Israel announces tax relief plan to curb home prices

By Trend

The Israeli Ministry of Finance on Sunday announced a tax relief plan as part of a broad government program to curb home prices, Trend reports citing Xinhua.

In mid-March, Israel's Central Bureau of Statistics reported that real estate prices in the country saw a 10-year record year-on-year increase of 13 percent in the monthly cycle of December 2021-January 2022.

The new tax plan, including a raised ceiling amount for a tax exemption, aims to make it easier for young couples to purchase their first apartment, increase homes supply and reduce excess demand in the housing market, the ministry noted.

Significant tax benefits will also be given to private landowners to encourage the construction of residential apartments.

Meanwhile, landowners who continue to hold vacant lands without constructing residential apartments on them in the coming years will be required to pay higher tax rates.

The plan excludes foreign investors from tax benefits.