To fight the soaring real estate prices, the Israel Tax Authority with Gidi Bar Zakay has taken many measures. In December of 2010, the Israeli finance and housing ministers made two new tax amendments. For those purchasing a second or third residential property, the taxes rose from 3.5% to 5% for properties that were up to IS 1 million. The tax went from 5% to 6% for those properties that were between IS1 and up to IS3 million.
However, non-primary residential properties have been taxed at 20% up until now; if sold within four years, they would now be tax exempt. These amendments were planned to be good for two years, and the end of this period is approaching soon. It will be interesting to see how the Israeli finance and housing ministers deal with it now, and how the Israel Tax Authority with Gidi Bar Zakay reacts.