Declaration form on the sale and purchase of real estate (form No. 7000)

The description of the service

There are three types of declaration forms, adapted according to the track of the taxation that the seller wishes to apply with regard to the transaction:

• Form No. 7000 – A declaration on the sale of a tax exempt residential apartment that does not include existing or expected construction rights and for which a full exemption from real estate  capital gains tax is requested.
• Form No. 7000B – A declaration on the sale of a right of possession in real estate, the profit from which is subject to income tax assessment and an exemption is requested according to section 50 of the Real Estate Taxation Law (for use by those who sell real estate business inventory such as building contractors and developers).
• Form No. 7002 – A declaration of the sale of a right of possession in real estate or an action in a real estate association that are not suitable for a submission in forms Nos. 7000 or 7000B

Who can apply?

Sellers and purchasers of rights of possession in real estate and those who are acting in a real estate association.

What to attach?

When submitting Form No. 7000, it is required to attach the following documents:

1. A sales contract.
2. A purchase contract.
3. An extract from the land registration bureau.
4. When submitting Form No. 7000B, it is required to attach the following documents:
5. A sales contract.
6. A schedule of payments.
7. An approval of the tax assessing officer according to Section 50 of the Real Estate Taxation Law.

When submitting Form No. 7002, it is required to attach the following documents:

• A sales contract.
• A purchase contract.
• An extract from the land registration bureau.
• A tax self-assessment for the real estate capital gains tax.
• Reference documents about the deductions.
• Accompanying forms if any (for example: a request for spreading it out in payments over a certain period of time of the real estate capital gains tax; a request for the reduction of an advance payment, etc.).

Should the forms be submitted online by a lawyer, an abbreviated signature form signed by the parties and verified by the lawyer must be attached.

THIS SERVICE IS PROVIDED FREE OF CHARGE

How to apply?

Sellers who are represented by a lawyer will submit the declaration online through the lawyer.

Sellers who are not represented are required to submit an online declaration after identifying themselves for digital services.

• A representative lawyer whose age was 66 or older on October 15, 2017 may submit a declaration and accompanying forms manually.
• Sellers and buyers who are not represented and are prevented from reaching the public computer stand due to a medical problem or a lengthy stay abroad, may submit a request to be exempt from the obligation to report online by using form 7100. Each request is reviewed according to its circumstances and therefore it is mandatory to attach supporting documents and references. should the request be approved, the declaration will be received manually.

What happens next?

The regional office to which the declaration was submitted will check the normalcy of its submission. Upon receipt of the declaration, an assessment notice and voucher for payment of the tax self-assessment will be sent. At the same time, the declaration will go through a further assessment by the taxation inspector.

Remarks 

In accordance with the provisions of Section 73(a) of the Real Estate Taxation Law, the seller must submit a declaration within 30 days from the date of the sale.
The declaration must include the following documents:

1. The details of the right of the possession in real estate.
2. The details of the transaction.
3. The consideration which was paid for the sale of the right of the possession in real estate and the date of its sale.
4. The consideration for the purchase of the right of the possession in real estate and the date of its purchase in the past.
5. Expenses which allowed as a deduction.
6. The amount of the real estate capital gains tax and its calculation method. To calculate a tax self-assessment for real estate capital gains tax.
7. Eligibility for tax exemption or a tax discount in accordance with the law.

In accordance with the provisions of Section 73(c) of the Real Estate Taxation Law, the buyer is required to submit a declaration within 30 days of the sale date.

1. The details of the right of the possession in real estate.
2. The details of the transaction.
3. The consideration which was paid for the sale of the right 
4. The amount of the purchase tax and the method of its calculation. For the purchase tax simulator.
5. Eligibility for tax exemption or a tax discount in accordance with purchase tax regulations.

In addition, the buyer is required to declare the details of the means of payment in accordance with the provisions of section 30 of the REDUCTION OF USE OF CASH LAW, 5778 – 2018.
You have at your disposal a detailed guide "Know your rights and obligations" which includes explanatory notes on the rights and obligations of sellers and buyers of rights of the possession in real estate.