Tel Aviv: No increase in housing tax for Airbnb apartments! "
The offensive of the municipality of Tel Aviv against seasonal rentals Airbnb type aborted.
"There was talk of an increase far greater than the rates in force in housing tax."
The Interior Ministry has rejected the tariff grid of the city hall of Tel Aviv for 2019 providing for a significant increase in the acquisition tax for apartments rented most of the year for seasonal rentals, especially on sites such as According to the terms of this tariff schedule which had been validated at the end of January 2019 by the Monetary Commission, the average price per square meter in terms of housing tax - "Arnonah for the Hebrews - was to be 52.20 ILS / year, this which remains relatively low compared to what is practiced throughout the national territory.
However, the municipality had taken care to provide for a special pricing in the paragraph relating to the housing tax for apartment buildings concerning apartments defined as “recreational apartments”; for the latter, the price per square meter went from 52.20 ILS to 120.90 ILS, an increase of more than 200 %.
Against all expectations, the reactions to such a decision were rather soft and for good reason: while the housing tax would increase by a few thousand shekels, the revenue collected by those renting their apartment / s in the form of seasonal rentals to several tens of thousands of shekels.
This quick calculation explains why no real protest was opposed to this measure supposed to be a game-changer for the vacation rental market.
However, and despite the fact that this measure did not cause a stir, the Interior Ministry decided to reject this first step taken against the "Airbnb apartments".
In a letter addressed to the municipality of Tel Aviv, the Ministry explains its decision because of the lack of clarity in terms of criteria allowing to determine the recreational nature or not of housing on the one hand, but also because of the fact that 'There was talk of an increase far greater than the rates in force in terms of housing tax.
At this stage, the Municipality has not given up any reaction.
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