People with disabilities may be entitled, in accordance with the relevant conditions, to pay a reduced purchase tax of 0.5% when purchasing a home in which they will live.
- In some cases, as detailed below, applicants must appear before a National Insurance Institute Medical Committee in order to have benefit eligibility determined.
Who is Eligible?
- Those for whom the National Insurance Institute has established permanent incapacity to earn a living of at least 75%.
- Those for whom permanent medical disability has been established at 100%, or 90% according to a special calculation due to combined disabilities in different parts of the body (depending on a National Insurance Institute Medical Committee).
- Those with an amputated or paralyzed arm or leg due to which permanent disability has been established to be at least 50% (depending on a National Insurance Institute Medical Committee).
- Those for whom at least 19% permanent disability has been established in accordance with The Invalids Law (Compensation and Rehabilitation).
- For information on other entitled populations, see:
- Purchase Tax Discount on Residential Property for Children with 100% Disability (depending on a National Insurance Institute Medical Committee)
- Purchase tax discount for Holocaust survivors and those disabled in war against the Nazis
- Purchase tax discount for work disability victims
- Purchase tax discount for victims of hostile acts
- Purchase tax discount for those who became disabled as the result of a road accident (depending on a National Insurance Institute Medical Committee)
How to Claim It?
- The request for the discount must be submitted to the Lands Taxes Office responsible for the area in which the property is located.
- The following documents must be attached to the request:
- Declaration form for purchase of the property
- Form 2973 - Partial Exemption from Purchase Tax for People with Disabilities Request Form
- For those for whom earning incapacity of at least 75% has been established, the relevant documentation from the National Insurance Institute must be attached
- Medical documentation indicating the disabilities must be attached.
- In the following cases, an applicant must appear before a National Insurance Institute Medical Committee (similar to the process of Requesting an Income Tax Exemption from a Medical Committee), in order to have eligibility be determined:
- Individuals for whom permanent disability of 100% has been established or 90% in accordance with a cumulative calculation of disabilities in various parts of the body.
- Full (100%) Disabled Child Benefit recipients.
- Individuals for whom permanent disability of at least 50% has been established who are also:
- Arm or leg amputees
- Disabled as the result of a road accident in accordance with The Compensation for Victims of Road Accidents Law
- The request to appear before a medical committee is submitted to the Lands Taxes Office along with the request to receiving a purchase tax discount. For more information, see: Purchase Tax Discount Medical Committee.
- A purchase tax refund may only ever be received twice.
- If a couple is buying a residence in order to live in it and one of the partners has disabilities as described above, then they are both entitled to the discount. If the couple was not married when the residence was purchased, they are entitled to a reimbursement if they get married within 12 months of signing the purchase contract.
Laws and Regulations
- Lands Taxation Regulations (Appreciation, Sale and Purchase) (Purchase Tax), Section 11
- Income Tax Regulations (Establishing the Degree of Disability), 5740-1979 (on the Nevo website)
- Guide to the Sale/Purchase of Real Estate on The Tax Authority website