When you buy real estate in Israel, you must pay a one-time Mas Rechisha. The amount you pay is not a single flat rate but is calculated in tiers:

• The purchase price is divided into different value brackets (“tiers”)
• Each tier has a different tax rate
• The total tax is the sum of the tax due on each tier

As part of ongoing efforts by the Misrad HaKlita - משרד הקליטה - Ministry of Aliyah and Integration, the Rashut HaMasim - רשות המסים - Israel Tax Authority and the Misrad HaOtzar - משרד האוצר - Ministry of Finance, new purchase tax benefits apply for Olim purchasing their first residential apartment in Israel.

To qualify for the discount, the purchase must be made:

• From 1 year before making Aliyah, and
• Up to 7 years after Aliyah

Eligibility is counted from your Aliyah date. The Rashut HaMisim may request confirmation documentation for the Aliyah date and status (Teudat Oleh/Teudat Zehut with Oleh stamp, etc.)

If you already used the Olim purchase tax discount once (for a residence or for a business property), you cannot ‘reset’ it by making Aliyah again or changing status

Important: Thresholds are updated annually and the amounts in this guide are illustrative examples only. Always check the current tiers via the calculator below.

For Olim who meet the eligibility criteria and are buying their first apartment with Oleh rights:

• Exemption on the portion of the property value up to the Olim threshold published for that year (approximately ₪1.9 million 2024 index). 0% tax on this first tier
• 0.5% tax on the portion of the value above the Olim threshold and up to the upper Olim ceiling rate
• Standard rates - For value above approximately ₪6,000,000, standard purchase tax rates (the same as for all Israeli buyers) apply.

Please note that these rates apply only if the property is your first residential apartment under the Aliyah discount rules.

To receive the reduced tax:

• Complete Form 2973 – Partial Purchase Tax Exemption Request for Olim in the presence of a licensed lawyer or real estate tax clerk.
• Form 2973 – Partial Purchase Tax Exemption Request This is the official form used to request the purchase tax discount for Olim:
• Attach a Population Registry extract from the Misrad HaPnim - משרד הפנים - Ministry of Interior confirming your Oleh status (e.g., Teudat Zehut and Aliyah documentation).
• Submit the form and supporting documents when filing your purchase tax application (commonly handled through your lawyer or tax clerk at the time of purchase).

You must file this request at the time of purchase to receive the benefit — it is not an automatic discount.

The discount can be used once for:

• a residential apartment, and
• Separately - once for a business property (under specific conditions - please clarify with Rashut HaMisim)

Olim can get free, multilingual support on purchase tax and related topics from the Ministry of Aliyah and Integration’s Business.il Center. Please note that the center provides guidance and information only and does not represent a formal tax ruling.

• From inside Israel: *2994
• Email: infobiz@bezeqint.net

Services include guidance on:

• Reduced purchase tax for Olim
• Buying or renting property in Israel
• Arnona (municipal tax) discounts

• Government purchase tax tiers and thresholds are updated periodically. You should always verify current figures on gov.il or with your tax advisor before finalizing a purchase.
• This guide covers the Olim purchase tax benefit only. Other real estate taxes (e.g., capital gains or Arnona) have separate rules.