What are the deadlines for filing a purchase tax declaration and paying the tax in Israel, and what happens if a buyer misses them?

Both deadlines apply to every purchase of Israeli real estate, whatever the buyer's nationality or residency. The declaration sets out the property, the price, the buyer's details and the buyer's own calculation of the tax (a self-assessment). The clock starts on the date the binding agreement is signed, not on payment of the price, delivery of the keys or registration of a mortgage. Once the tax is paid, the Israel Tax Authority issues the certificate that the Land Registry requires before it registers the buyer in the title records. The Director may examine the self-assessment within 8 months of the declaration (Section 78(b)); if an assessment is issued, any balance is due within 15 days of the assessment notice (Section 91(a)).

Unpaid tax carries linkage and interest under Section 94 of the same law, failing to file a declaration can lead to a penalty under Section 94A, and a further late-payment penalty applies once an assessment becomes final (Section 94B). For a NIS 3 million property with NIS 240,000 in purchase tax, even a short delay adds cost. Foreign buyers who sign contracts remotely through an Israeli attorney should confirm in their engagement letter that the attorney will file the declaration within 30 days and arrange payment within 60 days. If a deal collapses after signing, a cancellation declaration should still be filed to document that no tax event materialized. Note that the ITA maintains an online portal for declarations but non-residents typically need a local attorney to submit due to digital signature requirements.

From the full guide: Purchase Tax in Israel for Foreigners and New Immigrants: Rates, Exemptions and Process

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