Betterment tax is levied and paid to the local authorities in regard to the increase in the value of real estate that has occurred as a result of a change, for example: building an additional storey or a basement, the field received approval agricultural to residential, or by increasing the amount of meterage that can be built.
Betterment tax is set at a rate of 50% of the increase in the value of the land as a result of the above change. The said increase is determined by a written report from a land assessor representing the local authority. This assessment can be appealed within 30 days of its receipt by the seller. Recent amendments to the law have changed the manner in which an appeal can be filed.

Form required documents must:

• Recent sales contract and sales contract first, contract purchase. Taboo-date version of up to six months from the date of production.
• Affidavit regarding protected tenants should specify: name, ID, floor, Apartment, side.
• Affidavit regarding self-construction that had been given in respect of residential property.
• Contract with the Israel Lands Administration.
• If the owner is a non-profit association rules must be attached with no credentials.
• photocopy of identity card of the seller.
• If the property is owned by a company registered approval is required authorized signature and a copy of his ID.