Residential apartment for purchase tax
- Buying an apartment in Israel
It is advisable to note the difference in the definition of a residential apartment for the purpose of paying purchase tax [according to real estate taxation regulations] which also includes the purchase of an apartment whose construction has not yet been completed.
Another difference lies in the fact that regulations require an objective test as well as a subjective test because the apartment is intended for the purchaser’s use for residential purposes.
On the one hand, the importance of defining a residential apartment decreased due to the reduction of appreciation tax exemptions, however, its importance increased due to economic development and the increased types of property (see above).
The attachments of a residential apartment. A residential apartment comes along with the attachments that belong or are used for the welfare of the residents of the apartment.
Thus, the following parts will be used as part of the apartment: balcony, garden, storage room, laundry room, covered parking, the parts in the common property, and more.