Israel · Investment
Foreign investment rules, incentives, investment promotion agencies, and restricted sectors.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
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.
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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.
- 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
- 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).
Government portals
- Ministry of Foreign Affairs — Israel’s diplomatic missions abroad, consular services and visa information.
- National Insurance Institute (Bituach Leumi) — Social-security and health-insurance contributions and benefits, with sections for new immigrants and foreign workers.