As a general guide to the costs associated with selling property, the following expenses should be taken into account:
|Mortgage Redemption||Bank charges and redemption costs||If you have a mortgage on your property|
|Land Appreciation Tax||25% of the indexed-linked capital gain less expenses||Israeli tax residents
may be exempt from this tax if selling their only residence and
various other conditions are fulfilled.
For properties purchased prior to 1.1.14, the tax is payable on a linear basis according to the length of time owned, if certain conditions are met.
|Betterment Levy||50% of increase in value||Charged by the local
municipality if permitted improvements have been made to the
property during the period of ownership without planning permission
as part of the validation process on sale.
The levy is also imposed if changes in planning regulations during ownership of the property have increased its value.
|Agent's fees||± 2% + vat (17%)||Usually payable on exchange of contracts|
|Legal Fees||1-1.5% + vat (17%)||Payable on
Fees vary according to the nature of the property (registered/unregistered land, apartment/house, already existing/being built etc.) the structure of the transaction and the sale price, so this is a general guide only.
|Disbursements||₤300 (approx.)||Land Registry and Courier Fees. Obtaining authorisations needed for sale of the property.|
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.