The Tax Authority recently publicized a new decision which is potentially good news for some taxpayers.
Purchasers of real estate in Israel pay purchase tax. If the real estate purchased is a residential property, and the apartment purchased is the only apartment owned by the purchaser he is liable to pay a lower purchase tax rate.
However, If the apartment purchased is an additional apartment a higher purchase tax rate is applied.
The abovementioned decision of the tax authorities allows for the payment of the lower purchase tax rate even if the new apartment purchased is an additional apartment in three instances.
1) If two apartments are purchased at the same time, the lower purchase tax may be paid on one of those apartments.
2) If the purchaser is part-owner of an apartment and buys the rest of that apartment from the other joint owner.
3) If the owners of an apartment purchase the adjacent apartment in order to turn both apartments into one apartment.
Good news for some in an era of tax legislation which is likely to be detrimental for most.