Tax on homes bought for investment to rise

30 April 2015, 6:27 pm

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The purchase tax on new homes bought for investment will be raised to 20-25 percent, according to the coalition agreement between Kulanu and Likud, Ynet reports.

Currently, purchase tax on homes bought for investment stands at 5%-10%. The tax will be applied from the first shekel, and not as it is currently, imposed only above a threshold amount.

Likud also agreed to another of Kulanu’s demands, namely that all housing companies working under the wing of the Housing Ministry will build at least 700 homes for public housing every year.

Contractors that will promise to sell homes below the market price will be able to purchase plots of land at a significantly lower price.