Interest and linkage to the improvement levy
- Buying an apartment in Israel
- Improvement Levy
The amount of the improvement levy is linked to the index (according to section 9 of the third appendix – the consumer price index or the construction index according to the lower) for the period between the tax event and the date of realization.
After 30 days from the date of realization until its actual payment, the amount of the improvement levy is linked to the consumer price index “plus linked interest at a rate of 0.5% per month”. This is a very high interest rate so that they can be seen as a fine or penalty interest, in order to discourage late payment and streamlining collection procedures.