In Israel the tax law treats you, your spouse, and your children under 18 as one buyer, called the family unit. So if your spouse or your minor child already owns a home, the apartment you buy is usually counted as a second home, not a first home. That can push your purchase tax from the cheap single-home brackets up to the flat 8% to 10% investor rate.
Fast facts (checked 15 June 2026, confirm before you sign):
- The rule: spouse (including a common-law partner) plus children under 18 are treated as a single buyer for purchase tax (Mas Rechisha) and capital gains tax (Mas Shevach). One home owned by any of them can count against all of them.
- What it costs: a single/only home is taxed 0% up to 1,978,745 NIS, then 3.5%, 5%, 8%, 10%. An additional property is taxed 8% up to 6,055,070 NIS and 10% above (rates frozen to 31 December 2026).
- Children: a home bought “in your minor child’s name” is treated as yours. Once a child turns 18, they become their own family unit.
- Main exceptions: a spouse you are genuinely separated from, married children under 18, orphaned children, and a real (not fake) property-separation or prenuptial agreement kept up during the marriage.
- Big risk: a property you forgot your spouse owns can wipe out the 0% first band. Our worked example below shows a 172,756 NIS swing on one apartment.
This page answers one question: how a spouse’s or a child’s property affects your first-home status. For who counts as a resident at all, see how buyer status works in Israel, and for the wider picture start at our Israel property investment hub.
Does my spouse’s apartment count against my first-home status?
Yes, almost always. The Israel Tax Authority treats a married or common-law couple as one family unit, so a home owned by either spouse counts for both. It does not matter whose name is on the title (Tabu) of the new apartment. If your partner already owns a residential apartment anywhere in Israel, your purchase is usually an “additional property” and loses the cheap single-home brackets, even if you personally have never owned a home.
This matters because the gap between the two tax tracks is large. The single/only-home track starts at 0% and only climbs slowly. The additional-property track starts at 8% from the first shekel. According to Kol Zchut’s purchase tax tables (as-of 31 March 2026), the investor rate is 8% up to 6,055,070 NIS and 10% above that. Tax figures change, so verify the current brackets before you commit.
Worked example: the discount a spouse’s flat can cost you (our own calculation)
Say you buy an apartment for 2,300,000 NIS. Here is the math both ways, using the frozen 2026 brackets from the fact sources above. This is our own worked example, not a quote.
| Step | Treated as your only home | Treated as additional (spouse owns one) |
|---|---|---|
| First 1,978,745 NIS | 0% = 0 NIS | 8% = 158,300 NIS |
| Next 321,255 NIS (up to 2,300,000) | 3.5% = 11,244 NIS | 8% = 25,700 NIS |
| Total purchase tax | 11,244 NIS | 184,000 NIS |
The difference is 184,000 – 11,244 = 172,756 NIS. That is the price of forgetting that your spouse’s name is on a flat somewhere. Same apartment, same family, one extra property in the background, and the tax is roughly 16 times higher.
Can I put the apartment in my minor child’s name to keep the first-home rate?
No. A home bought in the name of a child under 18 is treated as if you, the parent, bought it. The law folds children under 18 into the parents’ family unit, so the child’s apartment is your apartment for both purchase tax and capital gains tax. You cannot use a young child to claim a fresh 0% first-home band that the family has already used.
The flip side also bites: if you put a home in your minor child’s name and later buy your own home, the child’s property counts against your purchase too, because it sits inside the same family unit.
Worked example: the minor-child shortcut that backfires (our own calculation)
Parents already own their family home. They want to buy a small apartment for 1,800,000 NIS and register it to their 10-year-old, hoping for the 0% band (since 1,800,000 NIS is under the 1,978,745 NIS single-home threshold).
- What they hoped: 0% on 1,800,000 NIS = 0 NIS tax.
- What actually happens: the child is under 18, so this is the family’s second home. Investor rate 8% × 1,800,000 = 144,000 NIS.
The “smart” structure costs 144,000 NIS instead of zero. The math does not care whose name is on the deed. Confirm any name-on-title plan with a licensed Israeli tax lawyer before you sign anything.
When does a spouse’s property NOT count against me?
There are real exceptions, but they are narrow and the Tax Authority checks them closely. A spouse’s apartment may be ignored when the couple are genuinely living apart, or when there is a true property-separation (prenuptial) agreement.
- Genuine separation: a spouse who actually lives separately is not always lumped in. A short cooling-off period or a paper-only split will not pass.
- Property already owned before the marriage, plus a real separation agreement: if each partner kept their own real estate separate, signed a property-separation or prenuptial agreement, and actually kept that agreement alive during the marriage (it is not artificial and not abandoned), the homes can be treated as separate. This holds even if the couple share a household.
- Children’s situations: married children under 18 and orphaned children are treated as their own units, not folded into the parents.
- Child turns 18: once a child is 18, they are a separate family unit and their property no longer counts against the parents (and the parents’ homes no longer count against the child).
These carve-outs are fact-heavy. A prenup that exists only on paper, or that the couple ignored in daily life, will usually be rejected. Get a licensed Israeli tax lawyer to confirm whether your situation truly qualifies before you rely on an exception.
How is the family-unit rule different for foreign buyers and new immigrants?
The family-unit rule itself does not change for foreigners, but the starting tax track often does. Most foreign residents are taxed on the investor track (8% from the first shekel) even on a first Israeli home, so the single-home brackets we discuss here may not apply to them in the first place. See whether a foreigner can own property in Israel and how Americans buy property in Israel for the residency side of this.
New immigrants (olim) get their own reduced track for a single home within a window of one year before to seven years after aliyah, but the family unit is still tested: a spouse’s existing apartment can affect the benefit. If you are planning aliyah, read buying in Israel as an oleh hadash for how the immigrant brackets and timing work alongside this rule.
Quick checklist before you claim first-home status
- List every residential property owned by you, your spouse or common-law partner, and each child under 18, anywhere in Israel.
- If anyone in that list owns a home, assume your purchase is taxed on the additional-property track until a lawyer confirms otherwise.
- Do not register a home in a minor child’s name to chase the first-home rate. It is treated as yours.
- If you rely on a separation or prenuptial agreement, gather proof it is real and was kept up over time.
- Check whether a child turning 18 soon changes the picture before you set a purchase date.
- Run your exact price through the current frozen brackets, then confirm the rate with a licensed Israeli tax lawyer or mortgage advisor.
What is the bottom line on the family-unit rule?
The family-unit rule means your first-home tax status is decided by your whole household, not just your name on the deed. One apartment owned by a spouse or a minor child can turn a 0% first band into an 8% investor charge, a swing that ran to 172,756 NIS in our worked example above. The exceptions (real separation, genuine prenuptial agreements, children over 18) exist but are tested hard, so do not assume one applies.
Your next step: before you sign anything, map every property your household owns and get the exact rate confirmed in writing. Talk to the Semerenko Group team and we will help you check your family-unit position and connect you with the right tax advisor.
By the Semerenko Group research desk. Reviewed by the Semerenko Group brokerage team. Last updated 15 June 2026. This is general information, not tax or legal advice; purchase tax and capital gains rules change and have fine print, so confirm your situation with a licensed Israeli tax lawyer or mortgage advisor before you act.
Sources
- Kol Zchut: purchase tax calculation and brackets
- PwC Israel: individual income and property tax overview
- Calcalist: oleh purchase-tax reform (single-home track)
Common questions
Does my spouse’s apartment really count against my first-home status in Israel?
Yes, in most cases. The Israel Tax Authority treats a married or common-law couple as one family unit, so a home owned by either spouse counts for both. Even if the new apartment is in your name only, your purchase is usually taxed as an additional property (8% from the first shekel) rather than at the 0% single-home band. Confirm your case with a licensed Israeli tax lawyer.
Can I buy an apartment in my minor child’s name to get the first-home tax rate?
No. A home bought in the name of a child under 18 is treated as bought by the parents, because children under 18 are part of the parents’ family unit. You cannot use a young child to claim a fresh 0% first-home band the family has already used. In one worked example this mistake cost 144,000 NIS in purchase tax instead of zero.
When does a spouse’s property not count against me?
Mainly in narrow cases: a spouse you are genuinely living apart from, or property each partner owned before marriage that is kept separate under a real, actively maintained prenuptial or property-separation agreement. Married children under 18 and orphaned children are also treated separately. These exceptions are checked closely, so a paper-only arrangement will usually be rejected.
What happens when my child turns 18?
Once a child turns 18, they are treated as their own family unit. From that point their property no longer counts against the parents’ first-home status, and the parents’ homes no longer count against the child. If a child is close to 18, the timing of a purchase can change which family unit a property belongs to, so check before you set a closing date.
