Compare countries & regions

Israel vs United Arab Emirates

Israel and United Arab Emirates side by side — economy, tax, company setup, visas, housing and study, from official and open data.

Economy & society

Metric Israel United Arab Emirates
Population (2024) 9.97M 10.99M
GDP (current US$) (2024) $540.38B $552.32B
GDP per capita (2024) $54,177 $50,274
GDP growth (annual) (2024) 0.9% 4.0%
Inflation (annual) (2024) 3.1% 1.7%
Unemployment (2025) 3.5% 2.2%
FDI net inflows (2024) $14.78B $45.64B

Business & tax

Metric Israel United Arab Emirates
Corporate tax General national corporate income tax rate. Sub-national tax is excluded and shown separately where it applies — a cell reading "15.825% +7–21% municipal" means the national rate plus a local business tax. "on trading income" and "on distributed profit" mark countries whose headline rate does not reach all profit. 9%
Top income tax Top marginal rate on employment income, NATIONAL layer only — that is what makes the column comparable. Where a sub-national layer applies it is added to the cell rather than folded into the number, so "20% +29–35% municipal" is Sweden's national rate plus its municipal one. Social-security contributions are excluded throughout. 0%
Capital gains Default rate on long-term gains from listed securities, for an individual. Varies by asset, holding period and residency. Where one percentage cannot state the answer the cell says so instead: "effective" = a fixed share of the gain is taxed as ordinary income; "on deemed return" = the tax falls on a notional return, not on realised gains; "as income" = there is no separate capital-gains tax; "Varies" = no single general rate; "No general CGT" = individuals are not taxed on capital gains, though gains that are trading in nature and gains realised in a business still can be. No general CGT
VAT / GST Standard statutory rate. Where one percentage cannot state it the cell says so: "effective" = the statutory rate applies to a reduced tax base; "temporary" = a time-limited rate charged instead of the statutory one, with its end date; "by supply" / "by state" = a band structure with no single standard rate; "No VAT or GST" = the tax does not exist there, which is not a 0% rate. Reduced, zero and exempt categories are not shown. 18% 5%
Common entity The private limited-liability form most commonly used by foreign founders. Ltd
Min. capital Statutory minimum share capital, converted to USD. Often not required to be paid up in full at registration. $13,600
Registration fee Government registration fee only, converted to USD. Notary, agent and filing services are not included. $8,200
Processing days Typical registry processing time once a complete filing is accepted — not the end-to-end setup time. 14
Remote setup Whether registration can be completed without the founder being physically present. Yes
Digital nomad visa Whether a dedicated digital-nomad or remote-work visa exists. A country without one may still allow remote work on another status. No Yes
DNV income req. (mo) Minimum income the programme requires, converted to USD. Thresholds are set in local currency and move with it. $5,000

Figures are headline national values gathered for comparison, not tax or legal advice. Definitions differ between countries — read each row's basis before comparing, and verify against the official authority before acting.

Topic by topic

Company Registration

Israel

You register a private limited company (Ltd) online with the Registrar of Companies at the Corporations Authority, which issues a nine-digit company number. You then register with the Tax Authority for income tax, VAT and withholding, and with National Insurance (Bituach Leumi).

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United Arab Emirates

In the UAE you can set up on the mainland (licensed by the emirate's economic department) or in a free zone (100% foreign ownership, own registry). The choice affects ownership, office requirements and where you can trade. A trade licence defines your permitted activities.

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Business Banking

Israel

Residents open an account with a valid passport or Israeli ID, a tax identification number and proof of address; you almost always apply in person. Non-residents face much tighter rules and many banks decline them — a few institutions (e.g. Bank of Jerusalem) offer dedicated non-resident accounts requiring proof of source of funds. The Bank of Israel supervises banks under strict AML/CTF rules.

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United Arab Emirates

The UAE has a well-developed banking sector with local and international banks and strong digital services. Residents can open accounts with an Emirates ID and residence visa; some banks offer limited non-resident accounts. The Central Bank of the UAE regulates banks.

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Investment

Israel

Israel is highly open to foreign investment, promoted by Invest in Israel (Ministry of Economy), with no exchange controls and an innovation-driven economy. The Law for the Encouragement of Capital Investments offers reduced tax for 'preferred enterprises', and the Israel Innovation Authority provides R&D grants; profits repatriate freely.

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United Arab Emirates

The UAE strongly courts foreign investment: since 2021, 100% foreign ownership is allowed for most mainland activities, and free zones offer full ownership with tax and customs benefits. There are no exchange controls, so capital and profits repatriate freely; investment offices in each emirate provide incentives and support.

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Tax System

Israel

Israel taxes residents on worldwide income at progressive rates. Employers withhold tax monthly, and returns are filed with the Israel Tax Authority; new immigrants (olim) and returning residents get significant tax benefits on foreign income for a period.

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United Arab Emirates

The UAE has no personal income tax on salaries. A federal Corporate Tax applies to business profits above a threshold, and VAT applies to most goods and services. The Federal Tax Authority administers corporate tax and VAT.

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Work Visa

Israel

Foreign workers enter on a B/1 work visa; a licensed Israeli employer first obtains a permit from the Population and Immigration Authority (PIBA), then you apply for the visa at an Israeli mission and receive a work-purpose stay.

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United Arab Emirates

Working in the UAE requires a work permit and a residence visa, typically sponsored by an employer or a free-zone company. The Ministry of Human Resources and Emiratisation (MoHRE) governs mainland employment; free zones issue their own permits. There is no personal income tax on salaries.

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Student Visa

Israel

Israel's A/2 student visa covers foreign students at higher-education institutions and at yeshivas. Official guidance lists admission, tuition confirmation, means of living, passport validity and a current photo among the core requirements. The A/2 permit can be issued for up to one year, with an entry permit for the visa duration. Applications go to a Population and Immigration office or a local Israeli mission depending on location. A/2 is not general work permission.

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United Arab Emirates

International students in the UAE generally hold a student residence visa sponsored by their licensed higher-education institution — universities, including international branch campuses, usually handle the process for you. Requirements include admission, a medical test and valid health insurance, with visas issued via ICP or GDRFA in Dubai. Worth knowing: outstanding students may instead qualify for a long-term Golden Visa.

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Tourist Visa

Israel

Short visits to Israel run through the visitor-visa and border-control framework. Visa-exempt nationals may still have to satisfy entry conditions at the border, and entry can be affected by passport validity, purpose of visit, return travel, funds and security screening. Nationals who need a visa should use the responsible Israeli mission for current document rules. A visitor stay is not a work authorisation.

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United Arab Emirates

Nationals of many countries enter the UAE visa-free or get a visa on arrival; others apply for a tourist or visit visa before travelling, typically for 30, 60 or 90 days and often extendable. Applications can go through the federal ICP, through GDRFA if you are entering via Dubai, or through an airline, hotel or licensed agent. Visit visas never permit employment.

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Permanent Residency

Israel

Israel's Law of Return lets Jews and eligible family immigrate (Aliyah) and receive citizenship almost immediately, so most eligible arrivals skip permanent residence entirely. Non-eligible foreigners generally obtain temporary (A-5) residence — for example through marriage to a citizen or long lawful stay — which can progress to permanent residency, via the Population and Immigration Authority.

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United Arab Emirates

The UAE has no traditional permanent residence, but the long-term Golden Visa (5 or 10 years, renewable) offers stable, largely self-sponsored residence for investors, entrepreneurs, skilled professionals and outstanding talents. It allows sponsoring family.

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Citizenship

Israel

In Israel there are two very different paths. Jews and eligible family gain citizenship almost immediately under the Law of Return (Aliyah), and Israel permits dual nationality on this route. Everyone else uses discretionary naturalization: permanent residence, roughly 3 of the last 5 years in Israel, some Hebrew, an oath, and usually renouncing the prior nationality — decided by the Minister of the Interior.

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United Arab Emirates

UAE citizenship is very rarely granted; a 2021 reform allows authorities to nominate select investors, professionals, talents and their families. Most residents remain long-term visa holders, and nominated citizens may retain their original nationality.

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Employment & Labor

Israel

Israeli employment is governed by a set of laws and extension orders rather than one code: a national minimum wage, mandatory pension contributions, severance pay of about a month per year, recuperation pay, and paid annual and sick leave. Dismissal needs a fair hearing, and the Labour Courts handle disputes.

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United Arab Emirates

UAE mainland employment follows the federal labour law administered by MoHRE: written fixed-term contracts, a 48-hour week, 30 days' annual leave after a year, and an end-of-service gratuity instead of a pension for expatriates. Free zones such as DIFC and ADGM have their own employment laws; there is no personal income tax.

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Import & Export

Israel

Israeli trade clears through the Tax Authority's Customs using an electronic single window. Importers open a customs file, classify goods by HS code, and pay import duty (often zero under Israel's US and EU free-trade agreements) plus 18% VAT and, on some goods, purchase tax. Many products need Standards Institution (SII) approval.

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United Arab Emirates

UAE imports and exports go through the Federal Customs Authority and the emirate customs bodies (e.g. Dubai Customs). You need a valid trade licence and a customs importer/client code, classify goods under the GCC Common Customs Tariff (mostly 5% duty), and pay 5% VAT on imports. Free-zone goods are treated as outside the customs territory.

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Trademark & IP

Israel

Israeli trademarks are registered with the Israel Patent Office (ILPO), through the Trade Marks Registrar. You search the register, file under Nice classes, and the ILPO substantively examines the mark before publishing it for a three-month opposition period. An Israeli trademark lasts 10 years and is renewable; Israel is a Madrid Protocol member.

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United Arab Emirates

UAE trademarks are registered with the Ministry of Economy and Tourism. You search the register, file an application under Nice classes, and after examination it is published (in the Trademark Bulletin and newspapers) for a 30-day opposition period. A UAE trademark lasts 10 years and is renewable; the UAE has joined the Madrid Protocol, easing international filing.

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Jobs

Israel

Israel's public employment service is built around residents holding an Israeli ID, so for most foreign candidates it is not the practical channel — the search runs on employer career pages, professional networks and recruitment firms instead. The second thing that shapes a search here is language, and it splits the market rather than gating it: high-tech, cybersecurity and life-sciences roles often operate in English, while many public-facing roles require Hebrew. A legal work route, and qualification recognition where the profession calls for it, both have to be settled before employment begins.

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United Arab Emirates

The UAE runs two parallel employment regimes, and which one applies to you depends on where your employer is registered: mainland private-sector employment is governed by the Ministry of Human Resources and Emiratisation, while free-zone employers such as DIFC and ADGM fall under their own free-zone authority and rules. That distinction changes the rulebook behind your contract, so it is the first thing to establish about any offer. Most foreign workers need both a work permit and an employer-sponsored residence visa, jobs are advertised on company sites, free-zone portals and commercial boards, and Emiratisation targets apply to many private-sector employers.

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Salaries

Israel

Israeli salary planning has more moving parts than most: gross pay, income-tax withholding, National Insurance, health-insurance contributions, pension contributions, severance arrangements and sectoral expansion orders all sit in the picture. Pension and severance are the ones that matter most beyond the headline, because they can materially change total employer cost rather than just your deductions. Foreign employees should confirm whether their deductions and benefits follow resident or foreign-worker rules.

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United Arab Emirates

The UAE splits the question by nationality: there is no general statutory minimum wage for expatriate workers, whose pay is set by contract, while a minimum wage applies to Emirati nationals in the private sector from 2026. Salaries are paid through the Wage Protection System, which requires timely electronic payment — so late or cash payment is a compliance issue, not just a grievance. And because there is no personal income tax on salaries, the gross figure quoted is effectively what arrives.

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Scholarships

Israel

Israel offers Israeli Government Scholarships for international students (administered through the Council for Higher Education and related bodies), alongside university scholarships and programs such as MASA for certain study experiences. Many graduate programs at Israeli universities also carry their own funding. Explore the scheme and university sites and apply by the deadline.

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United Arab Emirates

In the UAE, funding for international students comes mainly through the universities, several of which offer generous, often fully funded scholarships — for example Khalifa University, Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), NYU Abu Dhabi and Sorbonne University Abu Dhabi. Explore each university's scholarship pages, confirm coverage (tuition, stipend, housing) and apply by the deadline.

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Study Abroad

Israel

To study in Israel you apply to the university, then, once admitted, apply for an A/2 student visa through an Israeli mission, showing your acceptance and funds. A growing number of graduate programs are in English. Explore the university sites and apply by the deadline.

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United Arab Emirates

To study in the UAE you apply to the university, which usually sponsors your student visa and residence; on admission the institution arranges the visa, and after arrival you complete medical checks and obtain your Emirates ID. Teaching is largely in English. Explore the university sites and apply by the deadline.

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Housing

Israel

Foreigners can generally buy property in Israel. Note that much land is owned by the state and held on long (typically 98-year) leases through the Israel Land Authority, though it is bought and sold much like ownership. Purchases are handled by a lawyer (not a notary) and registered at the Land Registry (Tabu); buyers pay a purchase tax (mas rechisha) that is higher for those who are not buying a single main home.

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United Arab Emirates

In the UAE, foreigners can buy property in designated freehold areas (widely available in Dubai and Abu Dhabi). Renting in Dubai must be registered through Ejari and follows RERA rules, with a security deposit around 5%. Purchases are registered with the land department (e.g. Dubai Land Department) and carry a transfer fee (about 4% in Dubai). There is no annual property tax.

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Healthcare

Israel

In Israel the dividing line is residency, not presence. Israeli residents are covered through National Insurance and health funds under the state health-insurance framework, with the National Insurance Institute collecting national and health-insurance contributions. Foreign workers who are not residents are not insured under the State Health Insurance Law and need private coverage, often arranged under foreign-worker rules. Visa category, residence status and employer obligations determine your practical route.

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United Arab Emirates

Health insurance is mandatory for all UAE residents, and the enforcement mechanism is the visa itself: valid cover is required to issue or renew a residence visa, so lapsed insurance becomes an immigration problem rather than only a medical one. Employers must provide cover for employees. Regulation differs by emirate — the Dubai Health Authority, the Department of Health – Abu Dhabi, and MOHAP for the northern emirates — and since January 2025 a federal decision extended the mandate to all seven emirates.

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Insurance

Israel

In Israel, insurance depends on residence status, employment type and product category. The nuance worth getting right is that foreign-resident employees have limited National Insurance branches compared with residents — a reduced set rather than exclusion. Employers of foreign residents may owe contributions for work injury, employee-rights protection and maternity insurance, and foreign workers usually need employer-arranged private medical cover. Check private policies against visa, lease, school or employer requirements.

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United Arab Emirates

The UAE runs two tracks. Expatriate employees do not pay into a national social-security scheme — instead they are entitled to an end-of-service gratuity, with a newer savings-scheme option available, so that gratuity is effectively your retirement provision rather than a pension. Emiratis are covered by the GPSSA pension scheme. Beyond mandatory health insurance, motor third-party liability insurance is compulsory for vehicles, and insurers are regulated by the Central Bank of the UAE.

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Frequently asked questions

How do VAT rates compare in Israel and United Arab Emirates?

Israel 18%%, United Arab Emirates 5%%.

Is Israel or United Arab Emirates wealthier per capita?

Israel — Israel $54,177, United Arab Emirates $50,274 (World Bank, 2024/2024).

Do Israel and United Arab Emirates offer a digital nomad visa?

Only United Arab Emirates does.

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