Regulatory framework / Tax
Betterment Levy (Hetel Hashbacha)
A charge local Israeli planning authorities impose when a zoning or planning change raises a property's value. The owner pays the municipality a share of the uplift, typically half, on realization or sale.
A betterment levy is a charge local Israeli planning authorities impose when a zoning or planning change raises a property's value — for example, approving added building rights. The owner pays the municipality a share of the uplift, typically half, when the rights are realized or the property is sold.
Why it matters. The levy is a decisive number in any urban-renewal pro forma. It directly shapes the economics of TAMA 38 and Pinui-Binui projects — who builds, and whether the math works.
See also: TAMA 38 · Pinui-Binui · Mas Rechisha