There are moments in the real estate market when, no matter how much experience you have accumulated, something shifts beneath the surface, and whoever doesn't notice in time finds out the hard way. Moments that smart investors know how to identify in advance.
2026 is going to be exactly such a moment.
The 2025 Economic Efficiency Bill (the “Arrangements Law”) hides between its lines one small clause, but its impact on real estate investors, Airbnb hosts, and even on the yield itself may be far greater than it seems.
What is the revolution?
The state is requiring all short-term rental platforms, Airbnb, <a href="https://www.linkedin.com/redir/redirect?url=http%3A%2F%2FBooking%2Ecom&urlhash=9yVP&trk=article-ssr-frontend-pulse_little-text-block">Booking.com</a> and the like, to transmit to the Israel Tax Authority a detailed annual report on every host operating through them in Israel.
Not a general report. Not an estimate.
A full report. On every transaction. For every property. For every owner.
And this is nothing less than a regulatory bang.
What will the platforms be required to provide?
More than most people understand:
- Full identifying details of the property owner
- The exact address of every rented apartment
- The annual amount received for each property
- The number of transactions
- The commissions charged
- In other words: every piece of data that reflects exactly how much you earned, and not how much you declared
And it's worth knowing: Israel is not inventing anything. It is simply closing a gap.
Because in the world, this has been happening for a long time.
In the European Union such information has been collected since 2023 under the DAC7 standard.
In the US, the IRS issues every property owner a 1099-K form and requires platforms to submit full reports.
New York, Los Angeles and Miami do not allow any property to operate without registration, regulation and occupancy reporting.
And in Israel, 2026 will be the year of catching up with the rest of the world.
But there is a point many Israelis miss, and this is where the critical part for real estate investors abroad begins:
Not in every country is it permitted to simply put an apartment on Airbnb and wait for a booking. In many places it is not legal without a permit.
Yes, even in the countries that are “favorites” of Israeli investors.
As real estate investors abroad, this demands a change of thinking. Because now we have reached the stage where every number must be real:
Gross? Net? Effective tax? Permitted expenses? Reporting method?
Whoever doesn't understand this doesn't really know what his yield is.
And if there is one thing I tell every investor in the first conversation:
A yield that doesn't include tax is not a yield. It is a fantasy.
Let's talk in real numbers, in the countries we invest in all the time:
Greece: not only tax. Also a permit.
Many think that Greece is the “Wild West” for Airbnb.
In practice, it absolutely is not.
In Greece, to rent out an apartment short-term, the following is required:
- Official registration in the tourism registry (AMA)
- Obtaining a binding registration number for each property
- Including the registration number in every listing
- And in certain cases, compliance with regional regulations that limit the number of nights or the number of properties
Whoever rents out an apartment without registration is exposed to heavy fines that not a few investors discovered only in retrospect.
And of course, all rental income is subject to progressive tax:
- First €12,000: 15%
- €12,001 - 35,000: 35%
- Above €35,000: 45%
On the net, after recognized expenses such as repairs, maintenance and management, but only for ordinary rental.
For short-term rental, the deduction requirements are greatly narrowed for anyone not defined as a registered business.
Romania: a tourism permit is mandatory before short-term rental
In Romania too, which Israelis like for its financial certainty, you cannot rent short-term freely:
- An official tourism permit from the local authority is required.
- Sometimes there are conditions regarding safety, equipment, detectors, insurance and more.
- Only after obtaining the permit can the property legally operate as short-term accommodation.
As of 2024, tax on rental in Romania is simple:
- Flat tax: 10%
- Standard deduction: 20% of gross (without receipts)
That is to say:
Only 8% effective tax.
No bureaucracy, no tracking of expenses, and that is why Romania continues to be a preferred destination for Israelis who want simplicity and certainty.
Georgia: simple, cheap, and very clear
Here the picture is the opposite:
Once you register as a landlord, you enjoy one of the friendliest tax regimes in the world:
- Tax on short-term/long-term rental: 5% of gross
- No expenses.
- No headaches.
Whoever doesn't register pays 20% of net, with permitted expenses, unnecessary bureaucracy, and loss of the main advantage.
That is why almost all the investors I accompany in Georgia choose the 5% track.
How does all this relate to you?
Because from now on, before you look at an apartment, building, project or Airbnb, you need to ask a few simple questions:
- Is the yield I see gross or net?
- What is the tax rate in the country? On gross or on net?
- Am I even allowed to rent short-term - or is an official permit required?
- Are there expenses I'm allowed to deduct, or am I stuck with tax on income “on paper”?
Only after you have answers to these questions is there a real yield.
Before that? It is an illusion.
The transition to 2025 is not a threat.
It is an opportunity:
Whoever understands the framework will know how to calculate a real yield, monitor risks, and identify projects that are worth more when the market becomes orderly and transparent.
And I say this after accompanying over 300 transactions:
A good investment is not the one that yields the most on paper, but the one that produces the most net after law, tax and licensing.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית