How this works
There are no recorded Sde Dov rents because no homes have been delivered yet. Rent is left for you to enter. Gross yield is annual rent before vacancy divided by price. Net yield subtracts cash expenses, then tax. All yields on price exclude buying costs and capital gains.
For eligible residential letting by an individual, the monthly exemption ceiling is ₪5,654. The Tax Authority confirms the amounts are frozen for 2025 to 2027. Above the ceiling, the exemption falls by the excess; at twice the ceiling it is gone. The test includes the household's rental income. This tool assumes this is the only rental property.
The 10% track under section 122 taxes rent received, without ordinary expense deductions, depreciation or tax credits. It requires residential use in Israel and non-business rental income. Special relief for an owner who also rents a home is not modelled. The regular track uses your adviser-confirmed taxable deductions and effective rate; partial exemption uses a proportional share of deductions.
Vacancy reduces receipts using a 52-week year. The monthly exemption test still uses the occupied month's agreed rent, not annual receipts divided by twelve. This is an annual planning approximation; actual partial months need a month-by-month tax calculation.
The mortgage result subtracts both principal and interest repayments using the mortgage library. It shows cash flow, not taxable mortgage expense. Confirm interest and depreciation deductions with your adviser. Non-residents should confirm Israeli track eligibility, reporting and tax in their home country; this tool does not establish their personal tax treatment.
Worked example
Start with price ₪6,800,000 and no entered rent, costs or loan. The scenario has zero income and zero yield. For your own figures, annual collected rent is monthly rent × 12 × the occupied share of the year. Subtract your annual cash costs, then calculated tax, then twelve mortgage repayments to get annual cash flow.
Questions about mortgages for foreigners
What rent should I expect in Sde Dov?
The district has no delivered homes and no recorded rents yet. This calculator makes no rent forecast. Use your own evidenced assumption and test a lower one too.
What is the exemption ceiling?
The monthly ceiling is ₪5,654, frozen through 2027. It applies to eligible household rental income, and the exemption shrinks above the ceiling.
Does the 10% track deduct running costs?
No ordinary deductions apply to the 10% tax base. Cash costs still reduce your net income. Special rent-paid relief is outside this calculator.
Why must I enter a personal tax rate?
Regular taxation and the taxable balance under partial exemption depend on your income and circumstances. An adviser must supply the rate and eligible deductions.
Can vacancy make high rent exempt?
No. The exemption test uses monthly rent during letting. The annual vacancy assumption reduces receipts and estimated tax proportionally, not the monthly threshold.
Is yield after a mortgage the same as cash return on equity?
No. Yield on price keeps the apartment price as denominator. Cash return on equity divides cash flow by price less the loan and excludes buying costs.
Sources
Each link opens the publication the figures on this page were read from.
- Tax Authority: monthly exemption amount
- Tax Authority: 2025 to 2027 freeze
- Tax Authority: individual income-tax guide
- Tax Authority: section 122 on form 3302
- Bank of Israel: mortgage limits
Sources checked on .
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