Regulation
Tel Aviv Demands Betterment Levy After Siblings Split Three Gifted Apartments
3 November 2026 · Based on Israel Real Estate Center
A brother and sister received three Tel Aviv apartments as a gift from their father and registered them in joint ownership. They later signed an agreement to dissolve the co-ownership of two apartments, each transferring their share in one apartment to the other with no payment. Tel Aviv municipality argued this was a transaction subject to betterment levy (hetel hashbacha), while the siblings argued it was a transfer without consideration.
Transfers of shares between co-owners can trigger municipal betterment levy claims in Tel Aviv. Buyers abroad who hold property jointly or plan to split ownership should check the tax and levy treatment beforehand.
Read the original article (Israel Real Estate Center, in Hebrew) ↗
