A planned transformation in the rental market in Israel:
do you own an apartment and are you thinking of upgrading to a better apartment?
According to the policy of the new government, and the draft law of arrangements that will be attached to the upcoming budget, instead of exchanging apartments in a sales transaction, i.e. selling an old apartment and buying a new one is more expensive - it is better for you to rent your apartment and rent a new apartment that meets your needs.
Let's start by saying that all apartment renters will be obliged to report to the tax authority, even if they are not obliged to pay tax, but it will be in a simple and digital way.
But the bonanza
- whoever rents a single apartment, and rents another one, will get a tax benefit.
According to the proposal that is currently on the table, those who own only one apartment, and rent out and rent another apartment for living, will benefit from a tax exemption up to a higher ceiling of NIS 7,500.
The government's solution to the housing crisis: stop buying - start renting (Photo: ShutterStock)
We will remind you that today a person who rents an apartment or apartments for living, can receive a full exemption from tax on his income from the rent in any month in which this income does not exceed NIS 5,471 in that month.
In addition, the linking of the exemption ceiling to the index will be canceled, after this year the ceiling jumped by NIS 300 due to the linking to the consumer price index.
In 2022, the ceiling was about NIS 5,200 per month.
Because of this, it is proposed to cancel the linkage so that the exemption ceiling does not rise, even if the index rises.
Real estate
Tags
real estate