The linear split — see what's exempt
For properties bought before 2014, only the portion of the gain accrued from 1 January 2014 is taxable. The longer you owned it before 2014, the more is exempt. This illustrator shows the split based on your dates:
The non-resident reality
- Rate: 25% on the real (inflation-adjusted) gain, for individuals.
- Single-home exemption — usually not for you. The exemption many Israeli sellers use is generally unavailable to a non-resident, unless you prove you do not own a residence in your country of residence (a 2014 condition).
- Linear method — yes, for you. Non-residents can use the linear calculation: gain accrued up to 31 Dec 2013 is exempt; only the post-2014 portion is taxed at 25%. For long-held apartments this is a large saving.
- Withholding at closing. The buyer withholds a portion of the price and remits it to the Israel Tax Authority on your account; you reconcile the actual tax in the filing.
- Betterment levy is separate. Any Heitel Hashbacha (50% of value added by a planning decision) is paid to the local committee, not the national tax authority — a different charge from Mas Shevach.
Two things the 2026 figures do not say
The ceilings are frozen, not current. Israeli tax amounts are normally re-indexed to inflation each year. On 16 December 2024 the Knesset Finance Committee approved a freeze, announced jointly by the Israel Tax Authority and the Ministry of Finance: for 2025, 2026 and 2027 no adjustment is made for the index changes of 2024 to 2026. The announcement names the mas shevach exemption ceiling on the sale of a single apartment among the frozen amounts, alongside the purchase-tax brackets and the exemption ceiling on rental income. And when indexation resumes in 2028, the restored amounts will not include the 2024 to 2026 index change — so the effect is permanent rather than deferred.
A second surtax arrived in the same law. On top of the existing 3% surtax on taxable income above the surtax threshold — ₪721,560 as at 2024 — an additional 2% applies from 2025 to income not derived from employment or a business, and the announcement names real-estate sales among the income it reaches. A single apartment sale can produce a gain well above that threshold.
Deadlines and withholding — the two numbers sellers miss
The rate is the part everyone looks up. The part that actually catches non-residents out is how fast the clock runs and how much cash the buyer holds back.
You have 30 days to declare
Under section 73(a) of the Real Estate Taxation Law, the seller must file a declaration with the Israel Tax Authority within 30 days of the date of sale — and "date of sale" means the day the contract is signed, not completion or handover. Filing late can trigger a penalty for failure to declare on time. If you are abroad and still assembling documents, 30 days is short: this is the deadline to plan backwards from. You may still see "40 days" in older guides — that was the rule between 2011 and 2016, and it changed on 1 January 2017.
The buyer withholds an advance — on the price, not the gain
The buyer pays an advance (mikdama) directly to the Tax Authority against your account. How much depends on when you bought:
| When the seller acquired the property | Advance withheld |
|---|---|
| Before 7 November 2001 | 15% of the sale price |
| On or after 7 November 2001 | 7.5% of the sale price |
| Seller is a company | 7.5% of the sale price |
It falls due within 30 days of signing, or immediately once the buyer has paid you more than 40% of the price — whichever comes first. It does not apply where the sale itself is exempt from Mas Shevach.
Why this matters more to you than to an Israeli seller. The advance is calculated on the sale price, while the tax is calculated on the real gain. On an apartment held since well before 2014, the linear method can exempt most of the gain — so the tax due may be a small fraction of the advance withheld. The difference is not lost, but it comes back only after the assessment is settled, and you may be waiting on it from abroad while needing the funds elsewhere. Build that gap into your cash-flow plan, and raise it with your representative before signing rather than after.
Inherited or gifted property
Selling an apartment you inherited has its own rules — the original owner's purchase date and cost generally carry over to you, which affects the linear split and any exemption. Inheritance and gifts between relatives are not themselves a taxable "sale," but the eventual sale is. Confirm the details for your case.
Selling — with a licensed professional
This is an independent information resource and free illustrator — not a law or tax firm, and it does not represent sellers. The actual Mas Shevach calculation, exemption eligibility, and filing should be handled by a licensed Israeli professional (lawyer / CPA / licensed tax representative). Tell us about your sale and we'll point you in the right direction.
Get pointed to a licensed professionalFrequently asked questions
What is the capital gains tax rate on selling property in Israel?
For individuals, Mas Shevach is 25% on the real, inflation-adjusted gain. The gain is the sale price minus an indexed cost base and deductible expenses (such as purchase tax paid, agent and legal fees, and capital improvements) — not simply sale price minus purchase price.
Can a non-resident get the single-home capital gains exemption?
Usually not in the standard framework. The single-residence exemption that many Israeli sellers use is generally unavailable to a non-resident — unless the seller proves they do not own a home in their country of residence, a condition added in 2014. Many non-residents instead rely on the linear calculation.
What is the linear calculation and does it apply to non-residents?
For property bought before 1 January 2014, the linear method splits the gain by time: the portion accrued up to 31 December 2013 is exempt, and only the portion accrued from 2014 onward is taxed at 25%. It is available to non-residents and can substantially reduce tax on long-held apartments.
How is the tax collected when I sell?
The buyer withholds a portion of the purchase price at closing and remits it to the Israel Tax Authority on the seller's account. The final tax is determined in the Mas Shevach filing, and any difference is refunded or paid.
How long do I have to report the sale to the Israel Tax Authority?
Thirty days from the date of sale, under section 73(a) of the Real Estate Taxation Law. The date of sale is the day the contract is signed, not the day of completion or handover. Filing after the statutory deadline can trigger a penalty for failure to declare on time, so if you are selling from abroad it is worth preparing the documents before signing rather than after.
How much does the buyer withhold when a non-resident sells?
The buyer pays an advance to the Israel Tax Authority against the seller's account: 15% of the sale price if the seller acquired the property before 7 November 2001, and 7.5% if the seller acquired it on or after that date. A company selling is also 7.5%. The advance falls due within 30 days of signing, or immediately once more than 40% of the price has been paid to the seller, whichever comes first, and it does not apply where the sale is exempt from Mas Shevach. Note that the advance is calculated on the sale price while the tax is calculated on the real gain, so the amount withheld can exceed the tax actually due.
Is the deadline to report a property sale in Israel 30 days or 40 days?
Thirty days. The confusion is genuine and comes from the law's own history: before 2011 the ordinary declaration deadline was 30 days, Amendment 70 unified it to 40 days for transactions from 31 March 2011, and from 1 January 2017 it was shortened again to 30 days. Guides written between those dates — including some still online today — still say 40. The deadline that applies to a sale today is 30 days from the date of sale.
Who actually files the Mas Shevach declaration — me or my lawyer?
Filing is online only. If you are represented by an Israeli lawyer, the lawyer files on your behalf. If you are not represented, you must file it yourself through your personal area on the Israel Tax Authority website — an unrepresented declaration can only be submitted by the seller or buyer personally, not by a friend or relative acting informally. If you are selling from abroad, decide early which of the two routes you are taking, because the 30-day clock starts at signature either way.
Is Mas Shevach the same as the betterment levy?
No. Mas Shevach (capital gains tax) is a national tax on your gain. Heitel Hashbacha (betterment levy) is a separate charge — 50% of the value a planning decision added to the property — paid to the local planning committee. Both can arise on a sale but are calculated and paid separately.
Where these figures come from
Every figure on this page was checked against the primary Israeli sources below, not taken from secondary guides.
- Real Estate Taxation Law (Appreciation and Acquisition) — full text, including section 73 on declarations
- Declaring a sale or purchase of a real estate right — the 30-day deadline and who may file (Kol Zchut)
- Advance payment of Mas Shevach by the buyer — the 15% / 7.5% rates (Kol Zchut)
- Israel Tax Authority & Ministry of Finance — joint announcement of 16 December 2024: indexation of tax-law amounts frozen for 2025–2027, and an additional 2% surtax on non-labour income (Hebrew)
- Israel Tax Authority — declaration form 7000
Sources are in Hebrew — they are the primary Israeli references. Figures were checked against them on 28 July 2026. Rules and thresholds change; verify before acting.
Related guides
Selling is one side of it. These cover the rest.
- Israel purchase tax for foreign buyers — the 8% and 10% brackets, and the freeze on the thresholds
- Rental income tax for non-residents — the three tracks, including the 10% option
- New olim reporting from 2026 — the filing obligation that came in with Amendment 272