If you have been planning to buy an apartment in Israel for a supplemental income or investment, better hurry up.
In a coalition deal arranged between Prime Minister Binyamin Netanyahu’s Likud and the Kulanu party led by Finance Minister-designate Moshe Kahlon, Israel will impose a tax of up to 20 percent tax on housing purchased for investment purposes.
The investment tax at present is graduated, with five percent in the first tax bracket, moving up to a maximum of 10 percent.
Someone who buys the same apartment for residential purposes – who intends to actually live in the apartment – will be taxed only up to five percent, according to Globes.
It was also agreed the real estate partners with the Housing Ministry will build 700 apartments for public housing. Other lots will be sold at a discount to contractors under the agreement, Ynet reported.
Kahlon’s party signed a coalition agreement yesterday (Wednesday, April 29) with Likud.