Eligibility for Compensation Under the Wartime Property Tax Law:
Types of Damages, Conditions, and Preparation for Filing Claims for Construction Sites and Businesses in General
Jun 23, 2025
מאת: איציק סימון
לקבלת ייעוץ מקצועי, סיוע בהגשת תביעות למס רכוש, או בחינת כיסוי הביטוח שלכם – ניתן לפנות לצוות המומחים שלנו, בהתאם לתחום הפנייה:
אתרי בנייה שנפגעו - יש לפנות ישירות לאיציק סימון ☎️ טלפון נייד: 050-5299480 ✉️דוא"ל: itzick@simon-ins.co.il
עסקים שנפגעו במצב החירום - יש לפנות לאמיל אגרונוב, מנהל מחלקת הפרימיום ☎️טלפון נייד: 050-7863363 ✉️ דוא"ל: emil@simon-ins.co.il
אנו כאן כדי לעזור לכם למצות את זכויותיכם מול מס רכוש וגורמי הפיצוי – במקצועיות, במהירות ובאמינות.
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בעתות חירום ומלחמה, שלדאבוננו פוקדים את מדינתנו רבות, נגרמים לעסקים בישראל נזקים ישירים ועקיפים, ולעיתים אף השבתה מלאה של הפעילות העסקית. על מנת להבטיח מיצוי זכויות מול רשויות הפיצוי, חשוב להבין את המסגרת החוקית, ההבחנות בין סוגי הנזקים, ואת אופן ההתנהלות הנכון מול גופי השמאות ומערכת מס רכוש.
להלן 10 היבטים עיקריים שעל כל בעל עסק להכיר לצורך קבלת פיצוי כחוק:
By: Itzick Simon
For professional advice, assistance in filing property tax claims, or reviewing your insurance coverage – you can contact our team of experts, depending on the area of request:
- Damaged construction sites - please contact Itzik Simon directly
Mobile phone: 050-5299480
Email: itzick@simon-ins.co.il
- Businesses affected by the emergency - please contact Emil Agronov, Manager of the Premium Department
Mobile phone: 050-7863363
Email: emil@simon-ins.co.il
We are here to help you exercise your rights against property tax and compensation factors – professionally, quickly and reliably.
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In times of emergency and war, which unfortunately plague our country frequently, businesses in Israel suffer direct and indirect damage, and sometimes even a complete shutdown of business activity. In order to ensure the fulfillment of rights with the compensation authorities, it is important to understand the legal framework, the distinctions between the types of damage, and the correct way to conduct business with appraisal bodies and the property tax system.
Below are 10 main aspects that every business owner must be aware of in order to receive legal compensation:
1. The legal and regulatory framework for compensation
The Property Tax and Compensation Fund Law, 5721-1961, determines the entitlement of victims to compensation for war damage, hostilities, and missile fire. The law defines the types of damage that entitle to compensation, the party responsible for handling it (the Tax Authority), and the claim mechanism, including the use of certified appraisers.
The Property Tax and Compensation Fund Law, 5721-1961, determines the entitlement of victims to compensation for war damage, hostilities, and missile fire. The law defines the types of damage that entitle to compensation, the party responsible for handling it (the Tax Authority), and the claim mechanism, including the use of certified appraisers.
Direct damage : Physical damage to a structure, equipment, goods or property - due to shooting, explosion, shrapnel penetration, etc.
Indirect damage : loss of income, decrease in activity, damage to the supply chain or delay in delivery – as a result of the security situation, but without immediate physical harm.
2. Distinguishing between direct and indirect damage
In order for damage to be recognized as "direct damage" that qualifies for compensation under the Property Tax Law, it must meet the following conditions:
Direct physical damage to equipment, structure or goods.
Proof of a clear causal connection between the injury and the war event.
Immediate documentation: Photograph the damage, report to the Tax Authority and a certified appraiser within the specified time period.
Present evidence of ownership of the damaged property or of permanent use of it.
Damage to a construction site – a unique example of direct damage:
In the event of a missile strike on a construction site, significant damage may be caused to the structure under construction, to equipment and building materials. Recognition of such damage requires immediate notification to the property tax office, immediate documentation, submission of an appraisal opinion and clear identification of the rights holder.
3. Compensation due to direct damage to equipment and structures Conditions for recognizing damage as "direct damage"
When the state recognizes indirect damage (for example, in emergency regulations, or a temporary order, or in a government decision), claims can be filed for:
Loss of revenue for the business.
Wages for employees who cannot be hired and/or do not report to work due to the state of emergency.
Housing and maintenance costs for foreign workers.
Losses due to site closure or cessation of activity.
4. Compensation for indirect damage: When are you entitled to it?
Current financial statements and those of the previous year.
Documentation of actual decrease in revenue.
Signed statements of cessation of activity.
Contracts/Invoices/Cancellations.
Affidavit from the owner or manager regarding the damage suffered by the business.
Opinion of a certified CPA or tax advisor.
5. Conditions for recognizing damage as "indirect damage" - required evidence and documents
The Tax Authority periodically publishes emergency directives, defining the reliefs, conditions, and types of damages for which business owners will be entitled to compensation.
Be careful:
Follow official publications.
File the claim on time.
Act with the guidance of professional consultants.
6. Temporary provisions and adjustments to regulations, what should they be based on?
Active construction sites: It is required to prove the stage of execution, the scope of investment, and ownership (an issue that can sometimes be a bit complex in projects to strengthen existing buildings with tenants living in the apartments during construction).
Contractors' work policies: usually do not include war coverage unless explicitly extended. In mega-projects, this is sometimes done when reinsurers agree to extend in a special way and for a substantial premium.
Equipment of employees or suppliers in the field – the boundaries of coverage are not always clear.
Temporary operational damage – how to document loss of activity.
Bodily and mental injuries are handled in separate tracks (e.g., National Insurance).
7. Special issues in war damages
8. The role of the tax authority appraiser
A certified property appraiser from the Tax Authority is responsible for assessing the damage.
His powers include:
Inspecting the damage on the ground.
Estimating rehabilitation costs.
Preparing an official report determining the amount of compensation.
The injured party may appoint an appraiser on his behalf – a step that is especially recommended when there is a risk of dispute or when the damage is large and complex and its assessment is liable to arouse disputes.
Independent appraiser:
Protects the interests of the business.
Examines the extent of the damage in depth.
Creates a basis for professional negotiations.
Allows the preparation of a second opinion in the event of discrepancies with the Tax Authority.
9. The importance of appointing a private appraiser on behalf of the injured party
In the event of total damage to a structure – its collapse, demolition, or becoming unusable – it is important to involve a real estate appraiser, in addition to the property appraiser.
Real estate appraiser:
Evaluates the value of the demolished building not only according to the cost of construction but also according to market value, planning potential and zoning.
Takes into account parameters such as planning impacts, building rights, improvement potential, or unique limitations.
Contributes to determining the value of the structure as capital, especially when there is a dispute over the basis for compensation (cost versus value).
In such cases, a real estate appraiser's opinion can be the decisive factor in the amount of compensation that will be determined - and sometimes even a necessary condition for a fair discussion of the question of compensation.
10. Real estate appraiser - in cases of total damage to the structure and in general
Summary
Businesses affected by war or a security incident must act quickly and accurately, with full documentation and consultation with professionals:
Property appraisers, real estate appraisers, accountants, and lawyers specializing in property taxes are essential to the success of the claim.
Correct submission – on time, with all required documents and accompanied by the appropriate professionals – is a condition for fully exercising rights.
Businesses affected by war or a security incident must act quickly and accurately, with full documentation and consultation with professionals: property appraisers, real estate appraisers, accountants, and lawyers specializing in property taxes are essential to the success of the claim.
Correct submission – on time, with all required documents and accompanied by the appropriate professionals – is a condition for fully exercising rights.
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