Immigration9/18/2026

Construction Delay Did Not Deprive New Immigrant of Purchase Tax Benefit

The Appeals Committee in Jerusalem exempted a new immigrant from purchase tax on an apartment in Beit Shemesh. In the special circumstances, the eligibility period was calculated from the apartment’s actual handover date, and the delay in immigrating was deemed sufficiently justified.

Key facts

•Case: ו"ע 22899-10-22
•Body: Appeals Committee in Jerusalem
•Contract: September 2017
•Apartment handover: January 2022
•Assessed tax: 82,400 shekels
•Costs and attorney’s fees: 18,000 shekels

Apartment Purchased Before Immigration

A 73-year-old widow from the United States purchased an apartment under construction in Beit Shemesh in September 2017 for 1,030,000 shekels. The home was scheduled to be handed over a year and a half later, but construction was completed only in January 2022, mainly because of the coronavirus pandemic. The buyer immigrated to Israel in December 2020 and rented a home near her family until she received the keys.

Dispute With the Tax Authority

The Jerusalem Real Estate Taxation Director calculated the statutory period from the date of the contract—September 2017. Because the woman became an Israeli resident more than two years after the purchase, the authority denied her the benefit and assessed 82,400 shekels in tax. She filed an appeal in October 2022.

Why the Committee Sided With the Buyer

Judge Avigdor Dorot accepted the argument that, in this case, the period should be calculated from the completion of construction and the apartment’s actual handover. In addition, the explanations for the delay in immigrating, primarily those related to the coronavirus crisis, were recognized as a “sufficient reason” for extending the period. The benefit was granted under Section 9 of the Real Estate Taxation (Appreciation and Purchase) Law.

Tax to Be Refunded

The committee granted the appeal and found the woman fully exempt from tax: the apartment cost 1,030,000 shekels, while the stated benefit threshold was 1,978,745 shekels. The Taxation Director was ordered to refund the tax already paid and pay 18,000 shekels in legal costs and attorney’s fees.

What this means for you

The ruling shows that when a home under construction is purchased, a delay in its handover may be considered in determining the eligibility period for a new immigrant’s tax benefit. In special circumstances, the period may be calculated from receipt of the apartment, while objective reasons for a delay in immigrating may serve as grounds for extending it. The committee’s conclusion was based on the specific circumstances of this case.

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Case analysis based on court rulings