In the context of Amendment 264 to the Israeli Income Tax Ordinance, Section 122(F) was added to provide a benefit for single-residential-unit holders. The benefit allows a single-residential-unit holder who rents out their unit and simultaneously pays rent to rent another residential unit in Israel for their own residence, or pays for the residence of their spouse who resides with them in a nursing home or geriatric hospital, to deduct the "favorable rental fees" they paid from the rental income they receive from the rented unit, up to NIS 90,000 per year.

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The benefit will apply to rental income received from the beginning of 2023 onwards, and will only be given to those who report and pay tax under Section 122 of the Ordinance, within 30 days of the end of the tax year in which the rental income was received, as long as there is any rental income remaining after deducting the favorable rental fees they paid.

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It is important to note that in the case where the rental income for residential units for which 10% was paid exceeds NIS 375,000 in 2023, there is a duty to file an annual tax return.

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It should also be noted that, according to the position of the Israel Tax Authority, in cases where the favorable rental fees paid are higher than the rental income from the rented unit, the difference will not be considered as a loss that can be deducted against any income, neither in the same tax year nor as a carry-forward loss.