Purchase Tax Cut for Investors Until the End of 2024

The Finance Ministry is studying the possibility of reducing the purchase tax for investors until the end of 2024
Amid the many criticisms voiced over the intention to "fix" the purchase tax from 2025, the Treasury is now considering a proposal to reduce it until the law comes into effect, in order to give the market a boost of energy • But similar cases in the past show that the move may lead to price increases

The reason for this move is clear: at a time when the market is suffering a continued slump, due both to the frequent interest rate increases over the last two years and to the "Iron Swords" war, reducing the purchase tax may invite more real estate investors to enter the market and benefit, during a short, specific period, from the tax reduction on the apartments they will buy. The initiative apparently came from entrepreneurs and contractors, and is now being seriously considered, as has already happened on many occasions.

The Finance Ministry's decision on the real estate sector was supposed to be included in the updated budget proposal for 2024, which was approved last week, but this part was ultimately removed from the proposal and has not yet been approved, and according to industry sources, it was supposed to be submitted for government approval early this week.

As the hours passed it became clear that the real estate chapter again was not submitted for approval and would again be postponed by a few days.

It turns out that the proposal that was supposed to go to the government table was not yet ready, at least in the eyes of some of the officials, or as the Prime Minister's Office defined it: "It seems that the proposal is not yet ripe." According to details conveyed to Globes, one of the main reasons is the desire of Finance Minister Betzalel Smotrich to re-examine the real estate chapter before its approval.