Purchasing an Apartment in Israel
December 06, 2017
When purchasing an apartment in Israel (or anywhere for that matter), there are additional fees that come along with the purchase aside for the payment of the property itself.
To begin, you will have the agent fee (if you used a real estate agent to find your property, which we highly reccommend that you do). The agent fee can range up to approximately 2% of the purchase price, PLUS VAT.
Next you'll have your lawyer fee. It is always suggested and recommended to use a lawyer when purchasing a property so they can review your contract, explain everything to you, and they can handle the paperwork involved in the property purchase. The lawyer fees can range between 0.5% - 1% PLUS VAT.
Lastly, you'll have the property tax amount you will need to pay the Israeli Tax Authority in order to complete your purchase. Though you pay this fee, your lawyer is usually the one who handles the organization of the paperwork and payment.
What is your purchase tax? There are a few contributing factors involved in figuring out your purchase tax amount. This all depends on the price of the apartment, and how many apartments you currently own. Your lawyer should be able to give you an approximate figure as to how much it will be. However, there are other ways to get an idea for yourself.
By clicking on the below link, you can just plug in the requested information, and it should give you a rough estimate or maybe even an exact amount of how much you will need to pay in purchase tax. Keep in mind, this specific calculator is only accurate up until January 15, 2018. After January 15, 2018 it may no longer be accurate as fees may change.
When involved in the purchase of property it is always best to know that though the purchase price lists one amount, it does not include any other fees or taxes involved in the purchase. Be sure to check with your realtor and lawyer for a better understanding of what additional fees and taxes are involved in your purchase.
Happy Buying ;)