Foreign investors benefit from tax breaks on the Promised Land real estate market. The fact is that in some situations, the authorities provide a tax cover that benefits foreign investors in Israeli real estate.

Any country is interested in attracting investment. In recent years, the goal of Israeli lawmakers to attract investment, especially foreign ones, has become apparent. There is a noticeable upward trend in investment and real estate purchases in Israel by foreigners. 
According to Israeli law, any profit or income from growth is subject to a territorial tax. Also, all profits of residents of Israel, regardless of where they are received, are subject to income tax. At the same time, Israeli law provides for many exceptions for foreigners engaged in investments – in particular, in real estate. The range of exceptions for foreigners under Israeli law is quite wide.
The company is considered to be foreign in Israel and has the right to enjoy benefits if Israeli citizens own no more than 25% of the share capital or income of the company. 
For foreign investors, it is advisable to use the rules and benefit from tax deductions and restrictions on specific types of income in Israel: relief measures exempt them from the country’s system of re-collection of taxes. For example, an agreement on the limitation of double taxation between Israel, Sweden, Norway and Denmark exempts from paying income tax the sale of shares of companies engaged in real estate in Israel. Another example: foreign investors in Israel are exempt from the tax on investments in improvement, which are taxed by sellers, and the tax on turnover that is levied on buyers of shares in real estate companies.
With proper planning, a foreign investor can receive income from investments in Israel, reducing the amount of taxes paid. Foreign investors can enjoy the benefits provided by the agreements, as well as by Israeli law, and receive a net profit. For example, the definition of real estate in Israeli law does not include the percentage of the cost of construction. Consequently, in the event of an agreement, the interest on the cost of construction for foreigners (when selling the rights to development, and not the land itself) is not subject to taxes on investments in landscaping and on capital gains.
For foreigners, it is possible to invest through a mortgage investment trust engaged in income-generating real estate operations. Through a mortgage investment trust, foreign investors can indirectly participate in Israeli income projects. Another advantage of participation in such investments is that amendments to income tax orders are beneficial for mortgage trusts: it is paid only from dividends, but not from rental income. This is valid, as long as at least 90% of taxable income comes to investors in the form of dividends. 

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