There are four primary types of property taxes in Israel. The first type of tax is a purchase tax (mas rechisha), which the person who purchases the property is required to pay when purchasing a residential property. The second type of tax is a capital gains tax (mas shevach), which the seller must pay for the property they sold, unless the property is residential and meets certain criteria. The third type of tax is income tax (mas hachnasa), which an individual must pay when receiving money from renters so long as the rental income exceeds a certain amount. While this amount can vary, it is approximately 5,500 NIS.
The fourth type of property tax is municipal tax (arnona), which applies to buildings according to their location in municipal boundaries and based on their size in net square meters. There are discounts or exemptions in a variety of cases, including new immigrants, retirees and physically disabled. Issues related to arnona are under the auspices of the Israeli Ministry of Interior (Misrad HaPanim) and the local municipal authority.