Improvement Tax
The Improvement Tax is paid to the local Planning and Construction Committee in cases where there was an increase in the value of a property due to the approval of a new plan, or the granting of an easement or approval for non-standard of the property. This tax is in the amount of 50% of the propertys increased value attributable to the plans approval or granting of the easement.
The Improvement Tax is levied against the landowner. If the land is leased for a period of 25 years or more, the tax is payable by the lessee. Improvement Tax must be paid if the property is sold or upon receipt of a building permit. In addition, the property owner is allowed to pay even before the property is sold or built on, upon approval of the plan, or granting of the easement, or upon the non-standard use of the property that resulted in the increased value.

In the absence of payment of the Improvement Tax, it is neither possible to transfer the rights in the Land Registry Office to the name of the buyer, nor to receive a permit to build on the property. Therefore, it is incumbent upon a property buyer to ensure that the seller in fact took care of any debts arising out of the Improvement Tax
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