Category Taxation in Israel

Israel’s Hunt For Ghost Apartments Not Succeeding

November 17, 2016 Taxation in Israel

Empty ApartmentTEL AVIV – Israel’s tax on empty property is not seeing the expected results, as authorities are unable to locate the empty apartment.

On November 15th the Knesset of Israel revealed that the new tax on “ghost apartments” has not had the intended effect, with only a small portion of taxpayers who should be required to pay the tax being made aware of their obligations.

Earlier this year the government of Israel enacted a new regulation which required that a taxpayer pays double the standard rate of property tax on vacant residential property.

The rate for these so-called “ghost apartments” is ILS 223.56 per square meter of the apartment.

It is estimated that there may as many as 48 000 empty residential apartments in Israel, with a significant portion belonging to overseas owners ...

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Rent in Israel Could Increase with New Tax Rules

August 10, 2016 Taxation in Israel

Jerusalem propertyTEL AVIV – New tax rules in Israel could lower the price of buying a new apartment, at the potential cost of raising the price of rent in the country.

Property experts in Israel are warning that newly proposed regulations on the taxation of apartments could lead to a dramatic increase in rental prices across the country.

The new rules, which were put forward by the national Minister of Finance Moshe Kahlon, would see owners of three or more apartments pay a new monthly tax.

The amount of tax to be paid will be set at 1 percent of the value of the apartment, with the value to be determined by the government.

The tax would be capped at either ILS 1 500 per month, to a maximum of ILS 18 000 per year.

The government believes that such a tax would encourage owners of several apartments to sel...

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Israel Passes Solar Tax Break

August 6, 2016 Taxation in Israel

TEL AVIV – The passing of a new bill in Israel is paving the way for a greater use of private solar panels and wind generators.

Earlier this week the Israeli Knesset approved a bill which will remove the taxes on private solar and wind generators.

Currently any individual wishing to install a solar panel or wind generator is required to pay taxes on the installation and o open a Tax Authority file.

It is believed that dropping these requirements will greatly aid the uptake of renewable generation technology, and, further, that the tax break could lead to an expansion of the industry, the creation of new jobs, and a reduced reliance on non-renewable energy.

The bill would also grant tax breaks to individuals and businesses which rent out their property to others for the installation and ...

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Low-Pollution Cars Clogging the Streets in Israel

July 25, 2016 Taxation in Israel

TEL AVIV – Israel now has the worst traffic in the OECD, thanks in part to a tax which has helped reduce the countries reliance on highly polluting cars.

According to new information released by the Organisation for Economic Cooperation and Development (OECD) over the weekend, taxes levied on cars sales in Israel have seen a dramatic shift in consumer preference towards low-pollution vehicles, but has also resulted in much greater traffic congestion.

In 2009 Israel implemented a policy of taxing car sales based on each car’s emissions levels of five different pollutants.

At the time of implementation the least polluting cars in Israel accounted for 19 percent of all sales in the country.

However, in 2014 the level of sales of the least-polluting cars had risen to 83 percent of all priva...

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Israel to Cut Taxes on Scooters

July 20, 2016 Taxation in Israel

Jerusalem propertyTEL AVIV – Scooters and motorbikes in Israel will slash taxes on scooters from 40 percent to 25 percent in an effort to reduce traffic jams.

The Finance Minister of Israel Moshe Kahlon announced that the taxes on small motorbikes would be decreased, in an effort to cut congestion and emissions.

Until June 30th 2017 the tax on the sale of small motorbikes will be reduced from 40 percent to 25 percent.

In order to fall within the scope of the tax cut, the motorbike must be less than 125cc and be rated at less than 11 kilowatts.

It is believed that the reduction in the price of small motorbikes will lead to a greater uptake by people, ultimately leading to reduced emissions levels and reduced congestion in urban areas.

It is believed that congestion in Israel causes enough economic damage to...

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