What Is Form 2973?
Form 2973, officially called Bakasha L'Ptur Chelki Mi'Mas Rechisha (Application for Partial Exemption from Purchase Tax), is the form you file with the Israel Tax Authority to claim the reduced מס רכישה (Mas Rechisha) brackets available to olim chadashim. Without filing this form, you will be assessed at the standard (much higher) purchase tax rates, even if you are eligible for the oleh discount.
Filing the form correctly is essential. Errors or missing documents result in the application being returned, delays in property registration, and potential penalty interest if the deadline is missed.
When do you need to file Form 2973?
Form 2973 is submitted as part of the real estate transaction declaration. Specifically:
- Your property lawyer files the mas rechisha declaration (Form 7002) within 30 days of signing the purchase contract
- Form 2973 is filed alongside or shortly after Form 7002, requesting that the oleh discount be applied to the transaction
- Payment of the reduced mas rechisha amount is due within 60 days of signing the purchase contract
In practice, your property lawyer handles both forms simultaneously. Your job is to provide the supporting documents promptly so there are no delays.
What documents do you need for Form 2973?
You will need to provide the following to your lawyer for the Form 2973 filing:
- Teudat Oleh (Immigration Certificate): The original or a certified copy proving your oleh status and your official aliyah date. This is the most critical document - it establishes your eligibility and the start date of your 7-year window
- Teudat Zehut (Israeli ID): Your Israeli identity card confirming your personal details and ID number
- Sale contract (Chozeh Mecher): The signed purchase contract for the property, including the purchase price and payment schedule
- Lawyer's declaration: Your lawyer submits a declaration confirming that this is your first property purchase in Israel as an oleh, and that you are within the eligible timeframe
- Proof this is your first purchase: A declaration that you do not own any other residential property in Israel. If you co-own property with a spouse, the rules may differ - consult your lawyer
Where do you submit Form 2973?
Form 2973 is submitted to the regional tax office (Misrad Mas Rechisha) that has jurisdiction over the property's location. Israel has several regional offices:
| District | Coverage Area |
|---|---|
| Jerusalem | Jerusalem and surrounding areas |
| Tel Aviv | Greater Tel Aviv metropolitan area |
| Haifa | Northern Israel |
| Be'er Sheva | Southern Israel |
Your lawyer knows which regional office handles your transaction and files accordingly. You typically do not need to visit the office in person - your lawyer submits on your behalf.
How long does Form 2973 take to process?
After your lawyer submits Form 2973, the Israel Tax Authority reviews the application:
- Standard processing: 30-60 days from submission. During this period, the Tax Authority verifies your oleh status, confirms this is your first purchase, and checks that you are within the 7-year eligibility window
- Approval: You receive a mas rechisha assessment notice (Shomah) showing the reduced tax amount. If you've already paid a preliminary amount, any overpayment is refunded or credited
- Clearance certificate: Upon payment, the Tax Authority issues an Ishur Mas Rechisha (clearance certificate) which is required to register the property at the טאבו (Tabu) (Land Registry)
What happens if Form 2973 is rejected?
Rejections are relatively rare when documentation is complete, but they can happen for several reasons:
- Outside the 7-year window: If more than 7 years have passed since your aliyah date, the discount no longer applies
- Not your first purchase: If you have previously purchased residential property in Israel, you are not eligible for the oleh rate
- Missing or incomplete documents: The most common issue. The Tax Authority will request additional documents, adding 2-4 weeks to the process
- Status dispute: In rare cases, the Tax Authority may question your oleh status. Your lawyer can submit additional documentation to resolve this
Rejection Deadline
If rejected, you have only 30 days to appeal. Appeals are handled through the regional tax office and may require a hearing. Consult your lawyer immediately if you receive a rejection.
The 7-Year Eligibility Window
7-Year Deadline
The oleh mas rechisha discount is available for 7 years from your official aliyah date (the date on your Teudat Oleh). The purchase contract signing date determines whether you are within the window - not the closing date or the date of property registration.
If you are approaching the end of your 7-year window and planning to buy, be aware that the signing date is what counts. Even if the full payment, closing, and registration happen after the 7-year mark, the discount applies as long as the contract was signed within the window.
Can you claim the discount if you bought before aliyah?
One important provision: you can apply for the oleh mas rechisha discount retroactively if you purchased property in Israel up to one year before your official aliyah date. If you bought an apartment while still living abroad and made aliyah within 12 months of that purchase, you can file an amended mas rechisha declaration to claim the reduced rates.
This retroactive option requires filing within a specific timeframe after aliyah. Inform your property lawyer of your aliyah plans at the time of purchase so they can structure the filing accordingly.
Practical Tips
- Give your lawyer a copy of your Teudat Oleh at the very start of the property search process, not just at signing
- Ensure your Teudat Zehut name matches your Teudat Oleh name exactly - discrepancies in transliteration cause delays
- Ask your lawyer to confirm the submission and provide you with the Tax Authority's receipt number for tracking
- Do not wait for the assessment before making the משכנתא (Mashkanta) (mortgage) arrangements - these processes run in parallel
Form 2973, officially Bakasha L'Ptur Chelki Mi'Mas Rechisha (Application for Partial Exemption from Purchase Tax), is the form you file with the Israel Tax Authority to claim the reduced mas rechisha (purchase tax) brackets available to olim chadashim. Your property lawyer files it alongside or shortly after the purchase tax declaration (Form 7002), which is due within 30 days of signing your purchase contract, and payment of the reduced amount is due within 60 days of signing. To file, you provide your Teudat Oleh (proving your aliyah date), Teudat Zehut, the signed sale contract, and a declaration that this is your first residential property in Israel. Without filing Form 2973 you are assessed at the standard, much higher purchase tax rates even if you qualify. The discount is available for 7 years from your official aliyah date, and the contract signing date, not the closing or registration date, is what determines whether you are inside that window.
Form 2973, officially called Bakasha L'Ptur Chelki Mi'Mas Rechisha (Application for Partial Exemption from Purchase Tax), is the form you file with the Israel Tax Authority to claim the reduced mas rechisha (purchase tax) brackets available to olim chadashim. Without filing this form, you will be assessed at the standard, much higher purchase tax rates even if you are eligible for the oleh discount. Filing it correctly is essential, because errors or missing documents result in the application being returned, delays in property registration, and potential penalty interest if the deadline is missed.
Form 2973 is submitted as part of the real estate transaction declaration. Your property lawyer files the mas rechisha declaration (Form 7002) within 30 days of signing the purchase contract, and Form 2973 is filed alongside or shortly after Form 7002 to request that the oleh discount be applied. Payment of the reduced mas rechisha amount is due within 60 days of signing the purchase contract. In practice your lawyer handles both forms simultaneously, so your job is to provide the supporting documents promptly to avoid delays.
You will need to give your lawyer your Teudat Oleh (Immigration Certificate), the original or a certified copy, which is the most critical document because it proves your oleh status and the start date of your 7-year window. You also need your Teudat Zehut (Israeli ID), the signed sale contract (Chozeh Mecher) including the purchase price and payment schedule, your lawyer's declaration confirming this is your first property purchase in Israel as an oleh and that you are within the eligible timeframe, and proof this is your first purchase via a declaration that you do not own any other residential property in Israel. If you co-own property with a spouse, the rules may differ, so consult your lawyer.
Form 2973 is submitted to the regional tax office (Misrad Mas Rechisha) that has jurisdiction over the property's location. Israel has several regional offices: Jerusalem (Jerusalem and surrounding areas), Tel Aviv (Greater Tel Aviv metropolitan area), Haifa (Northern Israel), and Be'er Sheva (Southern Israel). Your lawyer knows which office handles your transaction and files accordingly. You typically do not need to visit the office in person, because your lawyer submits on your behalf.
Standard processing is 30 to 60 days from submission. During this period the Israel Tax Authority verifies your oleh status, confirms this is your first purchase, and checks that you are within the 7-year eligibility window. On approval you receive a mas rechisha assessment notice (Shomah) showing the reduced tax amount, and any overpayment on a preliminary amount is refunded or credited. Once you pay, the Tax Authority issues an Ishur Mas Rechisha (clearance certificate), which is required to register the property at the Tabu (Land Registry).
Rejections are relatively rare when documentation is complete. Common reasons include being outside the 7-year window, the purchase not being your first residential property in Israel, missing or incomplete documents (the most common issue, which adds 2 to 4 weeks while the Tax Authority requests more), or in rare cases a dispute over your oleh status that your lawyer can resolve with additional documentation. If you are rejected, you have only 30 days to appeal. Appeals are handled through the regional tax office and may require a hearing, so consult your lawyer immediately if you receive a rejection.
The oleh mas rechisha discount is available for 7 years from your official aliyah date, the date on your Teudat Oleh. The purchase contract signing date determines whether you are within the window, not the closing date or the date of property registration, so the discount applies as long as the contract was signed within the window even if payment, closing, and registration happen after the 7-year mark. You can also claim the discount retroactively if you purchased property in Israel up to one year before your official aliyah date: if you bought while still living abroad and made aliyah within 12 months of that purchase, you can file an amended mas rechisha declaration to claim the reduced rates. This retroactive option requires filing within a specific timeframe after aliyah, so inform your lawyer of your aliyah plans at the time of purchase.
