Yes, you stay liable for arnona during a major renovation unless you qualify for one of two reliefs: a time-limited empty-property discount, or an exemption for a building that is genuinely unfit for use. The full guide to what arnona is, who pays it and the standard discounts is in our arnona wiki entry; this page answers one question: what happens to the bill while your home or cottage is being rebuilt and nobody can live in it.
Do you still pay arnona while the home is being renovated?
Yes, as a rule you do, because arnona is charged on the holder or user of a property and renovating is not automatic grounds for relief. The exact rules come from the Municipal Corporations Ordinance and each municipality’s by-laws, so they differ from city to city.
Which relief might apply: the empty-property discount or the unfit-for-use exemption?
There are two separate reliefs, and which one fits depends on the state of the building.
- Empty-property discount. For a property that is completely empty of any person and object and is not used. Each city council decides whether to offer it and at what rate. The national ceilings, in regulation 13 of the Arrangements in the State Economy (Arnona Discount) Regulations 5753-1993, apply over a cumulative total of up to 36 months for as long as the ownership does not change: up to 100% for the first 6 months, up to 66.66% for months 7 to 12, and up to 50% for the rest of the period. Owners and tenants can both claim it, and only empty spells of at least 30 days in a row count towards the total.
- Unfit-for-use exemption. Section 330 applies where a building is destroyed or damaged so severely that it cannot be occupied and is not occupied, with written notice and proof. The statutory sequence is generally three years exempt, then five years at the minimum applicable rate, followed by a further exemption after a renewed notice if it remains unfit. The periods attach to the property rather than restarting with each owner or tenant.
How do you apply, and what evidence does the city ask for?
You apply in writing to the arnona department of your local municipality. Typical evidence is:
- photographs of the gutted or empty property;
- copies of the construction permits (see how building permits work);
- a letter from your architect or contractor describing the scope and timeline of the works.
The municipality may inspect before it approves. The rules for the works themselves are in our guide to restoration and renovation in Israel.
If you received the empty-property discount, tell the municipality, in the way it asks, 7 days before you start using the property again once the works end. Without that notice, regulation 13 lets the city cancel the discount for the last continuous period the property stood empty.
Is the relief backdated, and when should you apply?
Notify the municipality in writing promptly once the relevant qualifying condition exists, with dated evidence. The relief generally starts from written notification after eligibility is established; applying before the property qualifies does not itself establish an exemption. Confirm the local application procedure.
Frequently asked questions
Am I liable for arnona if the house is empty during the works?
Generally yes, until the municipality approves a relief. An empty property can qualify for a time-limited discount, but only after you claim it.
How long does the empty-property discount last?
Up to 36 months in total while the ownership stays the same, counting only empty spells of at least 30 days in a row, if your city offers it at all. The ceiling is highest in the first 6 months and lower after that, and each city sets its own rates within those ceilings.
Can I get a longer exemption for a building that cannot be lived in?
Possibly, if the building is genuinely unfit for use, with proof and municipal approval.
Is the relief backdated to when the works started?
Generally no. For a renovation it applies from the date you submit the claim.
Related pages
- Arnona explained: who pays, from when, and the discounts
- Restoration and renovation in Israel
- Building permits and illegal construction
- Settling your Jerusalem arnona bill from the U.S.
- Israel rental listings and renting guidance
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This is general information, not legal or tax advice; confirm with a licensed professional.
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