In a strange but creative way to increase the supply of residential housing, the Finance Minister Yuval Steinitz is offering an incentive for professionals to sell homes that they purchased to house their practices.
“Currently, 50,000 apartments or more, mostly in central Israel, are used for businesses by dentists, lawyers, and so on. We want to provide strong incentives to sell these properties by 2013 by giving a full exemption on the betterment tax,” said Steinitz.
Israel Tax Authority director general Yehuda Nasradishi is unimpressed by Steinitz’s proposed measures. “I see almost no effect because I don’t see these guys selling their apartments so quickly,” he said.