Introduction:

People with disabilities may be entitled to a reduced purchase tax of 0.5% of the value of the property, when purchasing a home in which they will live.
When purchasing a single residence, valued up to NIS 2,500,000 (as of 2017), there is a tax exemption on the first payment bracket.
You can use the Purchase Tax Simulator on the Tax Authority's website to calculate the amount of tax owed.
For more information, see Regulation 11 of the Property Tax Regulations (Improvement and Acquisitions) (Purchase Tax)

People with disabilities may be entitled, in accordance with the relevant conditions, to pay a reduced purchase tax when purchasing a home in which they will live.

  • Those who buy a piece of land to build on, are eligible to pay a reduced income tax of 0.5% on the part of the land that the house they will live in will be built on (regular income tax is paid on the rest of the property) and on the condition that the house is built within 2 years.
  • 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?

How to Claim It?

Medical Committee

  • In the following cases, an applicant must appear before a National Insurance Institute 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:
  • 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.

Please Note

  • 'A person can receive a purchase tax discount only twice during the course of his life.
  • If a couple is buying a residence in order to live in it and one of the partners is entitled to the benefit, then they are both entitled to the discount. If the couple was not married when the residence was purchased, but they got married within 12 months of signing the purchase contract, they are entitled to a reimbursement of the value of 0.5% of what the eligible partner paid.

Purchase Tax Return for those that paid more than required

  • The Tax Authority has an application that enables those who have previously made a real estate transaction in to check whether there is a credit balance in their favor, due to them overpaying betterment or purchase tax.
  • If there is a credit balance, you can receive the refund by filling out the details in the application.
  • For more information, see Tax refund for over payment tax of betterment or purchase tax.

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