In Israel, operating a short-term rental may require obtaining permits, licenses, or registrations, particularly in certain municipalities. In some cities, like Tel Aviv and Jerusalem, to legally operate a short-term rental, property owners may need a business license. This involves applying to the local municipality and ensuring the property meets various health, safety, and zoning regulations.

Properties must comply with health and safety standards, which might include fire safety measures, adequate sanitation facilities, and structural safety requirements. Some municipalities may require an inspection to verify compliance before issuing a license.

Inform your neighbors and your landlord Consider the implications on landlords and neighbors of converting your property to a vacation rental. If you rent, your landlord likely isn’t keen on you using your condo or apartment as a business operation without first giving notice. There might even be a no-sublet clause in your rental agreement.

Make sure your neighbors know who’s in charge of the property, providing them with your contact details (or your management’s contact details) in case of emergency or problems. Remind incoming guests of any house rules or regulations, such as enforced quite hours. As for a landlord – keep them in the loop; the no-sublet clause may be negotiable, especially if it’s short-term or a one-time occurrence.

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Income Tax: Income generated from short-term rentals is subject to income tax. Property owners must report their rental income and comply with relevant tax regulations.

VAT (Value-Added Tax): While private individuals renting out their properties on a short-term basis are generally not required to charge VAT, companies or individuals renting multiple properties might need to register for VAT and charge it on their rentals.

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Israel does not have a specific national tourism fund or a dedicated tourist tax. It's important to note that while there isn't a separate tourist tax, the standard VAT applies to most transactions, and the government supports tourism development through various funding initiatives.

Non-Israelis are exempt from the 17% VAT that Israelis must pay, so hosts must ask their guests for a copy of their passport and the B2 Visa for tax purposes.

Hosts must comply with data privacy laws when collecting and handling guest information. This includes ensuring the secure storage and handling of personal data.

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Properties must comply with health and safety standards, which may include fire safety measures, structural safety, and adequate sanitation facilities.

Some municipalities may require an inspection to verify compliance before issuing a license.

Platform accountability requirements for short-term rentals in Israel are limited, with no national legislation mandating platforms like Airbnb or Booking.com to enforce data sharing, tax collection, or licensing verification. Authorities focus on:

• Data Sharing: No formal requirement; authorities may monitor platforms independently.
• Tax Compliance: Hosts must report rental income and pay applicable taxes; platforms are not required to collect taxes.
• Licensing Verification: Rules vary by municipality, with no national mandate for platforms to verify licenses.
• Dispute Resolution: Platforms provide mechanisms, but these are not legally mandated.

Regulation primarily targets hosts, and requirements vary by municipality. Review local laws or consult experts for specific guidance.

While this legislation does not specifically mention short-term rentals, its principles can be interpreted to encompass such services, given that they are part of the hospitality sector. Therefore, hosts offering short-term rentals should be mindful of these anti-discrimination provisions to ensure compliance.

Additionally, platforms like Airbnb have implemented their own anti-discrimination policies to promote inclusivity and prevent bias among hosts and guests. For instance, in response to various discrimination complaints, Airbnb introduced a non-discrimination clause for hosts, emphasizing zero tolerance for bias.

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Israel does not have specific legislation for data sharing requirements in short-term rentals. Key considerations include:

• No Specific Law: General data protection laws, like the Protection of Privacy Law, 5741-1981, apply.
• Data Protection: Hosts and platforms must collect and process data lawfully, fairly, and transparently, respecting rights like access, rectification, and erasure.
• Compliance Practices:
  • Obtain explicit consent for data collection.
  • Collect only necessary data (data minimization).
  • Implement strong security measures.
  • Retain data only as long as necessary.
  • Ensure adequate protection for cross-border data transfers.

Staying updated on legal changes is essential as regulations evolve.

While not a legal permit, it is advisable for property owners to obtain insurance coverage that specifically includes short-term rental activities. This can help protect against potential liabilities and property damages.

In Israel, short-term rentals must comply with zoning laws and cultural heritage rules. Zoning laws regulate land use through the National Planning and Building Law, with local municipalities enforcing these rules. Properties in culturally or historically significant areas may face additional restrictions. Property owners should consult local authorities to ensure compliance.

Adherence to environmental health regulations may be required, especially in terms of waste management and noise control, to ensure that the rental does not negatively impact the local community.

Israel has national tenant protection laws to ensure fair rental practices:

• Tenant Protection Law, 1972: Offers protections to "protected tenants," including rent control and security of tenure, mainly for older agreements.
• Fair Rent Law, 2017: Sets standards for rental properties, limits security deposits to three months’ rent, defines repair timelines, and regulates lease termination and renewal.

These laws aim to protect tenants’ rights while clarifying landlords' responsibilities.

Yes, foreign residents earning rental income from short-term rentals in Israel are required to report this income to the Israeli Tax Authority and pay applicable taxes. The Israeli tax authorities consider short-term rental income as business income, subjecting it to income tax, social security contributions (Bituach Leumi), and, in certain cases, Value Added Tax (VAT). Foreign landlords must register as businesses and submit regular tax reports, including bi-monthly or monthly reports and an annual tax return.

While Israel doesn't have specific laws just for short-term rental platforms, they still need to follow general rules. These include:

• Privacy: Platforms must protect user data according to Israeli privacy laws.
• Taxes: They need to cooperate with tax authorities regarding income generated through the platform.
• Consumer protection: They must ensure fair practices and transparency for both hosts and guests.

Essentially, even without dedicated laws, short-term rental platforms in Israel must operate legally and ethically within the existing regulatory framework.

Yes, Israel's Consumer Protection Law, 1981 applies to various transactions, including short-term rentals (STRs). This law ensures fair trading practices and safeguards consumer rights, such as the right to receive accurate information about services and protection against unfair contract terms. Therefore, hosts offering short-term rentals must provide clear and truthful details about their properties and adhere to fair contract practices to comply with consumer protection regulations. Additionally, the Fair Rent Law, 2017 sets standards for rental properties, ensuring they are fit for habitation and outlining the rights and obligations of both landlords and tenants. However, it's important to note that this law does not apply to short-term rentals of three months or less.

Non-residents can own property in Israel but face specific rules:

• Property Ownership: Non-residents can buy private property but may face restrictions on state-owned or agricultural land.
• Purchase Tax: Non-residents pay 8% tax on property value up to ₪6,055,070 and 10% above that.
• Restrictions: Some areas, like strategic or security-sensitive zones, have ownership limits.
• Legal Compliance: Governed by the Israel Land Law, ensuring property rights and obligations.

Consult a legal expert for guidance on these regulations.

The Fair Rent Law, 2017, which regulates residential leases, explicitly excludes these short-term rentals from its provisions.

This classification means that the specific protections and obligations outlined in the Fair Rent Law do not apply to short-term rental agreements. However, general contract law and other relevant regulations still govern these arrangements.

It's important for both landlords and tenants to be aware of this distinction to understand their rights and responsibilities fully. Consulting with a legal professional can provide clarity tailored to individual circumstances.

Yes, Israel has regulations concerning special national events. These regulations are in place to ensure public safety, security, and order during events of national significance, such as:

• National holidays and memorial days: These include Independence Day, Memorial Day for Fallen Soldiers and Victims of Terrorism, Holocaust Remembrance Day, and others.
• Large-scale public gatherings: This can include demonstrations, protests, rallies, and celebrations.
• Events with heightened security concerns: This could involve events with the presence of high-profile figures or events that may be targeted for security threats.

These measures are tailored to the specific circumstances of each event or emergency, aiming to maintain public order and safety.

For short-term rentals in Israel, penalties for violating national or local regulations can include:

• Fines: Non-compliance with tax laws, zoning rules, or licensing requirements may result in significant fines.
• Closure Orders: Authorities may issue orders to cease rental operations for unlicensed properties.
• Legal Action: Persistent violations can lead to legal proceedings or further penalties.

Compliance with tax, zoning, and other legal obligations is essential to avoid these consequences.