Ministry of Aliyah and Integration — Purchase Tax Discount for Olim

Source: https://www.gov.il/en/pages/olim-purchase-tax-discount · 2026

New immigrants (Olim) who purchase a residential apartment or business property may be eligible for a discount on their purchase tax.

Eligibility Period

From one year before Aliyah until 7 years after Aliyah.

Starting from August 15th, 2024, Olim are eligible for a tax discount when buying their first apartment.

How Purchase Tax Works in Israel

Purchase tax on apartments in Israel is calculated in tiers — the purchase price is divided into several tiers, each with a different tax rate. The final tax amount is the sum of all calculations from each tier.

Purchase Tax Calculation for Olim

• Tax exemption on the value up to the first tier as defined in the Real Estate Taxation Law for single apartment purchase tax rates (₪1,978,745 as of 2024)
• 0.5% purchase tax on the value exceeding the first tier (from ₪1,978,745) up to ₪6 million
• Standard tax calculation (applicable to all Israelis) for apartment value exceeding ₪6 million

Important Limitations

• The discount can be received only once for an apartment purchase.
• The discount can be received only once for a business property purchase.

Tax Calculator Simulator

Buyers can use the purchase tax calculator simulator on the Tax Authority website to estimate their tax.

How to Apply for the Discount

1. Complete Form 2973 – Partial Purchase Tax Exemption Request for Olim (available here).
2. The form must be completed in the presence of a lawyer or real estate tax clerk.
3. Attach a registration extract from the Ministry of Interior proving your Oleh status.

Business.il Center — Free Guidance for Olim

Olim seeking personal guidance can contact the Business.il center at the Entrepreneurship Division (free service, available in all languages). Topics covered include:

• Reduced purchase tax for new immigrants
• Information about buying property and renting in Israel
• Arnona (municipal tax) discount

Contact the Ministry of Aliyah and Integration’s Economic Business Information Center:

• Phone (from Israel): *2994
• International calls: +97239733333
• Email: infobiz@bezeqint.net

This benefit is the result of cooperation between the Ministry of Aliyah and Integration, the Tax Authority, and the Ministry of Finance.