Knesset Expands Tax Benefits for New Immigrants Purchasing Homes.
On Monday, the Knesset approved an expansion of tax benefits for new citizens buying their first homes in Israel. This decision comes amid a surge in immigration driven by rising antisemitism worldwide.
The new regulations offer full exemption from purchase tax on first homes valued up to 1.98 million shekels (approximately $530,000) for immigrants arriving under the Law of Return. This benefit mirrors the existing tax exemption available to all first-time homebuyers in Israel.
For homes valued between 1.98 million and 6 million shekels ($1.61 million), immigrants will pay a reduced tax rate of 0.5%. Properties priced above this threshold will incur the same tax rates as those for veteran citizens—8% for homes up to 20 million shekels ($5.4 million) and 10% for homes exceeding that amount.
Previously, new immigrants faced a 0.5% purchase tax for properties under 1.98 million shekels and a 5% tax for transactions above this limit, regardless of whether it was their first home.
The Knesset noted that the new benefits will apply from the year before the immigrant’s arrival and continue for up to seven years afterward.
With the updated regulations, an immigrant purchasing a home valued at 4.1 million shekels ($1.1 million) will only pay around 10,000 shekels ($2,690) in tax, while a veteran citizen would pay approximately 100,000 shekels ($26,900).
Aliyah and Integration Minister Ofir Sofer expressed support for the new policy, stating, “This is good news that will help many immigrants settle in Israel and encourage interest in immigration.” He added that interest in moving to Israel has increased since the onset of the war.
Avichai Kahane, the ministry’s director-general, highlighted the opportunity presented by this initiative, noting, “We see many families wanting to immigrate to Israel due to the rise of antisemitism.”
Finance Minister Bezalel Smotrich emphasized the need for the country to facilitate the return of immigrants during these challenging times. “Today, we took another important step for the immigrants and for the State of Israel,” he stated.
Since the Hamas attacks in southern Israel on October 7, around 22,000 individuals have immigrated to Israel, according to recent figures. Interest in immigration from France has surged over 500% since the start of the war in Gaza, with nearly 6,500 people initiating case files, compared to just over 1,000 during the same period last year.