In Israel, local tax is not imposed on income. Nevertheless, real estate owners must pay taxes to the local authority (in this case, the Tel Aviv-Yafo Municipality). The “Arnona” Municipal Tax is collected according to the area of the dwelling, whether residential or commercial.
The final Arnona payment each real estate owner is obliged to pay is tolled according to the dwelling’s size (per square meter). Each city’s local authority determines the classification of buildings and neighborhood zoning for the purpose of calculating the municipal tax rate. Therefore, municipal tax rates vary from neighborhood to neighborhood.
By law, the duty to pay property tax applies to the property holder.
Each property has a holder. The holder shall be regarded as any individual with the closest linkage to the property.
As a rule, the property owner shall be regarded as the individual who has the closest linkage to the property, unless another individual has a closer linkage, for example: a lessee for a period of at least 12 months, a tenant paying key money, and even an invader, under the condition that a written notice is submitted to the Municipality.
By law, the property holder is required to pay property tax to the Municipality.
The holder of a residential apartment is also entitled to various services and rights, for example: property tax discounts, which are granted based on pre-defined criteria, parking stickers for city residents, registration to schools and day-care institutions, membership in the DigiTel Club, and more.
Please note that as long as a written notice is not submitted to the Municipality as outlined above, the duty to pay property tax debts will apply to the holder registered in the municipal records, even after they leave the property.