Cost of Arnona in Israel

It can be challenging to try and understand the cost of arnona due to the fact that there are complicated measurements and rules that go into the calculation. For those of you who do not know what arnona means, it is essentially a property tax, and more specifically, a municipal tax. This article addresses how arnona is calculated, which will hopefully help you better understand the cost of arnona in your next arnona bill.

Assets Subject to Arnona

There are various types of assets that are included in arnona fees, and each is calculated differently.

There is a building — the area of the building, the type of building, the purpose or use of the building, and the place where the building is located. A building’s arnona tax also considers the age of the building, the material from which it is built, and the character of the building.

There is land that is occupied –– which is taxed according to its area, the area it is located, and its purpose or use.

There is also agricultural land — which is taxed according to its area and its use.

The Cost of Arnona — The Calculation

When arnona is calculated, all the previously mentioned items are considered, among others. Another consideration in arnona is whether the property is residential or commercial. Additionally, neighborhoods are zoned in varying ways. More affluent neighborhoods are more expensive, and a local authority can decide how the arnona fee will be calculated. Sometimes shared spaces of a building are calculated (stair wells, parking lots, elevators, etc.), dividing the cost between building residents. Generally external property areas are also included in the final fees, including balconies, bomb shelters, and more.

This Series of Articles

Our law offices are conveniently located in both Jerusalem and close to Tel Aviv, providing legal assistance in numerous areas, including property and arnona law. Israel’s Ministry of Interior (Misrad HaPanim) is responsible for setting rules and regulations and the local authority (or municipal authority) also has the authority to set some of the rates for arnona. In order to equip our clients with some of the basic rules and regulations, we have written a series of arnona articles addressing numerous issues related to arnona.