The number of owners of nine or more apartments in Israel has increased by 20% in two years

This was reported by the economic publication Globes, emphasizing that during the war the number of real estate investors increased much faster than the number of owners of a single home. The most noticeable growth was recorded among the so-called “apartment collectors” – people who own nine or more properties.

Previously, the Tax Administration determined that renting out more than ten apartments is considered an entrepreneurial activity and is taxed as a business, without applying preferential tax regimes for rental housing.

However, this rule is not unconditional: in some cases, courts continue to determine whether rental income is passive or entrepreneurial. Sometimes renting out a smaller number of apartments may be considered a business activity.

As of last month, there were about 1.77 million households in Israel that own one apartment, and about 424,000 taxpayers own at least two apartments, according to the Tax Administration.