Free Transfer Between Spouses in Israel

FREE TRANSFER BETWEEN SPOUSES
According to the law as it exists today, it is possible to transfer a real estate right without consideration, i.e., transfer as a gift from an individual to a relative and enjoy an exemption from praise tax. In the case of purchase tax when transferring without consideration, the recipient of the transfer should pay only one third of the purchase tax he would have been required to pay if he had purchased the property according to Israeli Law - the apartment in money, in accordance with the fixed and known steps of purchase tax at the time of transfer of rights. The transfer of a real estate property as a gift to a relative is sometimes used as a tax haven and in order to prevent tricks and tax exercises intended for the transfer of apartments without consideration in order to sell them later exempt from praise tax, as part of the law.
WHEN SHOULD YOU MAKE A FREE TRANSFER TO A RELATIVE - A SPOUSE?
A free transfer to a spouse or other relative may provide a significant discount or full exemption from paying tax to the gift giver - the transferor of the apartment in several situations:
Anyone who owns a single apartment and is interested in buying another apartment according to a calculation of reduced purchase tax in accordance with the tax brackets of a single apartment.
According to the Israel law, the owner of an apartment who purchases another apartment will be required to pay purchase tax at a rate of 5% or more, depending on the additional apartment tax brackets and not according to the tax brackets of a single apartment.
TRANSFERRING AN APARTMENT WITHOUT CONSIDERATION TO A SPOUSE - THE IDEAL EXEMPTION
Free transfer between spouses is considered particularly lucrative which gives both parties to the transaction an ideal exemption and this is because they both enjoy a full exemption from paying the tax, both praise tax and purchase tax. It is important to note that the exemption will only apply in cases where both spouses live in the same apartment in question in the transfer transaction. In the case of an additional apartment where the spouses do not live permanently, the spouses will have to pay purchase tax at the rate of one-third of ordinary purchase tax.
The transfer of the apartment without consideration can take place at two points in time:
Transferring an apartment without consideration before purchasing another apartment may be a wise and lucrative step that will allow you to enjoy benefits, discounts and even a full exemption from purchase tax calculated according to the tax brackets of a single apartment in two time points:
Transfer without consideration to a spouse after purchasing another apartment -
After purchasing the additional apartment, the transferor will be entitled to and will be able to enjoy purchase tax calculated according to the levels of a single apartment, if he undertakes to transfer or sell the apartment when reporting the additional apartment. The first is owned by him within the period of time prescribed by law, when today it is 24 months.
THE IMPORTANCE AND BENEFITS OF OBTAINING LEGAL ASSISTANCE FROM A REAL ESTATE ATTORNEY
Shimon Hahn is a lawyer and notary with rich knowledge and experience in the field of civil-commercial law and real estate. The firm includes a team of leading and experienced lawyers and attorneys who will accompany and guide you on how to conduct various real estate transactions and transfer without consideration between spouses and relatives. Legal aid is essential and helpful in order to manage the transaction in a professional manner while safeguarding the interests that are important to you and in order to ensure the full realization of your rights. Legal assistance includes providing a range of services including: drafting and drafting an application for transfer and registration of real estate rights in the registry, dealing with various bureaucratic difficulties in the most effective way, proper tax planning, utilization of exemptions and discounts and more. The legal advice and advice provided by an expert real estate lawyer with the appropriate knowledge and experience is helpful, important and provides many benefits because the lawyer who accompanies you is familiar with the procedures in the various bureaus and is well acquainted with the application process and working methods. Professional representation provided by an expert real estate lawyer who is experienced in real estate transactions in general and in particular in transfer transactions without consideration will protect the interests and rights that are important to you, shorten times and save costs. We are at your service with any question, request and request and we will be happy to provide you with a complete answer to every need until the transaction is completed in the smoothest and most successful way.
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