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New immigrants to the State of Israel will enjoy a further real estate tax break when they purchase their first home in the Jewish State, following approval by the Knesset Finance Committee of an amendment to real estate tax regulations.
Under the amendment, new immigrants will pay a purchase tax of 0.5 percent on a home that costs between NIS 1.98 million ($517,579) and NIS 6 million ($1,568,422), according to Globes.
Israelis who are not new immigrants are required to pay a tax of 3.5 percent on the purchase of a home costing between NIS 1.98 million and NIS 2.34 million ($611,685), and a tax of 5 percent on the purchase of a home costing between NIS 2.34 million to NIS 6 million.
All Israelis, including new immigrants, are exempt from real estate tax on the first NIS 1.98 million on the purchase of a first home.
“The State of Israel embraces the immigrants, especially at this time when we as a country must do everything possible to make it easier for new immigrants from around the world who are returning home,” Finance Minister Bezalel Smotrich explained.