🇮🇱 Israel · Investment
Foreign investment rules, incentives, investment promotion agencies, and restricted sectors.
Quick answer
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.
Inward investment is promoted by Invest in Israel (Ministry of Economy and Industry); the country is known for its technology and R&D ecosystem.
- Invest in Israel provides support to foreign investors.
- The Israel Innovation Authority offers R&D grants and programmes.
- Strong sectors include software, cybersecurity, fintech and life sciences.
Step-by-step
- 1
Check the investment regime
Israel welcomes FDI with national treatment and no exchange controls; Invest in Israel supports investors.
- 2
Choose your vehicle and register
Incorporate a company with the Registrar of Companies and register with the Tax Authority for company and VAT files.
- 3
Access preferred-enterprise tax benefits
Qualifying activities can get reduced corporate tax as a preferred (or special preferred) enterprise under the Encouragement of Capital Investments Law.
- 4
Access innovation grants
The Israel Innovation Authority offers R&D grants and programs for technology and startup investment.
- 5
Handle capital and repatriation
There are no exchange controls, so capital, dividends and profits can be repatriated freely.
- 6
Meet reporting and protections
Keep corporate/tax filings and any grant conditions; Israel’s legal system and treaties protect investors.
Checklist
- National treatment (no exchange controls) + Invest in Israel
- Registrar of Companies + Tax Authority (VAT)
- Preferred-enterprise reduced tax
- Israel Innovation Authority R&D grants
- No exchange controls (free repatriation)
- Corporate/tax filings + grant conditions
- Investment-treaty protection
- CTA to .com/.ai for AI-assisted planning
Official authorities
- Invest in Israel
National investment-promotion agency.
Frequently asked questions
What is a preferred enterprise?
A status under the Encouragement of Capital Investments Law giving reduced corporate tax to qualifying (often export- or tech-oriented) companies.
What does the Innovation Authority do?
It provides R&D grants, incubator and startup programs, supporting Israel’s reputation as a technology and innovation investment hub.
Can I repatriate profits from Israel?
Yes — Israel has no exchange controls, so capital, dividends and profits can be sent abroad freely (withholding tax may apply to dividends).
Official-information aggregation, not legal advice. Always verify on the authority's own site.