Question 1

What is Mas Rechisha (Purchase Tax) in Israel?

Accepted Answer

Mas Rechisha is the Israeli property purchase tax paid to the Tax Authority upon buying real estate. Rates range from 0% to 10% based on property value and buyer status. First-time buyers and Olim (new immigrants) receive significant exemptions — Olim pay 0.5% on the first 1.9M NIS. The tax must be paid within 60 days of signing the purchase agreement.

Question 2

What is Arnona (Municipal Property Tax)?

Accepted Answer

Arnona is the Israeli municipal property tax paid to the local authority (Iriya). It is calculated based on property size, location, and usage type. Rates vary significantly between cities — Tel Aviv charges approximately 80-120 NIS/sqm annually while peripheral cities charge 30-60 NIS/sqm. New Olim may qualify for a 90% discount in their first year.

Question 3

What is a Mashkanta (Israeli Mortgage)?

Accepted Answer

A Mashkanta is the Hebrew term for a mortgage loan in Israel. Israeli mortgages typically combine multiple tracks: fixed-rate (Kavua), variable-rate (Mishtane), Prime-linked, and CPI-linked. Bank of Israel regulations require a minimum 25% down payment for residents and 50% for non-residents. Maximum loan term is 30 years.

Question 4

What is Tabu (Land Registry) in Israel?

Accepted Answer

Tabu is the Israeli Land Registry (Lishkat Rishum HaMekarkein) that records property ownership and rights. Registration in the Tabu provides the strongest legal proof of ownership. Some properties are registered in the Israel Land Authority (Minhal) instead. A Tabu extract (Nesach Tabu) is essential for any property transaction.

Question 5

What is Sal Klita (Absorption Basket)?

Accepted Answer

Sal Klita is the financial assistance package provided by the Ministry of Aliyah and Integration to new immigrants (Olim Chadashim). It includes monthly payments for the first year totaling approximately 25,000-30,000 NIS for singles and 40,000-50,000 NIS for families. The first installment is received at the airport upon arrival.

Question 6

What is Tama 38 in Israeli real estate?

Accepted Answer

Tama 38 (National Outline Plan 38) is a government program to strengthen older buildings against earthquakes. Under Tama 38/1, buildings are reinforced and residents receive added rooms or balconies. Under Tama 38/2, the old building is demolished and rebuilt with additional floors. The program provides significant value increases for existing apartment owners.