Ahead of Israel’s Memorial Day, the Minister of Finance, Bezalel Smotrich, published for public comment an amendment to the real estate tax regulations that expands the eligibility for children who have lost a parent during combat for a tax benefit in the purchase of a residential apartment.
In accordance with the amendment, children of IDF soldiers who perished in Israel's military operations and families of victims of terrorist attacks will be able to exercise their right to a reduced purchase tax rate when purchasing a residential apartment up to the age of 50. In accordance with the benefit, members of bereaved families who purchase a residential apartment worth up to 2.5 million NIS will not pay purchase tax on the portion of the value up to 1,919,155 NIS and will pay 0.5%, instead of 3.5%, on the portion of the value above this amount.
Members of bereaved families who purchase a residential apartment worth over 2.5 million NIS will pay a purchase tax at a rate of 0.5% on the entire amount. Also, members of bereaved families purchase an additional apartment during their lifetime and will only pay purchase tax at a rate of 0.5% on the full amount.
Minister Smotrich said after the announcement of his ministry: "There is nothing that can comfort and fill the huge hole that has opened in the hearts of the families who lost their most precious, but it is our duty to try to make it easier for them. We made a decision that constitutes additional support for the bereaved families. Expanding the eligibility of orphans of Israel's martyrs and victims of hostilities for a tax benefit in the purchase of residential apartments is further proof of the connection and deep commitment of the people of Israel to these families," added Smotrich.
Tami Shelah, the widow of Lt. Col. Udi Shelah and chairman of the IDF Widows and Orphans Organization, responded: "I congratulate the Minister of Finance for the important decision that we have been waiting for for many years. There is no reason for the IDF orphans to be a discriminated group among the bereaved family and this step is one in the right direction to end their longstanding discrimination. We will continue to act on all levels in order to promote further changes to improve the state's support for the IDF orphans until they receive full equality among the bereaved family."