Capital gains tax and land praise tax
- Buying an apartment in Israel
When an owner sells a residential apartment, he is liable to pay capital gains tax, or appreciation tax unless he has an exemption.
The difference between the obligation to pay appreciation tax and the obligation to pay capital gains tax does not stem from the profit, but from the characterization of the owner. In the case of a body engaged in the purchase and sale of real estate, it will be liable to capital gains tax.
Otherwise, he will be charged an appreciation tax (according to the Real Estate Tax Law).
Of course, in this essay, we are only dealing with the payment of appreciation tax, and therefore we will not touch on the issue of capital gains tax.