Reporting to the Tax Authority 60 Days – Guide 2026

Every real estate transaction in Israel — purchase or sale — requires formal reporting to the Tax Authority within 60 days of signing the contract. This is not a minor clause in the contract — a delay in reporting incurs automatic fines. Here is the complete technical guide.

Who Needs to Report, and What Exactly

Both the buyer and the seller are required to report — the buyer reports for the purpose of calculating the purchase tax, and the seller reports for the purpose of calculating the capital gains tax (or obtaining an exemption). Both reports are submitted using specific forms to the Tax Authority's online "Real Estate Taxation" system.

What are the 60 Days, and Where Do We Start Counting?

The counting begins from the date of signing the binding contract (not from the actual delivery date, nor from the date of registration of rights in the land registry) — a point where many make mistakes, especially in purchases from a contractor where the actual delivery can be years after the signing.

What Happens if the Deadline is Missed?

A delay in reporting incurs an automatic financial penalty, which increases the longer the delay lasts. Additionally, a delay may hinder the completion of the registration of rights in the land registry, creating problems both in obtaining a mortgage and in future transactions involving the property.

What Documents are Required for Reporting

Signed copy of the sale contract
Identification documents of all parties to the transaction
Current land registry extract of the property
Relevant approvals for exemptions or reductions (new immigrant, disabled, single apartment)

Self-Assessment vs. Final Assessment

The reporting within 60 days includes a self-assessment of the transaction's value and the tax resulting from it. The Tax Authority is entitled to review the assessment and issue a corrective assessment if it disagrees with the declared value — therefore, it is important that the assessment is based and supported by documents (contract, appraisal report if available), not just a "round" number.

The Role of the Attorney in the Process

In most transactions, the attorney accompanying the transaction handles the actual reporting to the Tax Authority as part of their services — but the final legal responsibility for meeting the deadline remains with the parties to the transaction, not just the attorney. It is advisable to ensure that the reporting has been completed and to receive written confirmation.

Digital Reporting vs. Physical Submission

Most reports today are submitted through the Tax Authority's online system, allowing for tracking of the processing status and immediate receipt confirmation — but in certain cases (such as complex transactions with multiple rights holders), physical submission or a combination of both is still required.

What Happens in Transactions with Multiple Payment Stages

Even when it comes to a transaction with a staggered payment schedule (such as a purchase from a contractor), the obligation to report within 60 days applies to the entire transaction from the moment of signing, not just to each payment separately — the full value of the contract must be reported at the early stage.

Frequently Asked Questions

What happens if the tax is paid late but reported on time?
Interest for late payment may still apply to the late payment, even if the reporting itself was done on time.

Can an extension be granted for the reporting deadline?
In exceptional and justified cases, an extension can be requested, but it is not automatic and requires a specific request to the Tax Authority.

Is the reporting different between a purchase from a contractor and a second-hand purchase?
The principle is the same (60 days from signing), but the accompanying documents may differ depending on the complexity of the transaction.

Considering Buying or Selling a Property?

View properties for sale in Ma'ale Adumim and Jerusalem, and contact the Merkaz HaNekasim team for personal advice.