Property Gifts & Family Transfers · Legal briefing
Family Property Gifts: Tax & Waiting Periods
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
You plan to gift a flat to a child who will immediately sell it using a sole-residence exemption. Does the proposed sequence qualify?
The legal position
Section 62 relief for a qualifying relative generally defers rather than erases historical appreciation tax. Its relative definition may differ from purchase-tax Regulation 20, which generally provides one-third of ordinary tax subject to conditions. Section 49F includes three- or four-year cooling-off periods, depending on residence and circumstances, and additional rules for minors and gifted funding. An early sale does not automatically attract the maximum tax rate; alternatives must be calculated. Official source 1
Your next step
Review the legal relationship, origin of rights, funding and the recipient’s occupation. Calculate purchase tax and a later sale before signing. Report a genuine gift fully rather than creating an artificial transfer solely for relief.