Alpha Beta's experts engage in adapting and improving real estate according to market needs and to profits and benefits. Among other things, we engage in adapting land and/or buildings for the purpose of saturated construction, and long term rental apartments.
The benefits may include:
Income tax benefits on a new long-term rental building, under Section 53 C of the Investments Encouragement Law.
20% annual depreciation (regular depreciation rate on buildings is 4% p.a.).
Reduced income tax at the rate of 11% (normal corporate tax is 23%).
Income tax at rates between 10%-18% for foreign investment corporations.
Exemption from VAT on new long-term rental building, under Section 31 of the VAT Law.
Exemption from VAT on sale of apartments under Section 31 (1)(a) of the VAT Law, to the extent the sold part has been rented for at least five years.
Deduction of tax on outlays regarding land and construction expenses; this right is granted only if the outlays are expected to create transactions on which VAT will be paid.
In addition to all of the above, there are further conditions for receipt of tax benefits, which are not stipulated in the Investments Encouragement Law, but in a special procedure published by the Investments Authority.