Some principles on how to calculate the improvement levy
- Buying an apartment in Israel
- Improvement Levy
First, according to the definition of the law, one should not refer to the increase in real estate prices in general, but only to the increase in real estate value following the approval of the plan. Second, the charging of an improvement levy will also apply to the receipt of ‘relief’ or ‘excessive use’, and not only to the approval of the plan.
Another issue I would like to address is that the charge for an improvement levy can grow even if they are not accompanied by the granting of ‘building rights’.
This matter is important so that it does not imply that only if the apartment can be expanded or an additional floor built will there be a charge for an improvement levy, but as long as the grant of the improvement plan raised the value of the land, an improvement levy will apply.
For example, a warehouse that is physically attached to the apartment and which has been used all these years as an additional room in it, receiving a plan that upgrades the warehouse from ‘service areas’ to ‘main area’ will create a charge for the improvement levy.