As part of the deliberations on the Arrangements Law, the Finance Committee yesterday approved for second and third readings a number of tax proposals in the field of housing, the most prominent of which proposes increasing the tax exemption for landlords who own only one apartment, up to NIS 90,7 a year.
This means that now, the exemption for those belonging to this group – landlords who own one apartment – will be NIS 500,5 per month, while the usual exemption for landlords is a ceiling of NIS 471,<> per month.
The renewal, according to the bill, is that the landlord of one apartment will be able to deduct from his income from renting the apartment the rent he paid, up to NIS <>,<> a year, as stated, even though these are private expenses that are not supposed to be deducted according to the income tax on an ongoing basis.
This is a benefit of thousands of shekels a year for the relevant group, which will also have a positive impact on rising rental prices. The rationale behind this proposal is to make it easier for owners of a single apartment, who have chosen not to live in an apartment they own, but to rent it out and rent another apartment. The proposal will also help older people who live in assisted living facilities and rent out their apartments.
The Finance Committee approved: The exemption ceiling for landlords will increase to NIS 7,500 (Photo: ShutterStock)
Nir Shmul, CEO of the Urban Development and Renewal Company and Snir Company, welcomed the Finance Committee's decision, saying, "The Finance Committee's decision to raise the exemption ceiling to NIS 7500,<> is a very important step for the benefit of apartment renters and renters in Israel. In light of the decline in the pace of home sales in Israel in recent months, rental prices continue to rise, especially in high-demand areas, and the Finance Committee's decision is a correct and appropriate step in the war against the cost of living in Israel."
"To date, many landlords have imposed the tax burden on apartment renters and rolled over the tax on the tenants, who are already groaning at the rising cost of living in Israel. The previous exemption ceiling was low and inappropriate for rent increases in recent years. It has not been updated for a long time, and therefore the current update adjusts rents to costs in rental prices in recent years."
"This will also cause landlords who until now have evaded taxes, and made all sorts of combinations with tenants, to reconsider whether to evade taxes or alternatively report the real rent, when the exemption ceiling has risen to a rent appropriate for the rental market in Israel today."
- Real Estate
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- Real Estate