The recent amendment by the Knesset Finance Committee significantly reduces the purchase tax for those making Aliyah, providing a great opportunity for new immigrants. Now, Olim buying their first residential property will pay no tax on the first 1,980,000 NIS and just 0.5% up to 6 million NIS. This change encourages new immigrants by lowering financial barriers and making it more affordable to settle in Israel.
Previously, many Olim opted for the standard tax rate due to the low ceiling of the discounted bracket. With this new legislation, significant savings are expected for Olim, making homeownership more accessible. A non-Oleh would pay nearly 195,538 NIS on a 6 million NIS property, while an Oleh would pay only 20,100 NIS.
The new rules also ensure the benefit is used appropriately: the property must be the sole residence and not an investment. The Israel Tax Authority is stricter, requiring proof of the property’s use as a main residence. High-end properties over 20 million shekels are excluded from these benefits.
This legislative change is a step forward in supporting Olim and enhancing their integration into Israeli society, reflecting a commitment to easing their transition.
