Your Ashkelon Income Apartment
What we do
You buy an Ashkelon investment property with the goal of generating passive income and the hope that the property will appreciate in value. If you live abroad, there is no way you can effectively manage the day to day running of your investment. We are located in Ashkelon and are your eyes, ears and hands here.
Rent
Stephen Epstein is a licensed real estate broker and can find a tenant and arrange for a lease to be signed with your local lawyer.
Liaise
We liaise with the vaad bayit (residents committee) in case there are any unexpected repairs or expenses coming your way, as well as your lawyer.
Connect with tenant
We can stay in touch with your tenant to ensure that everything in the apartment is working as it is supposed to.
Pay
While you are away, we will ensure that you are up to date with your municipal taxes, vaad bayit, electricity, water and gas.
Repair
If a repair is needed, we arrange for a repair so that your investment is protected and your tenant is kept happy.
Report
We keep you informed of what is going on. We are a phone call away, so you can find out everything that is going on.
About Rental Income in Israel
Rental Income
In Israel, rental income from a residential apartment can be tax-exempt if it meets specific, mostly monthly, monetary thresholds and usage conditions. For 2026, the exemption ceiling is ~5,700₪ per month. Below is some general information on the subject. You must check with your accountant or lawyer for specific advice. Every situation can be different.
Key Conditions for Full Tax Exemption
To qualify for the full tax exemption on rental income, the following cumulative conditions must be met:
- Income Threshold: The total monthly rental income from all residential apartments owned by the individual does not exceed the ceiling (5,654 NIS in 2025).
- Residential Use: The property is used exclusively for residential purposes.
- Tenant Type: The property is rented to an individual (not a company or business), though in some cases, it can be rented to an organization.
- Usage Limitation: The apartment is not registered, and not required to be registered, as a business asset in the owner’s tax records.
Partial Exemption Details
If the total monthly rental income exceeds the exemption ceiling (5,654 NIS) but is less than double that amount (11,308 NIS in 2025), a partial exemption applies.
Calculation: The taxable amount is calculated by subtracting the excess amount (the amount above 5,700₪ ) from the ceiling and taxing only the remaining amount.
10% Reduced Tax Track: Alternatively, if income is under the double-ceiling amount, you can choose to pay a flat 10% tax on the gross income instead of using the partial exemption.
Important Notes
- Annual Update: The exemption ceiling is updated annually based on the cost-of-living index.
- Reporting: If rental income falls below the exemption ceiling, there is no requirement to report this income to the tax authority.
- Expenses: If you use the full exemption, you cannot deduct expenses, but if you choose the 10% tax track, you cannot deduct depreciation or repairs.
- Alternative Tracks: If your income is higher, you may be able to use the regular tax bracket track, which allows for deductions (such as depreciation) that could lead to a lower tax liability.