It is often said that lawyers are exploitative and unfair people. This office came to erase this stigma. The entire staff there is lovely, and they do their job faithfully. In my case, I dealt with Attorney Hussam Armali, and I must say that I have never met such an honest, decent, and goal-oriented person. Thank you very much from the bottom of my heart 🙏
Tax Calculation Moshav Estate Capital Gains Purchase Tax

Transactions in the agricultural holding seat include not only a purchase or sale price, but also a complex taxation component that includes land application tax, purchase tax and an agreement fee for the ILA. Misunderstanding of taxation can result in losses of hundreds of thousands of shekels.
If you are in a sales phase, it is recommended to read the manual as well.How to Sell an Agricultural Holding in a Moshav
What is Land Appreciation Tax?
Land Appreciation Tax is a tax imposed on the profit generated from the sale of the agricultural holding. The calculation is made according to the difference between the purchase price and the sale price, after various adjustments.
What is a Purchase Tax
A purchase tax is paid by the buyer when purchasing the agricultural holding, and is calculated as a percentage of the transaction value.
Consent fee for Israel Land Authority (ILA)
Consent fees are payment to the ILA when transferring rights. This is one of the most significant components of the transaction ownership.
How to calculate the actual tax
- Determine the value of the agricultural holding
- Calculation of profit
- Exemption and Relief Check
- Calculation of consent fees
Common Mistakes in Tax Calculation
- Wrong valuation
- Non-Exemption Check
- Similar mistakes to tenders as detailed in the articleErrors in the Rami tenders
How to Reduce Taxes
Proper planning of the transaction, use of exemptions and professional legal guidance can significantly reduce the tax.
Recommended to use -Advocate for Agricultural HoldingsFor proper planning.
Summary
The tax aspects of agricultural holding transactions are critical to the success of the transaction. Understanding and proper planning can save significant amounts.
Before reporting to the Tax Authority, it is best to reviewLegal support for land taxation and land appreciation taxExemptions, deductions, and proper deployment can fundamentally change the tax liability.
Practical Conclusion
In an agricultural holding transaction, the tax is not a phase that closes at the end but one of the variables that shape the transaction itself. An error in early taxation planning may make a transaction that looks good on paper a much more expensive move.
- Pre-check land appreciation tax, purchase tax, consent fees and other associated charges.
- You don't rely on a general estimate or someone else's similar transaction.
- The deal is planned so that the contractual structure is suitable for both Israel Land Authority (ILA) and the tax implications.
If your case concerns this issue, it is correct to start with a pageTaxation of Agricultural Holdings and FarmsOr move to the domain pageAgricultural holdings, agricultural moshavim and farms, to see all services, articles and course of action in one place.
Related Legal Services
- Real Estate Taxation and Land Appreciation TaxTax planning, exemptions, and attainments vis-à-vis the Tax Authority.
- Taxation of Agricultural Holdings and FarmsExamining land appreciation tax, purchase tax and associated charges in agricultural holding transactions, intergenerational transfer, sale, split and rights regulation.
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I contacted Karen just to figure out whether it was worth selling a piece of land we inherited or keeping it. She sat down with me and explained the whole picture – rights, taxation, what can be done in the future. She didn’t try to push in a certain direction, and that was the most important thing to me.
Karin Amsalem, a professional and thorough attorney of the highest level! Represented us in the process of selling a plot of land that we won in a tender. This is a complex process that includes registering lease rights in the Land Registry, payments to the Land Registry such as consent fees, refunding subsidies for housing and construction, as well as handling the appreciation tax, which includes many expenses. Karin managed the entire process with professionalism, accuracy and attention to detail, while fully protecting our interests as sellers. Throughout the entire process, we felt that we had someone to trust. Highly recommend her!
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