The buyer obtains a purchase permit from the Council of Ministers through the Land Authority
Agency: Land Authority
When the buyer of a property is either a domestic or a foreign a company it needs to obtain a purchase permit from the Council of Ministers in order to conduct the transfer. Companies submit a request for a purchase permit with the Land Authority. They have to provide a copy of the title deed, information about the land and the seller, and also a copy of the certificate of incorporation. Afterwards, the Land Authority will be in touch with the Council of Ministers. If their opinion is positive then the Land Authority submits the request to the Council of Ministers for its approval at its next session. After the approval is received the transaction file can be opened at the Land Authority. The step for obtaining a security check was cancelled by a circular issued on February 7, 2017 by the Chairman of the Land Authority.
Time and cost: 14 days, no charge
Obtain tax clearance certificate from the Ministry of Finance
Agency: Ministry of Finance
The tax clearance from the Ministry of Finance must be obtained. The obtained certificate shows that all taxes, including income taxes and VAT have been paid. The applicant must fill out a form and give it to the agent who checks on his computer for any overdue taxes. Parties can bring the form initially obtained from the land registry in Procedure 1. Lawyers generally have copies of the form at their offices.
Time and cost: 1 day, no charge
Obtain tax clearance certificate from the Municipality
Agency: Municipality
The clearance obtained from the Ministry of Finance is needed in order to obtain the clearance from the Municipality.
Several departments will be involved in this clearance. The Municipality visits the site, and requests the architect’s and mayor’s signatures.
Time and cost: 2 days, USD 42
Open the transaction file at the Land Authority and obtain the property valuation
Agency: Land Authority
The land registry examines the documents and the property file and evaluates the property to determine the taxes to be paid.
Documents required:
- Incorporation documents
- Board resolutions to buy/sell
- Identification of all parties
- Notarized POAs
- Tax clearance from municipality (obtained in procedure 2)
The valuation is only needed if the property has not been assessed in the past 5 years–which indeed applies to this case. If it has, the value should be in the title file or the parties give an estimate. If not, then a valuation is required. The official valuation is done by a committee that uses a GIS-based system to assess the property’s value. The registry will then take the remaining time to make its estimate of the value based on the higher of either the parties estimate or the official valuation.
Time and cost: 10 days, USD 7 (USD 6-8)
Proceed to Land Authority to sign valuation
Agency: Land Authority
The buyer and seller must agree to the new assessment and sign. Once they have agreed, the new amount to be paid is given to them.
Time and cost: 1 day, no charge
Pay fees at commercial bank
Agency: Commercial Bank
The payment of Stamp Duty is made at the Commercial Bank (Bank of Palestine).
Time and cost: 1 day, USD 5,573 (Transfer fee: 3% (1% paid by buyer; 2% paid by seller) + Stamp duty: USD)
Bring receipts to the Land Authority and finalize the transaction
Agency: Land Authority
Both buyer and seller must go to the land registry. They need to show their IDs and answer questions concerning the transfer. Then both parties sign the documents and the sale is concluded.
Time and cost: 7 days, no charge
