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You are selling your apartment in Israel, the deal is signed, and the municipality suddenly claims several hundred thousand shekels. It is not a mistake: it is the Heitel Hashbaha<\/strong>, the betterment levy, one of the most poorly anticipated costs of an Israeli property sale. In 2026, with planning schemes multiplying, it affects a growing number of foreign owners.<\/p>\n The Heitel Hashbaha (\u05d4\u05d9\u05d8\u05dc \u05d4\u05e9\u05d1\u05d7\u05d4)<\/strong> is a levy collected by the local planning committee (Vaada Mekomit (\u05d5\u05e2\u05d3\u05d4 \u05de\u05e7\u05d5\u05de\u05d9\u05ea))<\/strong>, not by the national tax authority. It captures the owner’s enrichment when a planning decision \u2014 a new scheme, a relief, a change of designation \u2014 increases the value of the property.<\/p>\n Two features make it formidable:<\/p>\n Do not confuse it with Mas Shevah (\u05de\u05e1 \u05e9\u05d1\u05d7)<\/strong> (capital gains tax, 25% of the actual gain, paid to the State). Both can apply to the same sale.<\/p>\n The triggering event is the approval of the scheme. Payment, however, is deferred until the “realisation of rights” (Mimoush Zchuyot (\u05de\u05d9\u05de\u05d5\u05e9 \u05d6\u05db\u05d5\u05d9\u05d5\u05ea))<\/strong>, that is:<\/p>\n This is why the seller is the natural debtor. In practice, the Tabu (\u05d8\u05d0\u05d1\u05d5)<\/strong> will not register the transfer of ownership without the municipal certificate (Ishur Iriya (\u05d0\u05d9\u05e9\u05d5\u05e8 \u05e2\u05d9\u05e8\u05d9\u05d9\u05d4)<\/strong>), which is issued only once payment is made.<\/p>\n Several developments converge:<\/p>\n The result: owners who never asked for anything find themselves sitting on building rights whose value they will have to share with the municipality the day they sell.<\/p>\n The Third Addendum to the Planning and Building Law (\u05d4\u05ea\u05d5\u05e1\u05e4\u05ea \u05d4\u05e9\u05dc\u05d9\u05e9\u05d9\u05ea \u05dc\u05d7\u05d5\u05e7 \u05d4\u05ea\u05db\u05e0\u05d5\u05df \u05d5\u05d4\u05d1\u05e0\u05d9\u05d9\u05d4)<\/strong> sets out several exemptions. The most useful for a private owner:<\/p>\n These exemptions are never automatic: they require a reasoned and documented application.<\/p>\n The assessment notice rests on a valuation commissioned by the municipality. The owner is not bound to accept it. Two main routes are available:<\/p>\n Gaps between the municipal valuation and an independent one are frequently significant. Because the appeal deadlines are short, the response must be immediate.<\/p>\n The Heitel Hashbaha is a technical levy, sitting at the border of planning law and taxation. It is dealt with well before signature: by identifying the schemes applicable to the plot, quantifying the real exposure, checking which exemptions can be relied on, and clearly allocating the burden between seller and buyer in the contract.<\/p>\n Discovering this levy after signature means losing every negotiating lever \u2014 and sometimes seeing the sale blocked for want of a municipal certificate.<\/p>\n It is with this in mind that the Firm ABITBOL & ASSOCIES, drawing on its expertise in Israeli and international real estate law, supports its clients at every stage of their sale, from the analysis of building rights through to challenging the municipal assessment. Our lawyers ensure that your interests are protected and that every step is carried out in complete security.<\/strong><\/p>\n 13 Av Hubert Germain \u2013 Paris 16\u1d49 13 rue Shimon ben Shetah, 9414713, J\u00e9rusalemI. What exactly is it?<\/h3>\n
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II. When does it become payable?<\/h3>\n
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III. Why this matters in 2026<\/h3>\n
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IV. Exemptions: what the law provides<\/h3>\n
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V. Challenging the assessment: a real lever<\/h3>\n
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Conclusion \u2013 Why work with a lawyer specialised in Israeli real estate taxation?<\/h3>\n
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