The Finance Ministry on Monday approved a new discount on purchase tax for olim (new immigrants) purchasing a home in Israel.
Under the new guidelines, new olim will be able to purchase a home valued up to 2.5 million shekels with a full exemption from the purchase tax, and a home valued up to approximately 6 million shekels with a reduced purchase tax of only 0.5%.
The benefit, which was definitively approved Monday by the Knesset’s Finance Committee, will take effect on August 15th and will apply to new immigrants - defined as having immigrated within the past seven years - who have not yet purchased a home.
"This is a significant benefit primarily aimed at helping young couples who are new olim to buy a home in Israel, considering the price gaps compared to housing prices in their countries of origin," a statement read. "At its peak, this benefit will amount to approximately 175,000 shekels for the olim."
The new benefit represents a significant change compared to previous regulations. According to data provided by the Tax Authority on Monday at the Finance Committee meeting, only a few dozen olim have benefited from the purchase tax benefit until now, and now, according to the Tax Authority’s estimates, more than a thousand immigrant households will receive a significant benefit when buying their first home in Israel.
Minister of Aliyah and Integration Ofir Sofer, welcomed the approval of the measure, saying: "I thank the Minister of Finance, Bezalel Smotrich, and the Chairman of the Finance Committee, MK Moshe Gafni, for their important assistance in passing the regulation and their commitment to the olim."
"This is news that will help many immigrants adapt to the country and encourage those interested in making aliyah to decide to come to Israel. Since the start of the war, immigration to Israel continues, and interest is increasing. The Ministry of Aliyah and Integration is working tirelessly to ease the integration of olim in various fields, including housing assistance, Hebrew studies, community support, and academic studies."