Planning
Israel weighs replacing betterment levies in urban renewal with a developer sales tax
5 November 2026 · Based on Israel Real Estate Center
Benny Arbiv, chair of the National Planning and Building Council, said at the contractors' conference in Eilat that the state is examining replacing betterment levies (heitel hashbacha) with a tax on developers' sales. A contractors' association official warned that about 300,000 apartments in approved pinui-binui (demolish-and-rebuild) plans are not being carried out because they are not economically viable. The head of the accountants' institute estimated that interest rates will not fall in 2027.
Changes to levy rules could affect the economics of urban renewal projects and the pace of new supply. Buyers abroad considering a unit in such a project should check its stage and financing, and plan for rates staying high.
Read the original article (Israel Real Estate Center, in Hebrew) ↗
