{"id":8609,"date":"2025-10-05T12:08:44","date_gmt":"2025-10-05T12:08:44","guid":{"rendered":"https:\/\/aboulafia.co.il\/?p=8609"},"modified":"2025-10-05T12:08:44","modified_gmt":"2025-10-05T12:08:44","slug":"the-house-company","status":"publish","type":"post","link":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/","title":{"rendered":"The \u201cHouse Company\u201d"},"content":{"rendered":"<p style=\"text-align: left;\"><em>Feel free to join the\u00a0<\/em><a href=\"https:\/\/www.facebook.com\/groups\/taxinisrael\/\" target=\"_blank\" rel=\"noopener\"><em>Tax in Israel Facebook group<\/em><\/a><\/p>\n<p style=\"text-align: left;\">In the previous\u00a0<a href=\"http:\/\/taxinisrael.blogspot.co.il\/2014\/09\/the-company.html\" target=\"_blank\" rel=\"noopener\">post<\/a>, we saw an example of how a company can, under certain circumstances, have its income treated as taxable in the hands of the shareholders.<\/p>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">The one other example under Israeli law is the \u201chouse company\u201d. In order to qualify as such a company, there are two conditions that must be met:<\/div>\n<div><\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">1. The company is owned and controlled by no more than 5 people. For these purposes, first-degree family members and business partners count as a single petson.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">2. The company deals primarily in the property business. The type of property and the type of income (i.e. rentals, capital gains etc) are not relevant.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div>\n<p style=\"text-align: left;\">At the request of the company, the company profits can be taxed in the hands of the shareholders (as property income \u2013 and taxed accordingly as passive income for both Income Tax and Bituach Leumi purposes), according to each shareholder\u2019s share of the profits. This is different to a \u201cFamily Company\u201d wherby only one of the shareholders is taxed on the entire profit.<\/p>\n<p style=\"text-align: left;\">Furthermore, the application to be a \u201chouse company\u201d need not be made in advance, and can be changed every year \u2013 as per the choice of the company and the shareholders. Again, this is different to a \u201cFamily Company\u201d where the status must be requested soon after incorporation and once the status has been changed by the Company, it cannot reaquire such a status.<\/p>\n<p style=\"text-align: left;\">The \u201cFamily Company\u201d can therefore, potentially, be a very attractive option for those who want to invest in property across the world, but without owing the property outright (e.g. for inheritance tax purposes).<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Feel free to join the\u00a0Tax in Israel Facebook group In the previous\u00a0post, we saw an example of how a company can, under certain circumstances, have its income treated as taxable in the hands of the shareholders. The one other example under Israeli law is the \u201chouse company\u201d. In order to qualify as such a company, [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,253],"tags":[],"class_list":["post-8609","post","type-post","status-publish","format-standard","hentry","category-israeli-taxation-en","category-binyamin-radomsky-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"og:description\" content=\"Feel free to join the\u00a0Tax in Israel Facebook group In the previous\u00a0post, we saw an example of how a company can, under certain circumstances, have its income treated as taxable in the hands of the shareholders. The one other example under Israeli law is the \u201chouse company\u201d. In order to qualify as such a company, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/\" \/>\n<meta property=\"og:site_name\" content=\"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-05T12:08:44+00:00\" \/>\n<meta name=\"author\" content=\"Rachel Levin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rachel Levin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/\",\"url\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/\",\"name\":\"The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\",\"isPartOf\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/#website\"},\"datePublished\":\"2025-10-05T12:08:44+00:00\",\"author\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747\"},\"breadcrumb\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u05d3\u05e3 \u05d4\u05d1\u05d9\u05ea\",\"item\":\"https:\/\/aboulafia.co.il\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The \u201cHouse Company\u201d\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#website\",\"url\":\"https:\/\/aboulafia.co.il\/en\/\",\"name\":\"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\",\"description\":\"Just another WordPress site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/aboulafia.co.il\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747\",\"name\":\"Rachel Levin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g\",\"caption\":\"Rachel Levin\"},\"url\":\"https:\/\/aboulafia.co.il\/en\/author\/rachel\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/","og_locale":"en_US","og_type":"article","og_title":"The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","og_description":"Feel free to join the\u00a0Tax in Israel Facebook group In the previous\u00a0post, we saw an example of how a company can, under certain circumstances, have its income treated as taxable in the hands of the shareholders. The one other example under Israeli law is the \u201chouse company\u201d. In order to qualify as such a company, [&hellip;]","og_url":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/","og_site_name":"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","article_published_time":"2025-10-05T12:08:44+00:00","author":"Rachel Levin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Rachel Levin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/","url":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/","name":"The \u201cHouse Company\u201d - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","isPartOf":{"@id":"https:\/\/aboulafia.co.il\/en\/#website"},"datePublished":"2025-10-05T12:08:44+00:00","author":{"@id":"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747"},"breadcrumb":{"@id":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/the-house-company\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u05d3\u05e3 \u05d4\u05d1\u05d9\u05ea","item":"https:\/\/aboulafia.co.il\/en\/"},{"@type":"ListItem","position":2,"name":"The \u201cHouse Company\u201d"}]},{"@type":"WebSite","@id":"https:\/\/aboulafia.co.il\/en\/#website","url":"https:\/\/aboulafia.co.il\/en\/","name":"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","description":"Just another WordPress site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/aboulafia.co.il\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747","name":"Rachel Levin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g","caption":"Rachel Levin"},"url":"https:\/\/aboulafia.co.il\/en\/author\/rachel\/"}]}},"_links":{"self":[{"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/posts\/8609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/comments?post=8609"}],"version-history":[{"count":1,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/posts\/8609\/revisions"}],"predecessor-version":[{"id":8610,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/posts\/8609\/revisions\/8610"}],"wp:attachment":[{"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/media?parent=8609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/categories?post=8609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aboulafia.co.il\/en\/wp-json\/wp\/v2\/tags?post=8609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}