Expenses of legal fees and brokers for the purpose of praise tax
- Buying an apartment in Israel
It is advisable to note that the recognized expenses deductible for the purpose of appreciation tax are limited to a closed list according to the Real Estate Tax Law.
When the expenses are unreasonable, it is expected that the Department of Real Estate Taxation may not recognize the expense as a deductible expense.
Reasonable expenses by the tax authorities are a payment of 2% of the transaction amount for attorney’s fees, as well as for brokerage expenses.
I did not refer to the VAT component charged by service providers, and anyone who wants to be required to address this issue is referred to the law as well as the case law in this matter.