Is gifting property in Israel tax-free?

No. Gifting property in Israel triggers two potential taxes: purchase tax (mas rechisha) payable by the recipient, and betterment tax (mas shevach) payable by the donor on any appreciation in the property's value. However, purchase tax on a gift to a relative is reduced to one third of the ordinary tax, and certain betterment tax exemptions may apply depending on the donor's circumstances.