The Kenesst's Finance committee lately approved, the Minister of Finance's decision to extend for one more year part of the temporary orders which set a lower tax rate for selling real estate property (property that was obtained prior to November 7th , 2001) to build at least 8 housing units. Such lower tax rates are subject to the buyer completing the building of the higher of the two options: 8 housing units or at least 80% of the allowed housing units according to the local zoning plan. The temporary order, which is a part of the Land Taxation Law-1969, was legislated at the beginning of 2011, as part of the government's effort to decrease real estate and especially housing prices. According to Adv. Shai Pines, a partner at the law firm of Hamburger Evron and a real estate tax specialist: "Whoever holds lands for housing for a long term before 2011, enjoys a tax benefit that is suppose to encourage him to make a deal and sell the land." However, Pines doubts the effectiveness of the temporary order, due to the current slowdown shown in the real estate market: "There is no doubt that there is a halt in transactions since buyers are waiting to see if the real estate prices are going down. Sellers, on the other hand, are not too quick to decide to lower prices. The goal is definitely a good one, but it is not certain that in the current timing and conditions the initiative would bear any fruit." |
Our Legend
Hamburger Evron & Co. was founded in 1928 by the late Adv. Arie Hamburger.
Since the 70's, the firm was headed by the late Adv. Amnon Evron, who was recognized as one of the leading lawyers in Israel in the fields of commercial law, and was renowned as an expert lawyer and a gifted litigator. In addition to his legal activities, Adv. Evron was a member on the board of the international Arthur Rubinstein Voluntary association, and was a board member of the new Israeli opera association.
