Property Sale Agreements · Legal briefing

Sole Residence Sale: Tax Relief Conditions

By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:

The practical dilemma

You sell what you consider your only flat and expect a full land-appreciation-tax exemption. Why might an assessment still arise?

The legal position

Section 49B(2) relief is conditional: the property must qualify, satisfy the sole-residence rules and generally have been held for at least 18 months after becoming a residence, alongside other conditions. Section 49C contains exceptions for certain shares in other properties and inherited homes. The family unit, separate-property arrangements, previous sales and current exemption ceiling also matter. A pre-marital property does not necessarily eliminate every entitlement. Official source 1

Your next step

Prepare details of both spouses’ rights, inheritances, acquisition dates and previous sales. Calculate the tax before pricing and signing, comparing exemption and other available calculations. Do not rely solely on the number of registered properties or outdated ceilings.