Article: Housing for rent. (Knesset Finance Committee approves law granting benefits to construction industry to build rental housing)

The Knesset Finance Committee has approved the proposed law for the encouragement of rental housing which will now be submitted to a second and third reading of the Knesset.

The law prepared by the Finance Ministry provides for the granting of various benefits to contractors of rental housing. Benefits include increased depreciation of 20 percent and tax reliefs after five years. Mutual funds will be permitted to invest in rental housing and real estate. Currently the funds can only invest in negotiable securities. Sales or purchase of mutual fund units invested in real estate will not be liable to tax. Other provisions of the proposed law grant tax exemptions to ...

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