Italy

Israeli Property Valuation for Italian Tax Residents

Last Update - October 2026

Independent Real Estate Appraisal in Israel for Italian Tax Residents, Property Owners and Their Professional Advisers

Do you own real estate in Israel and are you an Italian tax resident?

IL APPRAISER provides independent Israeli real estate valuations for property owners in Italy and for Italian commercialisti, lawyers, tax advisers, notaries and other professionals who need reliable information about Israeli real estate.

A valuation may be relevant to Italian tax reporting, foreign-property taxation, rental income, capital gains, inheritance, estate matters or other professional matters.

It may also be useful for completely non-tax matters — such as deciding whether to buy a property, determining realistic rental income, evaluating an urban-renewal proposal or reviewing an Israeli Betterment Levy assessment.

Our role is to establish the value and relevant real-estate characteristics of the Israeli property.

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When Might an Israeli Property Valuation Be Relevant?

You may be particularly interested in our service if:

You are an Italian tax resident and own real estate in Israel.
Your commercialista or tax adviser needs an independent property value.
You receive rental income from an Israeli property.
You are selling or considering selling an Israeli property.
You need a valuation for a specific historical date.
You inherited an Israeli property or need to divide an estate.
You are considering transferring an Israeli property as a gift.
You are moving to Italy while already owning property in Israel.
You are leaving Italy while still owning an Israeli property.
You are involved in a divorce or financial settlement.
You are considering buying an Israeli property or investing in Israeli real estate.
You want to know the realistic rental value of your property.
You have received an urban-renewal proposal and want to assess the economic terms.
You received a Betterment Levy assessment in Israel and want to examine the valuation.
You already have a previous appraisal and need an updated value.

Italian Tax Matters Relevant to Israeli Property

Imposta sul reddito delle persone fisiche (IRPEF)

Italy generally taxes individuals who are tax resident in Italy on income from worldwide sources, subject to the applicable rules.

This means that income connected with an Israeli property can become relevant to an Italian resident's tax position even though the property is located outside Italy.

Italian tax residence rules were significantly revised from 1 January 2024, including changes to the statutory concepts used to determine when an individual is resident in Italy.

Tax residence is therefore a legal and factual question and should be determined by the client's Italian tax adviser.

The main framework is contained in the Testo Unico delle Imposte sui Redditi (TUIR), D.P.R. 917/1986, together with the residence provisions and subsequent amendments.

IVIE — Italian Tax on Foreign Real Estate

Imposta sul valore degli immobili all'estero (IVIE)

IVIE applies to individuals resident in Italy who own foreign real estate or hold another qualifying real right in the property.

The ordinary IVIE rate was increased from 0.76% to 1.06% from 2024.

The tax is calculated according to the taxpayer's ownership share and period of ownership. No IVIE is payable where the calculated tax does not exceed €200, subject to the statutory rules.

Why the Value of an Israeli Property Matters for IVIE

For an Israeli property, Italy's valuation rules are particularly relevant because Israel is not an EU or EEA member state.

For foreign real estate outside the EU/EEA framework, the value used for IVIE is generally based on the purchase cost shown in the acquisition documents and, where there is no purchase cost, on the market value of the property in the country where it is situated.

This can make an independent Israeli market valuation relevant where the Italian rules call for a market value.

For property acquired by inheritance or gift, special valuation rules apply, including reference to the value declared in the foreign inheritance or gift documentation or, where appropriate, other documented values under the applicable rules.

This distinction is important:

The IVIE value is not necessarily the same as the property's current market value.

The applicable valuation basis should be established by the Italian tax adviser before an appraisal is commissioned.

Form T1135 — Foreign Income Verification Statement

Quadro RW & Quadro W

Italian foreign-property reporting is closely connected with the annual tax return.

Quadro RW — Modello REDDITI PF

The Quadro RW is used by Italian-resident individuals for tax monitoring of foreign investments and assets and for calculating IVIE and IVAFE.

Quadro W — Modello 730

For taxpayers filing the 730, the Quadro W can be used to report foreign investments and assets and to determine IVIE and related taxes.

The 2026 Italian tax administration guidance specifically confirms that Quadro W is used for IVIE reporting.

Why This Matters for an Israeli Property

An Italian resident may therefore need to establish the appropriate value of an Israeli property for:

Foreign-asset reporting
IVIE
Tax documentation
Review of a previous declaration
Professional advice concerning the property's value

The client's commercialista or tax adviser determines how the property should be reported.

Foreign Rental Income

Income from an Israeli rental property can be relevant to Italian income-tax reporting.

The Italian tax administration's 730/2026 guidance includes income from land and buildings located abroad among the foreign-property income categories.

Where foreign property is rented and foreign income tax has been paid, the Italian tax calculation may also involve the applicable foreign-tax-credit rules.

But What Is the Property Actually Worth to Rent?

This is a separate real-estate question.

IL APPRAISER can provide an independent market rental-value assessment based on:

Location
Property type and size
Condition
Floor and characteristics
Parking and storage
Furnishing
Lease terms
Comparable Israeli rental properties
Current market conditions

Example

An Italian tax resident owns an apartment in Tel Aviv and is considering renewing the lease.

The owner wants to know whether the proposed rent reflects current Israeli market conditions.

IL APPRAISER can provide an independent market rental-value assessment.

The Italian tax adviser handles the Italian tax treatment.

Selling an Israeli Property

Capital Gains (Plusvalenze)

Italy can tax certain real-estate capital gains of Italian residents under its domestic rules.

For individuals, the TUIR includes among taxable redditi diversi certain gains from the sale of real property acquired or constructed within five years, subject to statutory exceptions.

There are separate rules for gains from the sale of building land, which can be taxable regardless of the length of ownership.

Italian residents selling Israeli real estate must also consider the Italy–Israel tax treaty and Israeli tax rules.

The applicable treatment depends on:

Acquisition date
Acquisition cost
Disposal date
Sale proceeds
Property type
Whether the property is land or a building
Whether it was inherited or gifted
Relevant expenses
Taxes paid in Israel
The taxpayer's Italian tax position

The client's tax adviser determines the taxable gain.

Historical Market Value

An historical valuation can be relevant when the tax or legal calculation requires the property's value at a particular date rather than its current market value.

For example:
Value at acquisition
Value at inheritance
Value at the date of a gift
Value at another legally relevant date
Value at disposal

A valuation prepared today does not automatically establish the property's market value years earlier.

For historical assignments, IL APPRAISER examines the property's characteristics and available Israeli market evidence for the specified valuation date.

Example

An Italian resident inherited an apartment in Jerusalem and several years later decides to sell it.

The client's commercialista needs an independent valuation for a historical date.

IL APPRAISER can prepare an Israeli valuation for that date, subject to the available evidence.

Inheritance & Estate Matters

Imposta sulle successioni e donazioni

Italy's inheritance and gift tax is known as Imposta sulle successioni e donazioni

The current framework applies different rates and exemptions depending on the relationship between the deceased or donor and the beneficiary.

For inheritance, the principal rates are:

Special rules apply for beneficiaries with qualifying disabilities.

2025 Changes to Inheritance Tax

A significant reform took effect from 1 January 2025 following Legislative Decree No. 139/2024.

One of the key changes was the introduction of self-assessment (autoliquidazione) of inheritance tax.

Instead of waiting for the tax authority to determine the inheritance tax, the persons liable for the tax calculate and pay the tax based on the inheritance declaration.

The Italian tax administration retains the power to review the self-assessment and issue an additional assessment where required.

The reform also introduced changes to the inheritance declaration and related procedures.

Inheritance Declaration & Payment

The Italian Dichiarazione di successione is generally filed within 12 months from the opening of the succession.

For successions subject to the new self-assessment regime, the inheritance tax is generally paid within 90 days after the deadline for filing the inheritance declaration.

The 2025 reform also introduced the possibility, subject to the statutory conditions, of paying at least 20% of the self-assessed inheritance tax within the applicable deadline and paying the balance in instalments.

The client's notary, lawyer or commercialista should determine the applicable procedure.

Valuing an Israeli Property for an Italian Estate

An Israeli property may need to be valued when:

The deceased owned property in Israel
Several heirs need to divide the estate
One heir wishes to retain the Israeli property
Other heirs prefer a cash settlement
Several properties need to be allocated between heirs
The estate contains properties acquired at different dates

Example

Two Italian-resident siblings inherit an apartment in Haifa.

One wants to retain the apartment while the other wants to receive an equivalent value from other estate assets.

An independent Israeli market valuation can provide an objective reference point for the estate division.

The Italian and Israeli professionals determine the legal and tax consequences.

The appraisal determines market value. It does not determine the heirs' legal rights or how the estate must be divided.

Gifts of Israeli Property

A transfer of Israeli real estate by gift can create Italian tax and legal consequences depending on the relationship between donor and recipient and the circumstances of the transfer.

The same Imposta sulle successioni e donazioni framework contains different rates and exemptions depending on the relationship.

Where an Israeli property must be valued for a gift-related matter, IL APPRAISER can establish its market value as of the relevant date.

Example

An Italian tax resident intends to transfer an Israeli apartment to a family member.

The client's adviser needs the property's market value on the date of the transfer.

IL APPRAISER can prepare an Israeli valuation for that date.

The applicable tax treatment should be determined by the client's Italian and Israeli tax advisers.

Italy–Israel Tax Convention

Italy and Israel have a tax convention covering taxes on income and capital, including capital gains.

The treaty contains specific provisions relating to immovable property.

Income from Immovable Property

Income from immovable property may be taxed in the country where the property is situated.

Capital Gains

The Convention provides that gains from the alienation of immovable property may be taxed in the state where the property is situated.

Elimination of Double Taxation

The Convention also provides mechanisms for relief from double taxation.

Italy and Israel also have a separate convention concerning estates and inheritances, which may become relevant in cross-border succession matters.

The applicable treaty treatment depends on the taxpayer's circumstances and should be determined by the relevant tax adviser.

Foreign Tax Credit

Italian domestic law contains rules allowing qualifying foreign taxes paid on foreign-source income to be credited against Italian income tax, subject to the applicable conditions and limitations.

Article 165 of the TUIR is the principal domestic provision concerning the foreign tax credit.

Foreign property may therefore involve two separate calculations:

Tax payable in Israel

and

Tax payable in Italy

The client's tax adviser determines whether a foreign tax credit is available and how it should be calculated.

IL APPRAISER provides the Israeli property valuation where a value is relevant to the tax analysis.

Italian Tax Forms That May Be Relevant

The exact forms depend on the taxpayer and purpose.

Modello 730

Italian individual income-tax return used by qualifying taxpayers.

Quadro W

Used in the 730 for foreign investments and assets and for determining IVIE and related foreign-asset taxes.

Modello REDDITI PF

Individual income-tax return for taxpayers who file the full Redditi return.

Quadro RW

Used for foreign-asset monitoring and for calculating IVIE and IVAFE.

Quadro RL

Can include certain foreign-property income and other foreign-source income according to the applicable return instructions.

Dichiarazione di successione

Inheritance declaration used for estate and inheritance reporting.

Modello F24

Used to pay many Italian taxes, including IVIE and relevant inheritance-tax amounts.

The client's commercialista, tax adviser or notary should determine which forms apply.

2026 Filing & Payment Dates

For the 2025 Canadian tax return filed in 2026:

The same payment framework can apply to IVIE, depending on the taxpayer and filing position.

Deadlines may differ according to the taxpayer's status, filing method and applicable extensions.

Correction of a Tax Return

The Italian tax administration provides several mechanisms for correcting or supplementing a return.

For the 2026 filing cycle, a Redditi corrective can generally be filed by 2 November 2026.

A later Redditi integrativo can be filed within the applicable statutory period.

Where an omitted or incorrect property value affects a return, the client's tax adviser should determine the appropriate corrective procedure.

2026 Legislative Update

IVIE Rate

From 1 January 2024, the ordinary IVIE rate increased from 0.76% to 1.06%.

The change was introduced by Law No. 213/2023.

The higher rate therefore applies to the 2026 tax year as part of the current IVIE framework.

Inheritance Tax Reform

The Legislative Decree No. 139/2024 reform introduced important changes to the Italian inheritance and gift-tax system from 2025.

One of the most significant changes was the move to self-assessment of inheritance tax.

The Italian tax authority subsequently issued detailed administrative guidance in 2025 explaining the new procedures.

Current Indirect-Tax Consolidation

Italy also enacted Legislative Decree No. 123/2025, consolidating rules on registration tax and other indirect taxes, including inheritance and gift tax.

For estate matters involving Israeli real estate, the applicable rules should therefore be checked against the current consolidated legislation rather than relying on older procedural guidance.

Beyond Tax Reporting — How We Can Help

An Israeli licensed appraiser property valuation is not only a tax document.

You Are Considering Buying a Property

Before committing to a purchase, we can provide an independent reference point for market value.

This can help you compare:

Asking Price vs. Market Value

and identify questions that may require further legal, planning, engineering or financial review.

You Own a Property and Want to Know the Rental Value

We can assess the property's market rental value.

This may be useful when:

Considering a new rental
Reviewing an existing lease
Comparing rental alternatives
Planning a purchase for investment
Reviewing an investment property

You Received an Urban Renewal Proposal

If you have been approached regarding urban renewal / Pinui-Binui / TAMA 38, you may need to understand whether the proposed consideration is appropriate.

From the apartment owner's perspective, an appraisal may examine:

Existing apartment value
Proposed consideration
Size and characteristics of the replacement apartment
Parking and storage
Floor and location
Additional economic components of the proposal
Market rent during the evacuation period
Existing appraisal or Standard 21 material

We can provide an independent professional assessment from the owners' perspective.

You Received a Betterment Levy Assessment

The Israeli Betterment Levy ("Heitel Hashbaha") is connected to an increase in land value arising from planning events such as approval of a plan, a relief or permitted exceptional use.

The statutory framework is contained in the Planning and Building Law, 1965, particularly the Third Schedule.

If you have received a Betterment Levy assessment, we can review:

The valuation date
The planning event
The property characteristics
The valuation methodology
The market evidence
The contribution of planning rights to value

Where appropriate, professional valuation analysis may support an objection, appeal or another procedure handled with the legal adviser.

You Are Considering an Investment

A valuation can provide an independent property reference point before you commit capital.

For example, you may want to compare:

Purchase Price

with

Independent Market Value

and separately consider:

Expected Rental Income

against

Market Rental Value

We provide the real-estate analysis. The investment decision remains with the client and their professional advisers.

What Does IL APPRAISER Provide?

Depending on the assignment, the appraisal may address:

Property identification
Location and surroundings
Physical characteristics
Registered rights
Planning status
Building rights
Existing leases or occupancy
Comparable transactions
Rental evidence
Market conditions
Valuation methodology
Market value
Market rental value
Historical valuation date
Supporting analysis

Where the valuation is being prepared for an Italian professional adviser, we can discuss the purpose, valuation date and any specific documentation requirements before the engagement begins.

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Need an Updated Valuation for the Same Property?

Updating an Existing Israeli Property Valuation

If you previously commissioned an appraisal of the same Israeli property, we can review the existing file and, where appropriate, prepare an updated valuation for a new valuation date.

This may be useful when:

The property becomes relevant to a later tax year
A property is being sold after several years
An estate matter has developed
A previous valuation is no longer current
A lawyer or accountant needs an updated professional reference point

A previous appraisal is useful background information but does not automatically establish the property's current market value.

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A Simple Remote Process

1. Tell Us About the Property

Send us the property's location and explain what you need.

2. We Review the Matter

We determine the appropriate appraisal scope, valuation date and information required.

3. The Appraisal Is Prepared in Israel

Our licensed Israeli appraisers carry out the relevant property and market research.

4. Receive the Report

The completed appraisal can be delivered to you or, where requested, coordinated directly with your Canadian accountant, CPA, tax adviser or lawyer.

For Italian Commercialisti, Lawyers, Notaries & Tax Advisers

Have a client who owns property in Israel?

You can refer the client directly to us or coordinate the assignment with us on the client's behalf.

We can assist with:

IVIE-related matters
Foreign-property reporting
Capital gains
Historical valuations
Inheritance and estates
Gift-related valuations
Divorce and financial settlements
Property sales and acquisitions
Rental-value assessments
Urban renewal
Betterment Levy matters
Multiple Israeli properties
Updates of previous appraisals

You handle the Canadian legal and tax matter.

We provide the Israeli property valuation.

Refer a Client

Professional Resources

Our Professional Guide explains the Israeli valuation process, relevant Israeli property documentation, international tax-reporting considerations and how we work with professional advisers.

Download the Professional Guide

Why IL APPRAISER?

Israeli Licensed Appraisers

Independent real estate appraisal carried out in Israel.

Israeli Market Evidence

Our analysis is based on Israeli property, planning and market evidence.

Defined Valuation Date

We identify the relevant date and assess the property accordingly.

Remote Process

The assignment can be coordinated remotely from Russia, Israel or elsewhere.

Professional Coordination

We can work directly with the client's accountant, tax adviser or lawyer.

Valuation Updates

Where appropriate, an existing valuation can be reviewed and updated for a subsequent valuation date.

Frequently Asked Questions

Do Italian tax residents automatically need an Israeli professional appraisal?

No. The need for an independent appraisal depends on the purpose of the valuation, the client's circumstances and the applicable Italian rules.

What is IVIE?

IVIE is the Imposta sul valore degli immobili all'estero, Italy's tax on foreign real estate. The ordinary rate is currently 1.06%, subject to the applicable rules, ownership period, credits and the €200 minimum-tax rule.

Is IVIE always based on the property's current market value?

No. The applicable valuation basis depends on the country and how the property was acquired. For Israeli real estate, the purchase cost is generally relevant, and where there is no purchase cost, market value in Israel may become relevant.

Is an Israeli property automatically included in Quadro RW or Quadro W?

Italian foreign-asset reporting depends on the taxpayer's filing position and circumstances. Quadro RW is used with Redditi PF, while Quadro W is available in the 730 framework for foreign investments and assets and IVIE.

Can you prepare a historical valuation?

Yes. We can prepare a valuation for a specified historical date, subject to the available property and market evidence.

Can you assess the rent I could receive for my Israeli property?

Yes. We can provide a market rental-value assessment based on the property's characteristics and relevant Israeli rental evidence.

Can you provide a valuation for an Italian capital-gains matter?

Yes. We can provide an independent Israeli property valuation for the relevant purpose and date. The client's Italian tax adviser determines the applicable tax treatment and calculation.

Can you provide a valuation for an inheritance?

Yes. We can establish an independent Israeli market value for the relevant date. The client's Italian and Israeli legal and tax advisers determine how it is used in the succession process.

Can you value an Israeli property transferred as a gift?

Yes. We can provide an independent market valuation as of the date of the gift.

Can you review an urban-renewal offer?

Yes. We can review the proposed consideration and relevant property and market information from the owners' perspective.

Can you help with a Betterment Levy?

Yes. We can review the valuation underlying the levy and identify potential professional valuation issues that may support the appropriate legal procedure.

Can you work directly with my Italian commercialista or tax adviser?

Yes. We can coordinate directly with professional advisers according to your preference.

Can you update an old Israeli appraisal?

Yes. We can review the previous valuation and, where appropriate, prepare an updated appraisal for a new valuation date.

Need an Israeli Property Valuation?

Whether the matter concerns Canadian tax reporting, T1135, rental income, capital gains, inheritance, a gift, a move to or from Canada, a sale, a rental decision, an urban-renewal proposal, a Betterment Levy or another property matter, we can review the case and determine the appropriate appraisal scope.

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Important Notice

This page provides general professional information about Israeli property valuation for Italian tax residents. It does not constitute Italian, Israeli or international tax, legal or financial advice.

Italian and Israeli tax rules, reporting requirements, procedures and deadlines may change and may depend on the taxpayer's individual circumstances, residence status, ownership structure and the type of transaction.

The client's Italian and/or Israeli tax or legal adviser should determine the applicable tax treatment, reporting requirements and legal procedure.

IL APPRAISER provides independent Israeli real estate valuation services.

Need an Israeli Property Valuation?

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