"As for the second transfer, it was carried out as part of an exchange transaction[,] and in return for the transfer of the rights in plot 7 from Yaakov to Amer, Yaakov received full consideration, namely the rights in the apartment. Hence, we are not dealing with a gift, but rather a transfer of an asset for full consideration, even if it was done in kind and not in money" (Civil Case (Jerusalem District) 2629-06-23 Salma v. Salame, at paragraph 49 (published in the [Nevo] databases, July 28.2025. emphasis added)).
- You may also be required Section 62(a) Real Estate Taxation Law (Appreciation and Acquisition), 5723-1963, which establishes a provision similar to that in our case: "Sale of a right in real estate and the granting of a right in the association No compensation from one person to another. - Will be exempt from tax [praise]" (emphasis added). The ruling in relation to this provision was established by the Supreme Court Other Municipality Requests 4225/92 Jerusalem Land Appreciation Tax Administration v. Shomroni, IsrSC 35(1) 346 (1996), from The Honorable Judge Theodore Or:
"The transfers of rights, which were made in this case, are not disconnected from each other. Ha Baha Talya. In exchange for the "gift" that one brother gives, he receives a "gift" from the other brother. This conclusion, according to which we are in fact dealing with an exchange transaction, is independently supported in the circumstances of the case: all the transfers – five in number – were made on the same day. In this situation, section 62(a) of the law cannot be applied to the system of transfer of rights that have been made. This section requires that each of the relevant transfers be made 'without consideration'. However, as we have seen above, each of the transfers made by the respondents was intertwined with countertransfers, which constituted consideration for it. Therefore, the conclusion is that in the present case we are dealing with an exchange transaction and not with separate transactions of gifts between relatives, and therefore the exemption from paying the tax set out in section 62(a) of the Law does not apply" (paragraph 8). emphases added).