rate
Up to: 1,420,000 Shekel(USD 370,000 / £ 230,000)	0%
From - 1,420,000 to 1,685,000 Shekel(USD 370,000 / £ 230,000toUSD 435,000 / £ 270,000)	3.5%
Over – 1,685,000 Shekel(USD 435,000 / £ 270,000)	5%

Additional home – an individual in possession of a home purchasing his next home in Israel:

Amount	Tax Rate
Up to - 1,050,000 Shekel(USD 270,000 / £ 170,000)	5%
From - 1,050,000 to3,160,000 Shekel(USD 270,000 / £ 170,000toUSD 820,000 / £ 510,000)	6%
Over – 3,160,000 Shekel(USD 820,000 / £ 510,000)	7%

In addition to the easy tax rate on the first home you purchase in Israel; in a case of an exchange where one purchases a second home with the intention to sell his original home, there is a time period of 24 months after the purchase, in which one may sell his first home and pay purchase tax on the second home by the reduced rate of a single home. 

Alongside the general tax concessions described above, there are particular tax reliefs that apply in cases such as a gift transfer amongst relatives, where the receiver will be required to a third of the usual tax rate.

Another tax relief is in a case of purchase by an "Oleh" (an individual requesting resident by virtue of the statute of return) in which the tax rate will be:

Amount	Tax Rate
Up to – 1,460,000 Shekel(USD 430,000 / £ 265,000)	0.5%
1,460,000 Shekel Over –(USD 430,000 / £ 265,000)	5%

 

Please note that the tax brackets change in accord with the cost of living index and the rate of the US dollar. However they generally remain close to the US dollar amounts shown above.

The information contained on this page is a general guide.  Prospective buyers must obtain specific legal and professional advice from qualified Israeli legal counsel - real estate lawyer and/or tax advisors. 

Real Estate Lawyer?

A real estate lawyer will spare you trial-and-error and save you time and money. The lawyers role is to Educate you about matters unique to Israel, legal aspects of each step in the process of making a real estate transaction.

 

Outline the local real estate tax laws as they apply to you so you can select the most advantageous legal way to purchase or sell your real property & to Inform you of the type and amount of the taxes you will be required to pay in addition to the property price, professional, broker and lawyer fees.

Examine all legal documents and all legal requirements associated with your real estate transaction.

The customary lawyer's fee is between 0.5%-1.5% depending upon the lawyer and the complexity of the transaction.

 

I have established connections with the finest real estate lawyers.

 

Financing

The Israeli mortgage market offers a wide range of loan paths with various terms and conditions - Linkage to the dollar or the shekel, fixed interest or variable interest for a period of up to 30 years. Funding can be raised for as much as 90% of the total property value.

 

I'm very well connected with the best mortgage banks in Israel such as: Tefahot, Bank of Jerusalem, Leumi & Hapoalim.

 

Terminology

* MINHAL Mekarkeey Israel - Israel Lands Administration, ILA

* Tabu - Land registry office

* Mas Rechisha - Acuisition tax

* Maam - V.A.T (value added tax)

* Mas Shevach - Capital gains tax on real estate

* Heitel Hasbacha - Property betterment tax

* Mas Mechira - Sales tax

* Metavech - Real-estate agent

* Biladiut - Exclusivity

* Arnona - City Taxes

* Va'ad Bait - House committee, building committee

* Private property - Property belonging to Israel's Lands Administration, which is leased to the buyers and

   generations following for up to 98 years.

* Church property - property belonging to the church with is leased to buyers and generations following

   for various periods of time according to the specific lease.