Can You Know the Tax Amount Before the Deal? (725)
One of the most common questions property sellers in Israel ask is:
Can you know in advance how much tax you’ll need to pay when selling an apartment?
The short answer is: yes, you can —
but only if it’s done correctly and before signing the sales contract.
Which Tax Are We Talking About?
When selling an apartment, a seller may face:
- Capital Gains Tax (Mas Shevach);
- additional payments due to reporting errors;
- loss of tax exemptions.
In practice, Mas Shevach is the tax that most often surprises sellers after closing.
Why You Can’t Just “Estimate Roughly”
Many sellers assume:
- “It’s my only home, so there’s no tax”;
- “The lawyer will figure it out later”;
- “The tax authority will calculate it anyway.”
In reality, the tax depends on:
- purchase date;
- sale date;
- purchase and sale prices;
- improvements (balcony, extensions, TAMA 38);
- ownership share;
- seller’s status (new immigrant, inheritance, etc.).
Even a small mistake can cost tens of thousands of shekels.
Legal Ways to Know the Tax in Advance
- Preliminary Tax Calculation
A lawyer or tax professional can:
- calculate the tax before listing the property;
- verify eligibility for exemptions;
- assess potential risks.
This is the most common and efficient approach.
- Tax Authority Pre-Ruling
In complex cases, you can request:
- an official ruling from the Israeli Tax Authority;
- confirmation of tax amount or exemption eligibility.
Typically used for:
- inherited properties;
- TAMA 38 projects;
- extensions and additions;
- multiple owners;
- non-standard cases.
When Knowing the Tax in Advance Is Especially Important
You should definitely calculate the tax beforehand if:
- this is not your only property;
- the apartment has extensions or balconies;
- the property was inherited;
- the building underwent TAMA 38;
- the seller is a new immigrant (Olah);
- there are multiple owners.
What Happens If You Don’t Calculate the Tax in Advance?
- unpleasant surprises after signing;
- urgent need to find additional funds;
- delays in handing over the apartment;
- disputes with the buyer;
- penalties and interest charges.
How Tax Knowledge Affects the Sale Price
When the tax amount is known in advance, the seller can:
- set the price accurately;
- understand the real net proceeds;
- negotiate confidently;
- avoid pressure from the buyer.
Tips from Unehasim
- Never sign a contract without knowing the tax exposure.
- Calculate the tax before going to market.
- Don’t rely on assumptions or “common practice.”
- Factor the tax into your pricing strategy.
Contact Unehasim Specialists
If you plan to sell an apartment in Haifa, Unehasim can help you:
- calculate capital gains tax in advance;
- verify eligibility for tax exemptions;
- identify risks before negotiations begin;
- prepare the transaction together with a lawyer.
Knowing the tax before the deal means
selling with confidence and peace of mind.
