Everyone who owns more than one apartment (or more than one residential property) in Israel and was thinking about selling it in recent years is well aware that he is not eligible for exemption from capital gains tax on real estate. Instead, it is possible to sell the apartment and enjoy a benefit called “Linear Calculation”.
The “linear calculation” allows a significant discount on the capital gains tax on real estate, but its use was limited to the sale of two apartments only.
Many people mistakenly believe that the “linear calculation” benefit will no longer be applicable starting from January 1st, 2018.
However, it is exactly the opposite – starting from January 1st, 2018, one can sell apartments and enjoy the “linear calculation” benefit without any limitation regarding the number of apartments that are being sold. Moreover, even the limitation on the use of this benefit in a sale to a “relative” was canceled.
We are inviting you to contact our firm to receive legal counseling.
Note:
This article provides general and preliminary information only and should not be construed in any event as legal counseling and/or as a substitute for legal counseling in respect of any case and its circumstances.
The above should not be relied upon without consulting with an Israeli lawyer before taking any action or making any decision. The above is true as of the date of its composition, and its veracity may change from time to time.
Distribution and/or duplication and/or photocopying of this document and/or part thereof without permission are prohibited.
