Taxes When Buying and Selling Real Estate in the 3.5–30M ₪ Segment (1113)

Hyper‑Local Unehasim: full guide to Purchase Tax, Capital Gains Tax, exemptions, benefits, and optimization

In the 3.5–30M ₪ segment, tax exposure can reach 3%–30% of the transaction value.
A properly structured deal can save hundreds of thousands of shekels, and in some cases — millions.

1. Taxes When Buying (Purchase Tax — Mas Rechisha)

Purchase tax depends on:

• buyer status
• number of properties owned
• property price
• property type

1.1. Purchase Tax for a Single Homeowner

If this is your only residence, you receive a reduced tax bracket.

Typical structure (updated annually):

• a portion is tax‑exempt
• then 3.5%
• then 5%
• then 8%
• then 10%

In the 3.5–30M ₪ segment:

Purchase tax usually ranges from 150,000 to 1,200,000 ₪.

1.2. Purchase Tax for a Second Property

If the buyer owns another home:

• 8% on part of the value
• 10% on the remainder

In the 3.5–30M ₪ segment:

Tax can reach 300,000–3,000,000 ₪.

1.3. Purchase Tax for Investors

Investors pay:

• 8–10% of the purchase price
• no discounts

Important:

Because of the high tax, investors never buy illiquid properties, even if the price looks “cheap.”

2. Taxes When Selling (Capital Gains Tax — Mas Shevach)

Mas Shevach is a tax on the increase in property value.

It depends on:

• seller status
• holding period
• property type
• available exemptions

2.1. Full Exemption From Mas Shevach

You can receive a full exemption if:

• you are selling your only residence
• you owned it for 18+ months
• there is no price cap

In the 3.5–30M ₪ segment:

This is one of the strongest optimization tools.

2.2. Capital Gains Tax for a Second Property

If the property is not your only residence, the tax is:

• 25% of the capital gain

Example:

Bought for 6M ₪ → sold for 8M ₪ → gain 2M ₪ → tax = 500,000 ₪.

2.3. Capital Gains Tax for Investors

Investors pay:

• 25% of the gain
• no exemptions

3. Additional Costs When Buying

✔ Lawyer

0.5–1% of the purchase price.

✔ Appraiser

2,000–6,000 ₪.

✔ Mortgage

Bank fees + insurance.

✔ Building maintenance (Vaad Bayit)

New buildings: 400–1,200 ₪ / month.

✔ Arnona

Premium areas: 1,000–2,500 ₪ / month.

4. How to Optimize Taxes (Unehasim Practice)

✔ Choose the correct “single residence” status

Sometimes it’s better to sell the old home before buying the new one.

✔ Use the single‑residence exemption

Saves hundreds of thousands of shekels.

✔ Time the sale correctly

Sometimes waiting 18 months is financially optimal.

✔ Use deal structure strategically

Examples:

• purchase under one spouse
• sell under exemption
• purchase through a company (rare, but sometimes beneficial)

✔ Consider tax impact when choosing a property

Sometimes a property with lower appreciation → higher net profit due to lower tax.

5. Common Buyer Mistakes

✘ Buying a second home without calculating purchase tax

✘ Selling without using available exemptions

✘ Incorrect ownership structure between spouses

✘ Buying through a company without justification

✘ Underestimating capital gains tax

✘ No tax strategy for the transaction

6. How Unehasim Builds a Tax Model

For every 3.5–30M ₪ property, Unehasim performs:

• purchase tax calculation
• capital gains tax calculation
• exemption analysis
• deal‑structure analysis
• 5–10 year tax exposure model
• exit strategy analysis

This allows buyers to:

• avoid costly mistakes
• reduce tax burden
• maximize net profit
• choose the optimal property