Israel: 3% surtax plus 2% on capital income above ILS 721,560 a year
From 2025, on top of the 3% surtax on high income, a further 2% applies to capital income (interest, dividends, gains) above ILS 721,560 a year; the threshold is frozen through 2027. Under Tax Authority directive 5/2025, rent that is not a business counts as capital income, and income taxed at the 15% rate is included in the surtax base.
What this changes in the calculation
For a typical investor with an apartment in Georgia nothing changes, 15% remains; the part of income above the threshold is taxed at 20%, and the 25% on interest and gains becomes 30%.
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