Lumini's CEO Fights Tax Authority Over Reduced Purchase Tax on Tel Aviv Apartments

Tzipi Ozer-Armon, CEO of medical device company Lumini and a director at El Al, is contesting a tax assessment on two apartments she purchased in Tel Aviv for 22.5 million shekels. Ozer-Armon claims the apartments, located in an old building in north Tel Aviv, are uninhabitable and intended for demolition to construct a new six-story building. She argues for a reduced purchase tax rate, equivalent to that on land with a building permit.

The Israel Tax Authority recently rejected her request, ruling that the apartments should be taxed as residential properties. This decision creates a tax gap estimated at 1 million shekels, with the authority demanding a higher tax rate, between 8% and 10%, for non-primary residences.

Ozer-Armon purchased the two apartments in April 2025 from Gideon and Rona Federman, owners of the Dan Hotel chain. The properties include a ground-floor unit of 102 square meters for 6.75 million shekels and a second-floor unit of 104 square meters with an 111-square-meter roof terrace for 15.75 million shekels. Following the purchase, Ozer-Armon acquired full ownership of the plot.

The Tax Authority stated that demolition work had not yet begun and the apartments were still occupied, making her claim of uninhabitability invalid at the time of purchase. They also noted that the building permit, issued in March 2023 and registered to the sellers, was non-transferable without local committee approval and was set to expire in March 2026. The authority indicated that Ozer-Armon could reapply for a tax assessment review only after the building is demolished.

Ozer-Armon plans to appeal the Tax Authority's decision to the court. No comment was received from Ozer-Armon by the time of publication.