Categorized | International

Low Real Estate Taxes in Israel

Low Real Estate Taxes in Israel
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An accounting firm Baker Tilly came out with a report stating that Israel has the lowest rate of taxes on real estate worldwide. It was reported that the people of Israel pay less real estate taxes than any other country in the world.

This low tax rate on the buying and selling of properties in Israel as compared with other countries worldwide is an advantage for the real estate investors as this sector of the Israeli economy is the best market for these investors. Property investors are boosting up the market by fuelling up the increase in demand for real estates which is undoubtedly backed by low interest rates. This factor has been quite essential for the rise in the property demand. However, apartments in Israel are still bearing a tax rate of 30% which makes the acquisition of flats to the present generation couples a bit difficult. These taxes are inclusive of rental tax, tax on the purchase of a property and capital gains tax in case of selling the property.

According to a data published in the Association of Contractors and Builders in Israel, it was given that the states authority collected NIS 11.5 billion from the new flats taxes and VAT’s in the year 2010. The ongoing year too is following the trend as the collections have reached to 35% in the period of January to May 2011.

In the talks of the taxes on the builders and contracters, it was said in the survey that there are many taxes that are only being imposed in Israel such as the betterment tax and development levies which is regarded as the highest tax worldwide.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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