Investment Incentives in Israel

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Israel flag Israel: Investing

Incentives or guarantees

Forms of Aid
Assistance is going to depend on the location of the investment and the nature of the project, amount of investment and the degree of foreign participation. This will be for financial assistance, financial incentives, grants, depreciation on diminishing values or loan guarantees.
Privileged Domains
Research and development, industry, tourism, employment generation, jobs for emigrants and training.
Privileged geographical sectors
The first zone constitutes the North of country (the most favored), Galilee, Golan, Jerusalem (for high technology industries),Beer Sheva, south of Neguev and Eilat. The second consists of Jerusalem (for all other industries), St Jean d'Acre, Kyriat Malachi, Kyriat Gat and Yokneam. The last covers the coastal plain and the center of the country.
Privileged Geographical Zones
Eilat in the country's south.
Country Risk

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Tax incentives offered to foreign investors

Special tax treatments
Israel grants a number of significant tax incentives which have the effect of eliminating or substantially reducing the tax rate for companies. There are various other incentives available such as in the fields of the tourism industry, employment incentives, international trading company incentives, the building of dwellings for rental, research and development (R&D) where bi-national funds have been established to promote joint ventures, and incentive training programs with the granting of loans for the encouragement of small businesses. For more information on tax incentive programs you can consult the Investment Promotion Centre (IPC).
Useful Links
Ministry of Industry and Trade
Israel's Investment Promotion Center

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