Terms of exemption from taxation

Conditions of exemption from taxation in the execution of eviction transactions

The agreement between the parties to carry out the evacuation and construction transaction will take place after the "determining date", which was set for November 7, 2001.
The apartment that is vacated as part of a construction evacuation deal was used by the occupier for at least two consecutive years prior to the declaration of the compound as a clearing and construction area.
The tenant sells all his rights in the same unit as part of the evacuation of construction.

Against the sale of the vacant unit, the tenant receives another real estate asset. However, if the tenant receives another monetary consideration or an additional unit and whose accumulated value exceeds the determined ceiling, this balance that exceeds the ceiling of the value shall be taxable. Compensation in money only will be subject to full tax. The exemption is for one dwelling only in the evacuation and construction area.
The exemption is granted only for the same alternative apartment that the developer gives the seller as part of a construction evacuation transaction.

The right of the tenant in the alternative apartment shall not be less than the right of the tenant to the entrepreneur.
The unit, which was transferred to the developer as part of a construction evacuation deal, was not accepted by the tenant in a 24-month tax exemption preceding a construction evacuation deal.
If one of the units that vacate the building is not a residential apartment, then the exemption on the unit will apply only if the unit does not constitute a business inventory of the seller. (A residential apartment does not constitute a business inventory).

Eldar Adato specializes in clearing and construction transactions. For advice, please call 03-6968296
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