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War Damage Rehabilitation by means of Urban Renewal Law, 5786-2026

חוק שיקום נזקי מלחמה בדרך של התחדשות עירונית, תשפ"ו-2026

Published: 2026-04-05Consolidated Hebrew text as of 2026-08-13 · Last amended 2026-04-05✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Chapter VI: Real Property Taxation and Compensation

Interpretation§

50.
(a)The terms appearing in this Chapter shall have the meaning attributed to them in Chapter V 4 of the Real Property Taxation Law.
(b)For the purposes of this Chapter, the entry of an apartment owner into an exit agreement shall be regarded as comprising two transactions: a rehabilitation transaction in which the apartment owner sells the real property right in consideration for receiving a right in an alternative residential unit, and a transaction for the sale of a right in an alternative residential unit to the developer.
(c)Notwithstanding the provisions of section 49s(a) of the Real Property Taxation Law, the following provisions shall apply in respect of a rehabilitation transaction:
(1)for the purposes of the definition of "elderly person" –
(a)a person shall be regarded as an elderly person even if the person did not reside in the residential unit being sold for at least two consecutive years;
(b)in a rehabilitation transaction that is a prior transaction under section 36, a person who had reached the age of 70 at the time of the occurrence of the war damage shall be regarded as an elderly person;
(2)for the purposes of the definitions of "residential unit" and "other unit", the date of the occurrence of the war damage shall be regarded as the date of the declaration of the complex under section 14 of the Government Authority Law.

Exemption from Purchase Tax on the Acquisition of an Apartment by a Developer§

51.
(a)A sale to a developer of a right in an alternative residential unit received by an apartment owner, in a rehabilitation transaction concluded pursuant to an undertaking given by the apartment owner in accordance with the provisions of section 38(a)(1) or in accordance with section 43(a)(3)(a) or (b), which is a transaction as referred to in section 49v(a) of the Real Property Taxation Law, shall be exempt from purchase tax, and if during the period commencing on the date of the occurrence of the war damage and ending at the expiry of 12 months from the date on which the developer acquired the right in the alternative residential unit from the apartment owner, as referred to in section 44, the apartment owner acquired a real property right that is a residential apartment as defined in section 9(c) of the Real Property Taxation Law, in exchange for the alternative residential unit, and the value of the residential apartment being acquired was not less than 75% of the sale value of the alternative residential unit – the sale shall also be exempt from capital gains tax.
(b)The provisions of subsection (a) shall apply, with the necessary modifications and subject to section 49aa of the Real Property Taxation Law, also to another unit.
(c)The provisions applicable to a sale as referred to in section 49v1(c) or (d) of the Real Property Taxation Law, as the case may be, shall apply, with the necessary modifications, to a sale as referred to in subsections (a) and (b).
(d)In the sale of an alternative residential unit as referred to in subsection (a), the tax as defined in the Value Added Tax Law, 5736-1975, shall be at a zero rate.

Regulations regarding Adaptations of the Manner of Taxation and Reporting of a Rehabilitation Transaction and an Exit Agreement§

52.

The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe in Regulations adaptations of the manner of taxation and reporting of a rehabilitation transaction and an exit agreement to the principles of the taxation of evacuation-construction transactions under Chapter V 4 of the Real Property Taxation Law.

Compensation for War Damage in a Rehabilitation and Renewal Area§

53.
(a)Notwithstanding the provisions of regulation 8 of the Property Tax Regulations, where war damage has occurred to an apartment in a rehabilitation and renewal area, the property tax administrator may defer the date of payment of compensation under those provisions to an apartment owner as aforesaid (in this section – the injured party) to a date to be determined, having regard to the ratio between the cost of rehabilitating the damage sustained by the building and the cost of financing alternative housing for the injured party as referred to in subsection (b) and the possibility of rehabilitating the damage.
(b)Where the property tax administrator has deferred the date of payment of compensation as referred to in subsection (a), the injured party shall be entitled to reasonable rental payments, as determined by the property tax administrator, until the date on which either paragraph (c)(1) or (2) applies to the injured party or the date of payment of compensation in accordance with the Property Tax Regulations, as the case may be, provided that the rental payments shall not be paid after the date of delivery of the real property to the rehabilitation developer for the commencement of the performance of the work.
(c)Where an injured party has received any of the following, it shall be regarded as if the compensation to which the injured party is entitled for the war damage under the Property Tax Regulations has been paid:
(1)the consideration under a rehabilitation transaction concerning an apartment in a new building constructed in place of the apartment that the injured party had in the rehabilitation and renewal area, and rental payments from the date referred to in subsection (b) until the receipt of the said apartment;
(2)payment of the consideration for the acquisition of the injured party's rights in the real property as referred to in section 44.
(d)This section shall apply in respect of war damage that occurred from the 17th day of Sivan 5785 (13 June 2025) onwards.

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Chapter VII: Miscellaneous Provisions

Granting Priority in Matters relating to a Rehabilitation and Renewal Area§

54.

Notwithstanding any law –

(1)an authorised body and an infrastructure body, as defined in the National Infrastructure Promotion Law, 5783-2023, shall give priority to the handling of a request concerning the receipt of an action approval as defined in that Law, coordination, consultation, provision of information or any other approach by a rehabilitation developer, planning institution or local authority, in connection with the promotion of urban renewal in a rehabilitation and renewal area;
(2)a court, an appeals committee, a determining valuer or the objections committee shall give priority to the handling of a proceeding relating to the promotion of urban renewal in a rehabilitation and renewal area over the handling of another civil or administrative proceeding.

Consent of the Israel Lands Authority§

55.
(a)Notwithstanding any law, where the consent of the Israel Lands Authority is required for a rehabilitation transaction or an exit agreement, for a plan for expedited licensing or for a permit application in a rehabilitation and renewal area, the Israel Lands Authority shall give such consent within 45 days of the date of submission of the request therefor.
(b)If 45 days have elapsed and the consent of the Israel Lands Authority as referred to in subsection (a) has not been received, the consent request shall be regarded as approved.

Development Works in a Rehabilitation and Renewal Area§

56.
(a)A local authority, a local committee or any other body shall not require a rehabilitation developer or the State to perform or finance, directly or indirectly, development works, as a condition for the granting of a permit, approval or consent in connection with a rehabilitation and renewal area, and shall not receive financing for such works or benefit from the performance of such works, even without having required this, unless all of the following conditions are met:
(1)the works shall be performed pursuant to an arrangement between the owner of the real property and the local authority by one of the means prescribed in sections 197, 198 or 198a(b) of the Municipal Corporations Ordinance;
(2)for the performance of the development works, the owner of the real property shall be paid consideration that does not exceed the customary consideration for the performance of such works as defined in section 198a(b)(3) of the Municipal Corporations Ordinance;
(3)the consideration referred to in paragraph (2) shall be paid by one of the means prescribed in section 198a(c) of the Municipal Corporations Ordinance.
(b)In this section –

"development works" – as defined in section 198a of the Municipal Corporations Ordinance, excluding areas designated for public purposes for the municipality located in buildings with additional uses;

"local authority" – as defined in the Planning Law, including a person acting on its behalf.

Transfer of information between public bodies§

57.
(a)For the purpose of implementing the objectives of this Law and carrying out its provisions, and notwithstanding the provisions of Chapter IV of the Privacy Protection Law, 5741-1981, and the Digital Communication with Public Bodies Law, 5778-2018, a public body listed in the Schedule may approach another public body and receive from it the details of an apartment owner or lot owner in a rehabilitation and renewal area (in this Section – property owner) that are in its possession, and the contact details of that person, including a digital address, if one exists; with respect to the Property Tax and Compensation Fund Division at the Israel Tax Authority, the information it shall provide pursuant to this Section, if in its possession, shall be addresses and contact details only.
(b)A public body shall transfer to a public body that has requested it the details in its possession within seven days of the approach to it.
(c)Notwithstanding the provisions of any law, including the provisions of the Privacy Protection Law, 5741-1981, and section 50 of the Property Tax Law, a public body listed in the Schedule may receive information as specified in subsection (a), if the information is reasonably required for the fulfilment of its function under this Law.
(d)Within seven days of the date of the declaration of a rehabilitation and renewal area, the local committee within whose area the area was declared shall transfer to the Chief Government Appraiser and to the property tax administrator, for the purpose of performing their functions under this Law, the contact details of the property owners in the area that are in its possession and all building permits in the precinct.
(e)A rehabilitation promoter may approach a public body listed in the Schedule and receive the contact details of the property owner, for the purpose of approaching that person as referred to in section 43(a)(3), and may use them for that purpose only; a rehabilitation promoter may receive from a public body listed in the Schedule, with the consent of the property owner, the amount of the assessment carried out for the property owner.
(f)Nothing in the provisions of this Section shall prevent the transfer of personal information for the purpose of implementing this Law in accordance with the provisions under Chapter IV of the Privacy Protection Law, 5741-1981.
(g)The information transmitted pursuant to this Section shall be used solely for the purpose for which it was transmitted, and a public body listed in the Schedule shall take the measures required to protect the confidentiality of the information and to prevent it from reaching an unauthorised party.
(h)The Minister of Justice, with the approval of the Interior and Environmental Protection Committee of the Knesset, may, by Order, amend the Schedule.

Implementation§

58.
(a)The Minister of Finance is responsible for the implementation of this Law, except for Chapters III to V.
(b)The Minister of the Interior is responsible for the implementation of Chapter III.
(c)The Minister of Construction and Housing is responsible for the implementation of Chapter IV.
(d)The Minister of Justice is responsible for the implementation of Chapter V.

Appointment of an additional deputy in a local authority within whose area a rehabilitation and renewal area is located – temporary provision§

59.

Notwithstanding the provisions of section 15 of the Local Authorities (Election of Head of Authority and Deputies and Their Tenure) Law, 5735-1975, during the period from the date of the declaration until the 10th of Kislev 5789 (27 November 2028), in a local authority within whose area a rehabilitation and renewal area is located and whose population exceeds 100,000, the council may elect one additional deputy head of the local authority in addition to those referred to in that section, in the manner referred to therein, and that person shall serve until the end of the period referred to in this Section.

Initial provisions§

60.
(a)The Director of the Urban Renewal Authority shall issue instructions regarding the format and text of the notice for the purposes of section 8 within 60 working days of the commencement date; instructions as aforesaid shall be published on the website of the Urban Renewal Authority.
(b)Initial guidelines pursuant to section 45(a)(1) shall be published on the website of the Israel Tax Authority within seven days of the commencement date.

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Chapter VIII: Indirect Amendments

Amendment of the Property Tax and Compensation Fund Law – No. 36§

61.

In the Property Tax and Compensation Fund Law, 5721-1961, in section 2a(a), after "compensation for damage" there shall come "and for the provision of assistance for the acquisition of rights of an apartment owner in a rehabilitation project and for participation in the financing of a rehabilitation and renewal project in accordance with the provisions of section 46 of the War Damage Rehabilitation by means of Urban Renewal Law, 5786-2026".

Amendment of the Real Property Taxation Law – No. 107 and transitional provision§

62.
(a)In the Real Property Taxation (Appreciation and Acquisition) Law, 5723-1963, in section 49v2(a), instead of "a request for a building permit by virtue of a plan for evacuation-construction with respect to the condominium in which the sold unit is located was received by the competent planning institution pursuant to the Planning and Building Law" there shall come "the date of sale of the sold residential unit as defined in section 49t".
(b)The provisions of section 49v2(a) of the Real Property Taxation Law, as worded in subsection (a), shall apply also to agreements entered into before the commencement date, provided that the date of sale as defined in section 49t of that Law had not yet occurred in respect of them on the commencement date.

Amendment of the Administrative Courts Law – No. 155§

63.

In the Administrative Courts Law, 5760-2000, in the First Schedule, in item 10, at the end thereof there shall come:

"(e) A decision of an authority pursuant to the War Damage Rehabilitation by means of Urban Renewal Law, 5786-2026, except for decisions of the Government as defined in that Law.".

Amendment of the Planning Law – No. 167 – temporary provision§

64.

During the period from the 11th of Adar 5786 (28 February 2026) until the 15th of Sivan 5786 (31 May 2026), the Planning and Building Law, 5725-1965, shall be read as if after section 119a1 there came:

"Submission of objections, comments, appeals or arguments – temporary provision

119a2.§
(a)In this Section –

"the special security situation" – the security situation on account of which a special situation in the rear was declared as defined in section 9c of the Civil Defence Law, 5711-1951, on the 11th of Adar 5786 (28 February 2026);

"the determining period" – the period from the 11th of Adar 5786 (28 February 2026) until the 15th of Sivan 5786 (31 May 2026).

(b)The chairperson of a planning institution may extend the period for the submission of objections, comments, appeals or the hearing of arguments, as the case may be (in this Section – objections), generally or with respect to categories of plans or permits, by additional periods that shall not exceed the duration of the determining period, if the chairperson considered that there is justification for doing so due to the special security situation, provided that both of the following conditions are met:
(1)at the time of the commencement of the special security situation, the deadline for the submission of objections had not yet passed;
(2)authority was granted by law to extend the deadline for the submission of objections – the said extension has been exhausted.
(c)The decision of the chairperson of the planning institution pursuant to this Section shall be published on the website of the Planning Administration and on the website of the planning institution within three days of the date on which it was made.
(d)The Minister of the Interior, with the approval of the Interior and Environmental Protection Committee of the Knesset, may extend the determining period, if the special security situation has not yet ended.
(e)Where a district outline plan or a comprehensive plan has been deposited and the final deadline for the submission of objections falls during the determining period, the deadline for the submission of objections shall be extended by 30 days; nothing in the provisions of this paragraph shall derogate from the authority of the chairperson of the planning institution to extend the deadline for the submission of objections by an additional period, in accordance with the provisions of this Section.".

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