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Buying an apartment in Israel as an investment

 
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amother




OP
 

Post Tue, Aug 31 2021, 9:18 am
Looking for advice for buying an apartments
to be used as a rental in Israel? Are there extra taxes involved ? Who's good to speak with?
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amother




Lightcoral
 

Post Tue, Aug 31 2021, 10:02 am
It's hard to manage from far, make sure you have someone who can manage everything.
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amother




Watermelon
 

Post Tue, Aug 31 2021, 10:20 am
We bought an apt in Yerushalayim as an investment. It doesn't cover itself. There is an abundance of new apartments so rent is lower than we expected. Tenant pays the taxes. Consult a lawyer in Israel for up to date advice. Hatzlocha.
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amother




OP
 

Post Tue, Aug 31 2021, 10:26 am
amother [ Watermelon ] wrote:
We bought an apt in Yerushalayim as an investment. It doesn't cover itself. There is an abundance of new apartments so rent is lower than we expected. Tenant pays the taxes. Consult a lawyer in Israel for up to date advice. Hatzlocha.


Hmmm thanks will try to find out more who's a good lawyer?

I was thinking eventually retire in the apartment but if it doesn't completely pay for itself might be more of a hassle managing from abroad etc...
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amother




Latte
 

Post Tue, Aug 31 2021, 10:28 am
Investing in Israeli homes is a huge business.
But you have to pick your neighborhood well.
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amother




Blush
 

Post Tue, Aug 31 2021, 10:30 am
I do believe there are no taxes involved in Israel if you are not earning more than 5000 nis a month from the apartment. After that, you pay some sort of taxes (so if you are renting it out for 8000 nis, then you will be paying taxes on 3000).

You need to do a lot of research - first, you need to compare rental and purchase prices. There are places in Israel where the purchase price is high but rentals are relatively low, and vice versa. Also, you need to analyze where you think value of homes will go up.

It is difficult looking after an apartment long distance. If you live abroad, you will likely need to hire a property company.
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amother




Blush
 

Post Tue, Aug 31 2021, 10:35 am
amother [ Watermelon ] wrote:
We bought an apt in Yerushalayim as an investment. It doesn't cover itself. There is an abundance of new apartments so rent is lower than we expected. Tenant pays the taxes. Consult a lawyer in Israel for up to date advice. Hatzlocha.


Tenants pay city taxes (arnona), but I think op was referring to taxes on money earned. That's for the landlord.
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amother




OP
 

Post Tue, Aug 31 2021, 10:39 am
amother [ Blush ] wrote:
Tenants pay city taxes (arnona), but I think op was referring to taxes on money earned. That's for the landlord.

Yaa I think we'd be paying extra taxes thanks everyone ☺
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essie14




 
 
 
 

Post Tue, Aug 31 2021, 11:27 am
You would have to pay purchase tax which I think may be a different rate if you're not a citizen. You definitely need a good property lawyer.
You may also have to pay tax on the rental income.
It's a big hassle to manage from abroad and you would have to pay a manager.

http://kaymanlegal.com/about/
English speaking lawyer
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amother




DarkGray
 

Post Wed, Sep 01 2021, 9:54 pm
We recently did this! Please post a way I can contact you because I have tons of info to share.
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amother




Lemon
 

Post Wed, Sep 01 2021, 11:06 pm
If you buy over the green line you don't need to pay purchase tax. In any case speak to a good Lawyer.


We used mickey Levine, he's excellent and is American
https://www.levinelaw.co.il/
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amother




DarkGray
 

Post Wed, Sep 01 2021, 11:22 pm
amother [ Lemon ] wrote:
If you buy over the green line you don't need to pay purchase tax. In any case speak to a good Lawyer.


We used mickey Levine, he's excellent and is American
https://www.levinelaw.co.il/


Are you sure you're not me?? We also used Mickey and I agree he was fantastic!!!
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shanarishona




 
 
 
 

Post Fri, Sep 10 2021, 7:11 am
Darkgray -
I’m not the OP but I would love to know.
Could you pm me with info please?
Thank you!
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chanchy123




 
 
 
 

Post Fri, Sep 10 2021, 7:56 am
Are you in Israel? Taxation is different if you’re investing from abroad.
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amother




OP
 

Post Fri, Sep 10 2021, 9:48 am
Yes as an investment I'm assuming there's more taxes involved- oh I wish we could make aliyah! Smile
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amother




Latte
 

Post Fri, Sep 10 2021, 9:54 am
Any home you own after the first, has heavier taxes when you sell.
Some get around this by buying the next house under another TZ besides your own and your husband's, for example a child 18 or over or a parent or in-law who is an Israeli citizen and does not yet own a home.
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