Apartment for sale, apartment for rent/ShutterStock
"The Tax Authority thinks that it is necessary to examine the return of the tax on a third apartment. From our point of view, it is a right step that will be increased in the 2025 budget. The Minister of Finance also strengthens the move," stated the director of the Tax Authority, Shay Aharonovitch, at the Eilat Real Estate Center 2024 conference in collaboration with Real Estate Media , which took place in the last two days. Aharonovich said these things against the background of a debate in the Treasury about taxation measures following the war.
We will remind you that the third apartment tax is a tax promoted by the Ministry of Finance in 2016 and even approved by the government, during the time of former Minister of Finance Moshe Kahlon. The tax was supposed to include taxation on additional apartments owned by investors according to a complex calculation formula. The tax drew great opposition and was eventually canceled by the High Court of Justice due to flaws in the legislative process.
Shay Aharonovitch, the Real Estate Center Conference in Eilat 2024 in collaboration with Real Estate Media/Now Media
Furthermore, Aharonovitch said on the subject: "Put a tax on the rent properly and leave the purchase tax. There is no doubt that if we raise the tax to 25%, a portion will probably fall on the renters, certainly in the areas of demand. There is nothing to do beyond that. The second quarter of the year will teach us It's better if the economy manages to get through this huge pitfall of iron swords or if we're somewhere else."
Let's recall that the conference was very stormy, after Finance Minister Bezalel Smotrich and Transport Minister Miri Regev, who came to be interviewed on stage, were booed. Smotrich even left the stage, but returned after a few minutes.
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