Tax on Purchasing a Second Property (Mas Rehisha): What You Need to Know

Buying a second apartment or house in Israel is a significant step, often associated not only with investments but also with additional tax obligations. The main one is Mas Rehisha, the property purchase tax. For a second housing unit, this tax rate is significantly higher than for the first and can reach 8% or more of the property value. Many buyers are unprepared for such a financial burden, leading to unpleasant surprises during the transaction. To avoid mistakes, it is important to understand the calculation rules and exemptions in advance. And to make the process of searching for and selling real estate as convenient as possible, we created a platform where every listing is automatically translated into four popular languages of Israel: Russian, Hebrew, English, and Arabic. This allows sellers and buyers from different sectors of society to easily communicate and find the best options. Check out our offers in the Real Estate section.

When the Obligation to Pay the Higher Tax Arises

By law, Mas Rehisha is paid when purchasing any residential property. For a first apartment, reduced rates apply (from 0% to 5%, depending on the price). However, if the buyer or their spouse already owns a share in another apartment (even one received through inheritance or gift), the new purchase is considered a second one. In this case, the tax is calculated using a progressive scale: from 5% to 8% of the total cost of the acquired property, with no tax-free minimum. An important nuance: if you sell your first apartment and buy a new one within a certain period (usually 18–24 months), you may be able to reclaim part of the tax paid. But if you simultaneously own two properties, even temporarily, the tax on the second property is charged in full. Furthermore, the status of a “second apartment” extends to shared ownership — if you own 50% of a parent’s apartment, it is already considered your share.

How to Calculate the Exact Tax Amount

The calculation of Mas Rehisha for a second housing unit depends on its value on the date the purchase agreement is signed. The rates for 2025 are as follows:

— Up to 1,919,155 shekels — 5% of the total price.
— From 1,919,155 to 2,340,280 shekels — 6%.
— From 2,340,280 to 6,005,920 shekels — 7%.
— Over 6,005,920 shekels — 8%.

Please note: unlike for the first apartment, there is no tax threshold here — the tax is calculated on the entire amount, not just on the excess above the previous level. For example, if an apartment costs 2,000,000 shekels, the tax will be 6% of the entire amount (120,000 shekels), not on the difference. For an accurate calculation, we recommend using an online calculator on the tax authority’s website or consulting a specialist. It is also important to remember that the “second apartment” category does not include properties built before 1948 or those designated as historical landmarks, but such exceptions are rare. If you are looking for an apartment for investment, post a listing on our board — your offer will be seen by thousands of potential buyers thanks to automatic translation. Go to the Classifieds section.

Exemptions and Exceptions: Can the Payment Be Reduced

The law provides for several situations where a buyer of a second apartment may receive an exemption or a reduced rate of Mas Rehisha. First, if you purchase housing for a child serving in the army (tsimmes bayit, madlikh), and you already own one apartment, the tax may be calculated as for a first purchase, but with an additional bonus. Second, relocation due to work — if you change your place of residence because of a new job and your old apartment remains with you, you may apply for a tax refund after selling the first apartment within a year. Third, heirs: if you inherited a share in an apartment and are buying your first full apartment, it is considered a first one, and the inherited share is not. However, this is a complex legal point, and it is best to consult a lawyer. There are also exemptions for new immigrants (olim hadashim), but these apply only to the first apartment within seven years of repatriation. The second apartment does not qualify for these exemptions unless it is purchased to replace the first one.

Step-by-Step Guide: From Search to Signing the Contract

To avoid overpayment and bureaucratic delays, follow this plan:

1. Assess your tax status. Check whether you or your spouse own any other real estate in Israel or abroad (some international agreements consider foreign property).

2. Calculate the estimated tax. Use official tables or an online calculator. Set aside the tax amount separately from the apartment’s cost to avoid falling into debt.

3. Consult a notary or lawyer. A real estate specialist will help properly execute the transaction and also check the possibility of applying exemptions.

4. Submit a declaration. The tax must be paid within 15 days from the date of signing the contract. The declaration can be submitted online on the tax authority’s website (Madbya).

5. If you are selling your first apartment, apply for a refund of the overpaid tax within 30 days after the sale.

And remember: on our website, you can post a listing to sell your old apartment, and it will be automatically translated into four languages — Russian, Hebrew, English, and Arabic. This will increase the number of potential buyers several times over. Visit the Real Estate section and start selling right now.

How a Translation Platform Simplifies the Transaction

Tax on purchasing a second property (Mas Rehisha) is just one aspect of Israel’s complex market. To ensure a smooth transaction, it is important to find a buyer or seller who speaks your language as quickly as possible. Our free classified ads board solves this problem: every listing you publish in the Real Estate, Classifieds, or Services categories is automatically translated into English, Russian, Arabic, and Hebrew. This means your offer will be seen not only by Russian-speaking users but also by Arabs, English-speaking immigrants, and native Israelis. This increases competition among buyers, allowing you to sell property faster and avoid double tax burdens. Additionally, the platform has special filters for price, area, and transaction type, saving time when searching. For example, if you want to buy a second apartment in Tel Aviv, simply enter the parameters into the search, and the system will show results only in your language. Registration and posting listings are completely free. Don’t delay — create your listing today and take advantage of multilingual reach.

In conclusion, understanding the rules of Mas Rehisha and planning the transaction wisely can save you tens of thousands of shekels. And our service, with automatic translation of listings into four languages, will make the search and sale process as fast and convenient as possible. If you need advice or want to post a listing, follow the links: Real Estate, Classifieds, Jobs, Services, Cars. Happy deals!