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Your Taxes: Is a hotel a real estate play in Israel?

Israeli real estate purchases can face up to 10% purchase tax, with anti-avoidance rules also taxing shares in entities whose assets are primarily Israeli property.

  • Israeli Supreme Court ruled hotel company as real estate entity for tax purposes
  • Nitsba Holdings purchased Lexan shares for NIS 285 million in 2015
  • Purchase tax of NIS 17 million assessed against Lexan due to real estate nature

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