Finance Committee approves Kahlon’s tax increases on apartments for investment

The Knesset Finance Committee on Monday approved Finance Minister Moshe Kahlon’s plan to increase taxes on apartments, a move intended to steer existing apartments out of the rental market and onto the sales market.

The law will go into effect on Wednesday June 24, not July 1 as earlier planned, if it passes its second and third readings in Knesset Monday as expected, in order to cover apartment-buyers looking to quickly close deals ahead of the law coming into effect.

Tax rates will rise to 8% on apartments under NIS 1.12m (currently at 5%), from NIS 1.12m to NIS 3.37 (currently 6%) and from NIS 3.37m to NIS 4.64m (Currently 7%). They will rise to 10% on apartments from NIs 4.64m to NIS 15.47 (currently 8%) and remain at 10% for apartments over NIS 15.47m.

Source: http://www.jpost.com/Israel-News/Finance-Committee-approves-Kahlons-tax-increases-on-apartments-for-investment-406803

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