South Africa
Israeli Property Valuation for South African Tax Residents
Last Update - October 2026
Independent Real Estate Appraisal in Israel for South African Tax Residents, Property Owners and Their Professional Advisers
Do you own real estate in Israel and are you a South African tax resident?
IL APPRAISER provides independent Israeli real estate valuations for property owners in South Africa and for South African accountants, tax advisers, attorneys and other professionals who need reliable information about an Israeli property.
A valuation may be relevant to South African tax reporting, Capital Gains Tax, foreign rental income, inheritance and estate matters, financial settlements 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.
When Might an Israeli Property Valuation Be Relevant?
You may be particularly interested in our service if:
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You are a South African tax resident and own real estate in Israel.
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Your accountant or tax adviser needs an independent property value.
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You are selling or considering selling an Israeli property.
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You need a valuation for a specific historical date.
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You inherited an Israeli property or need to divide an estate.
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You are involved in a divorce or financial settlement.
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You own an Israeli rental property and want to understand its market rental value.
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You are considering buying an Israeli property or investing in Israeli real estate.
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You have received an urban-renewal proposal and want to assess the economic terms.
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You received a Betterment Levy assessment in Israel and want to examine the valuation.
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You transferred or are considering transferring Israeli property as a gift.
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You already have a previous appraisal and need an updated value.
South African Tax Matters Relevant to Israeli Property
Residence-Based Taxation
South Africa operates a residence-based tax system.
Subject to specific exemptions and rules, a South African tax resident is generally taxed on worldwide income rather than only income earned in South Africa.
This means that an Israeli property can become relevant to the South African tax position of a South African tax resident even though the property itself is located outside South Africa.
The principal legislative framework includes the Income Tax Act 58 of 1962 and the Tax Administration Act 28 of 2011.
The client's South African tax adviser determines whether the individual is a tax resident and how the Israeli property should be treated for South African tax purposes.
Capital Gains Tax — Capital Gains Tax (CGT)
South Africa's Capital Gains Tax (CGT) is part of the income-tax system rather than a separate standalone tax.
The relevant rules are contained in the Eighth Schedule to the Income Tax Act 58 of 1962.
SARS states that a South African resident is liable for CGT on assets located both inside and outside South Africa.
This makes Israeli real estate potentially relevant to the South African CGT position when the property is disposed of.
For the 2026/27 year of assessment, the maximum effective CGT rate for individuals and special trusts is 18%.
This is an effective tax rate rather than a flat rate applied to the entire capital gain. The calculation involves the applicable inclusion rate, the taxpayer's taxable income and the available exclusions and exemptions.
Selling an Israeli Property
The tax consequences of selling Israeli real estate can involve both Israeli and South African rules.
The South African calculation may require information concerning:
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Acquisition cost
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Acquisition date
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Disposal proceeds
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Allowable expenditure
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Capital improvements
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The relevant valuation date
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Foreign tax paid
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Applicable exchange rates
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Any available exclusions or reliefs
An independent Israeli property valuation may be relevant where the market value of the property at a particular date needs to be established.
The client's tax adviser determines the South African calculation.
Example
A South African tax resident purchased an apartment in Jerusalem and is now considering selling it.
The accountant needs to establish the property's market value at a particular historical date as part of the wider tax analysis.
IL APPRAISER can prepare an Israeli valuation for that specific date, based on the property's characteristics and available Israeli market evidence.
The valuation does not itself determine the client's South African tax liability.
A Special South African Issue: Property Acquired Before 1 October 2001
South Africa introduced CGT with a valuation date of 1 October 2001.
For an asset acquired before that date and disposed of afterwards, the portion of the gain attributable to the period before the valuation date is generally excluded from CGT by establishing a valuation date value.
For qualifying assets, SARS identifies three methods that may be used:
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Market value on 1 October 2001
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Time-apportionment base cost
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20% of proceeds, after relevant post-1 October 2001 expenditure
This can create a particularly important historical valuation issue for a South African resident who has owned an Israeli property for many years.
SARS guidance also provides that where the market-value method is used for relevant assets, the property valuation had to have been performed by 30 September 2004.
Where a historical valuation issue arises, the client's tax adviser should first determine which method is applicable and what evidence is required.
IL APPRAISER can assist with an Israeli property valuation where a professional valuation is appropriate and sufficient historical evidence is available.
Foreign Rental Income
Israeli rental income may be taxable in South Africa for a South African tax resident.
SARS states that rental income is subject to income tax and that foreign income forms part of the residence-based taxation framework, subject to applicable rules and reliefs.
A rental property can therefore raise two separate questions:
How much tax is payable?
and
What is the property's actual market rental value?
The first is a tax question for the accountant or tax adviser.
The second can be addressed through a professional rental-value assessment.
Example
A South African resident owns an apartment in Tel Aviv and is considering renewing the lease.
Before agreeing to a new rent, the owner wants to know whether the proposed rental is consistent with current market conditions.
IL APPRAISER can assess the property's market rental value using comparable Israeli rental evidence and the characteristics of the property.
This service can be useful even when there is no immediate tax-reporting requirement.
Foreign Tax & Section 6quat
South Africa provides mechanisms for relief from certain foreign taxes.
Section 6quat of the Income Tax Act contains important rules concerning foreign taxes paid in respect of foreign-source income.
A legislative amendment applying to the 2026 year of assessment for individuals and trusts expanded the foreign tax credit treatment for taxes paid on foreign capital gains.
This can be relevant where an Israeli property disposal creates tax obligations in both Israel and South Africa.
The availability and amount of any foreign tax credit depends on the taxpayer's circumstances and the applicable rules.
The client's tax adviser determines the tax credit.
IL APPRAISER's role is to provide the Israeli property valuation where a property value is required for the underlying tax analysis.
South African Tax Forms That May Be Relevant
The exact forms depend on the taxpayer and the circumstances.
ITR12
Income Tax Return for Individuals
The main individual income-tax return. Foreign income, capital gains and other relevant information may need to be reported through the individual's ITR12.
IRP6
Provisional Tax Return
Relevant to provisional taxpayers.
A South African property owner receiving rental income or other income outside normal remuneration may fall within the provisional-tax system depending on the circumstances.
REV267
Estate Duty Return
Used by the executor in relation to Estate Duty and submitted with the relevant estate documentation.
IT144
Donations Tax Declaration
Relevant where a taxable donation of property occurs.
CGT2L
Valuation for Capital Gains Tax Purposes
A historical form associated with the valuation-date value of assets acquired before 1 October 2001.
The client's South African tax adviser should determine which forms apply.
Inheritance & Estate Matters
Estate Duty
South Africa imposes Estate Duty on the worldwide property of a natural person who was ordinarily resident in South Africa, and on South African property of non-residents, subject to the applicable rules.
For 2026, SARS states that Estate Duty is charged at:
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20% on the first R30 million of the dutiable amount
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25% on the amount above R30 million
A basic deduction of R3.5 million is available in determining the estate's liability, together with other applicable deductions.
Israeli real estate can therefore become relevant to a South African deceased estate.
The principal legislation is the Estate Duty Act 45 of 1955.
Valuing Israeli Property for a South African Estate
The value of Israeli real estate may need to be established as part of the estate administration process.
The executor may need reliable information concerning:
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Property value at the relevant date
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Ownership
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Property rights
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Existing leases
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Planning status
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Encumbrances and restrictions
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Market evidence
SARS requires the executor to submit the REV267 Estate Duty Return together with the relevant estate documentation.
Example
A South African tax resident dies while owning an apartment in Herzliya.
The executor needs to establish the value of the Israeli property for the estate.
IL APPRAISER can provide an independent Israeli market valuation for the relevant date.
The executor, attorney and tax adviser determine how the value is used in the estate and tax process.
Gifts of Israeli Property
South African Donations Tax may also become relevant when property is transferred as a donation.
SARS defines a donation as a gratuitous disposal of property or a gratuitous waiver or renunciation of a right.
For the current framework, the Donations Tax rate is 20% up to the applicable R30 million threshold and 25% above it, subject to exemptions and the specific rules.
The first R150,000 of property donated in a year of assessment by a natural person is generally exempt, subject to the legislation.
The relevant declaration is Form IT144.
Where an Israeli property is being transferred as a gift, the legal and tax advisers should determine the applicable treatment.
An independent valuation may be relevant where the property's market value forms part of that analysis.
One Property — More Than One Valuation Date
The same Israeli property may need to be valued at different points in time.
For example:
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Value at acquisition
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Value on a historical date
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Value at the date of death
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Value at disposal
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Current market value
The relevant date depends on the tax, legal or financial matter.
A current appraisal does not automatically establish the property's market value on an earlier date.
For historical valuations, the property's characteristics and the available market evidence for the relevant period need to be examined.
South Africa–Israel Tax Convention
South Africa and Israel have a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains.
The treaty contains specific provisions concerning Israeli real estate.
Article 6 — Income from Immovable Property
Income from immovable property may be taxed in the state where the property is situated.
Article 13 — Capital Gains
Gains from the disposal of immovable property may be taxed in the state where the property is situated.
The treaty also contains provisions dealing with the elimination of double taxation.
The treaty has been modified by the Multilateral Instrument (MLI), with relevant MLI provisions applying to the South Africa–Israel treaty from 1 July 2023 in accordance with the applicable framework.
The treaty and MLI provisions can be important in cross-border matters, but their application depends on the particular facts.
The client's tax adviser should determine how the Convention applies.
2026 Filing Season & Provisional Tax
The South African tax year for individuals generally runs from 1 March to the end of February.
For the 2026 Filing Season, SARS published the following dates:
Provisional tax payments generally fall on:
31 August — first period
28 February — second period
30 September — optional third payment
The exact filing and payment requirement depends on the taxpayer's category and circumstances.
SARS Assessments, Objections & Appeals
A taxpayer who disagrees with a SARS assessment can use the formal dispute process.
Requesting Reasons
Before lodging an objection, a taxpayer may request reasons from SARS where reasons are needed to formulate the objection.
Objection
SARS generally provides 80 business days for an objection against an assessment or decision.
Appeal
If the objection is disallowed or partially allowed, the taxpayer can generally lodge an appeal within 30 business days from the relevant objection outcome.
Where a dispute concerns the value attributed to property, an independent valuation may become part of the professional evidence considered by the taxpayer and advisers.
IL APPRAISER does not conduct the tax dispute procedure. We can provide the relevant Israeli property valuation where a valuation issue forms part of the dispute.
2026 Legislative Update
Changes to Capital Gains Tax
For the 2026/27 year of assessment, SARS states that the maximum effective CGT rate for individuals and special trusts is 18%.
From 1 March 2026, the annual capital-gain exclusion for individuals increased to R50,000.
Other exclusions were also increased, including:
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R3 million primary-residence exclusion
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R440,000 death exclusion - The annual CGT exclusion for an individual increases to R440,000 in the year of death.
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R2.7 million small-business disposal exclusion for qualifying taxpayers aged 55 or older
The exact availability of these exclusions depends on the circumstances and the type of asset.
For an owner of Israeli real estate, the annual exclusion and death-related rules can become relevant in a disposal or estate calculation, while the primary-residence exclusion requires careful consideration of whether the statutory conditions are met.
Beyond Tax Reporting — How We Can Help
An Israeli property valuation is not only vauleble for tax-related actions .
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:
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Considering a new rental
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Reviewing an existing lease
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Comparing rental alternatives
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Planning a purchase for investment
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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:
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Existing apartment value
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Proposed consideration
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Size and characteristics of the replacement apartment
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Parking and storage
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Floor and location
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Additional economic components of the proposal
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Market rent during the evacuation period
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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:
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The valuation date
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The planning event
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The property characteristics
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The valuation methodology
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The market evidence
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The contribution of planning rights to value
Where appropriate, the professional valuation analysis may support an objection, appeal or another procedure handled with the legal adviser.
You Are Considering an Investment
A valuation can help establish an independent property reference point before you commit capital.
For example, an investor may want to compare:
Purchase Price
against
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.
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 conduct the relevant property and market research.
4. Receive the Report
The completed appraisal can be delivered to you or coordinated directly with your French lawyer, notaire, accountant or tax adviser.
What Does IL APPRAISER Provide?
Depending on the assignment, the appraisal may address:
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Property identification
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Location and surroundings
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Physical characteristics
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Registered rights
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Planning status
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Building rights
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Existing leases or occupancy
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Comparable transactions
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Rental evidence
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Market conditions
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Valuation methodology
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Market value
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Market rental value
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Historical valuation date
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Supporting analysis
Where the valuation is being prepared for a South African professional adviser, we can discuss the purpose, valuation date and any specific documentation requirements before the engagement begins.
For South African Accountants, Tax Advisers & Attorneys
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:
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IFI-related valuations
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Historical valuations
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Capital gains matters
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Estate and inheritance matters
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Divorce and financial settlements
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Property sales and acquisitions
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Rental-value assessments
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Urban renewal
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Betterment Levy matters
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Multiple Israeli properties
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Updates of previous appraisals
You handle the South African legal and tax matter.
We provide the Israeli property valuation.
Why IL APPRAISER?
Israeli Licensed Appraisers
Independent real estate appraisal carried out in Israel.
Israeli Market Evidence
Our analysis is based on the Israeli property, planning and market environment rather than foreign transaction databases alone.
Defined Valuation Date
We identify the relevant date and assess the property as of that date.
Remote Process
The assignment can be coordinated from France or elsewhere without the property owner having to manage the process personally in Israel.
Professional Coordination
We can work directly with the client's lawyer, notaire, accountant or tax adviser.
Valuation Updates
Where appropriate, an existing valuation can be reviewed and updated for a subsequent valuation date.
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:
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The property becomes relevant to a later tax year
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A property is being sold after several years
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An estate matter has developed
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A previous valuation is no longer current
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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.
Frequently Asked Questions
Do South African tax residents automatically need an Israeli professional appraisal?
No. The need for an independent appraisal depends on the circumstances, the purpose of the valuation and the applicable South African tax rules.
Does South Africa tax income from my Israeli property?
South Africa generally uses a residence-based system, meaning that South African tax residents may be taxed on worldwide income, subject to the applicable rules and exclusions.
Can you prepare a valuation for a historical date?
Yes. We can prepare a valuation for a specified historical date, subject to the available property and market evidence.
Can you provide a valuation for a South African Capital Gains Tax matter?
Yes. We can provide an independent Israeli property valuation for the relevant purpose and valuation date. The client's South African tax adviser determines how the valuation is incorporated into the CGT calculation.
What is the significance of 1 October 2001?
1 October 2001 is South Africa's CGT valuation date. For qualifying assets acquired before that date, a valuation-date value may be relevant to calculating the taxable post-CGT gain.
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 estate?
Yes. We can provide an independent Israeli market valuation for the relevant date. The executor's attorney or tax adviser determines how the valuation is used in the Estate Duty process.
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 South African accountant or tax adviser?
Yes. We can coordinate directly with professional advisers according to your preference.
Can you update a previous 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 French tax reporting, an inheritance, 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.
Important Notice
This page provides general professional information about Israeli property valuation for French tax residents. It does not constitute French, Israeli or international tax, legal or financial advice.
French and Israeli tax rules, reporting requirements, procedures and deadlines may change and may depend on the taxpayer's individual circumstances.
The client's French 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.
