|
|||
---|---|---|---|
Tax Alert No. 11
13.7.2011
International taxation - Incentives for Building Rental HousingRental housing is an essential social and economic goal, and it is for a good reason that the Israeli legislator wishes to encourage this sector. Chapter 7-1 of The Law of Encouragement of Capital Investment provides for tax benefits to encourage the establishment and operation of buildings comprising of rental apartments (hereinafter: “Rental Apartments Building“). Following is a review of tax benefits available with respect to new rental apartments buildings, e.g. such building approved as of January 1, 2009:
In order to qualify for such benefits, a rental apartments building has to meet certain conditions. Those include a minimal rented area, minimal rental period and compliance with monthly rent income limit.Recently, the Investment Center Administration has issued an update regarding the conditions that have to be met as follows:
The new changes provide for tax benefits with respect to buildings and offer the possibility to receive benefits or rental income with respect to apartments in the center of the country, thus turning this law into an attractive investment option.
בכבוד רב,
|