On September 15, 2016 the Ministers Comity for legislative
amendments approved the bill proposal, according which as of
January 2017, a tax will be levied on holders of three or more
apartments, at a rate of 1% of the value of the apartment, as from
the third apartment, provided however that the tax amount shall not
exceed 1,500 NIS per month (18,000 NIS on an annualized basis), and
all that subject to additional conditions, which will be determined
by regulations. The proposed bill is supposed to be brought for
final vote in the Knesset on November this year.
In the explanatory notes to the bill it was asserted that the
decision to impose the tax arise from two major considerations: the
first, reducing the inequality between populations; and the second,
imposing tax will lead to selling apartments (in order to avoid
paying the tax) which will increase the supply of apartments and
thus reducing the price of apartments.
