Real Estate Taxation
in Israel

Expert real estate tax law in Israel for individuals, investors, new immigrants and companies

Attorney Jordan Aaron Zaghdoun supports clients in optimizing the tax aspects of their real estate transactions in Israel, combining mastery of Israeli law with understanding of Franco-Israeli issues.

Israeli real estate taxation is complex and constantly evolving. Poor anticipation can cost hundreds of thousands of shekels. Our firm guarantees a tailor-made, compliant tax strategy.

Our areas of expertise

New Immigrants (Olim Hadashim)

Tax benefits and exemptions upon Aliyah

New immigrants benefit from significant tax advantages when purchasing real estate in Israel. Our firm guides you in optimizing these provisions.

Partial or full exemption from purchase tax (Mas Rechisha)
Reduced preferential rate on the first millions of shekels (rate applicable at date of acquisition)
Eligibility conditions and deadlines (7 years)
Combination with other tax benefits
Optimized acquisition strategy for Olim
Advice on purchase timing post-Aliyah

Real Estate Companies (Igud Mekarke'in)

Taxation of real estate holding structures

Holding real estate assets through a company in Israel is subject to specific tax rules. We structure your investments to optimize their taxation.

Taxation of real estate holding companies
Capital gains tax on real estate (Mas Shevach)
Dividend distribution and shareholder taxation
Choosing the optimal legal structure (Chevra / Shutafut)
Exit strategy and share transfers
Corporate tax and admissible deductions

Foreign Investors

Taxation of non-residents in Israel

Foreign investors face specific tax rules. Our bilingual Franco-Israeli expertise allows you to secure your investments in full compliance.

Mas Rechisha: 8% rate for non-residents (second property)
France-Israel tax treaty and double taxation avoidance
Declaration obligations and tax representation
Capital gains for non-residents
Bank financing limited to 50% for foreigners
Optimization through appropriate legal structures

Resident Investors

Taxation of multiple acquisitions and rental investments

Any resident investor owning multiple properties is subject to progressive taxation. We advise on the optimal structuring of your real estate assets.

Progressive Mas Rechisha rates (up to 10%)
Tax on rental income (exemption up to ~5,500 ₪/month)
Capital gains: linear rate vs. historical calculation
Property tax (Arnona) and deductible charges
Asset optimization and sale timing
Annual tax returns and compliance monitoring

Purchase Tax (Mas Rechisha)

Rates, calculations and optimizations

Purchase tax is one of the main transaction costs in Israel. Our firm precisely calculates your exposure and identifies legal optimizations.

Resident scale: 0% to 10% depending on value and status
Non-resident scale: 8% from the first shekel
Exemptions for new immigrants and first-time buyers
Calculation on market or declared value
Exemption applications and available appeals
Planning before signing the preliminary contract

Capital Gains Tax (Mas Shevach)

Sale, exemptions and exit strategies

Selling a property in Israel triggers capital gains taxation. Our expertise allows you to anticipate and optimize this tax burden.

Exemption for primary residence (strict conditions)
Linear rate of 25% for properties acquired after 2014
Historical calculation for older properties
Admissible deductions (improvement costs, fees)
Tax deferral and spreading strategies
Impact of international tax treaties

Why choose us?

Dual legal culture

A unique expertise combining Israeli tax law and an understanding of the issues facing French nationals in Israel.

Preventive tax advice

We intervene before signing, to structure the transaction optimally and avoid tax surprises.

Guaranteed compliance

All our strategies are legal, documented and compliant with the requirements of the Israeli tax authority (Rashut HaMisim).

Optimize your taxation
before investing

Preventive tax advice can represent considerable savings. Schedule an appointment for a personalized analysis of your situation.