Subletters and Arnona

This article addresses subletters and arnona and whether a subletter must pay arnona, particularly the question “Do subletters or sub-tenants have to pay arnona?” It also briefly addresses the issue of separate units and arnona. (Arnona is a property municipal tax in Israel.)

Subletters and Arnona Issues

A subletter (or sub-tenant) is a person who lives in a room, part of a room, or a few rooms of one piece of property in a building, and who pays the real “holder of the property” — whether the owner, renter or primary tenant — rental fees for the area the person lives in. The subletter is not required to pay arnona to the municipality, but the subletter must pay arnona to the primary tenant. A subletter is not a person who pays a renter fee to the owner of the property, as this person is a renter and is responsible for paying arnona (and ensuring that the arnona account is registered in their name). As mentioned in the article “Who Has to Pay Arnona,” the person closest to the property (and in effect, the one enjoying the services the arnona payment purchases) is the one responsible for paying it.

Separate Units and Arnona

It is possible for a property owner to create separate units by dividing an apartment. If an apartment has two entrances, it is possible to make it into two separate pieces of property for arnona purposes. In this event the primary renter or owner would be responsible for paying the arnona on the particular unit they reside in.

This Series of Articles

Our law firm has a number of legal specializations, including property law and issues related to to arnona. Arnona falls under the authority of the Ministry of Interior (Misrad HaPanim) and the local authority. We have written a series of arnona articles addressing various questions and issues people frequently ask about. This series addresses a number of topics like what is arnona, when it needs to be paid, who gets discounts, and more.