-
Policies on Foreign Direct Investment
Israel is open to foreign investment, with the government actively encouraging capital inflows. The “Invest in Israel” office under the Ministry of Economy serves as the national investment promotion agency, providing guidance on laws, taxation, incentives, and facilitating business contacts. It also organizes familiarization trips for potential investors and maintains advisory teams worldwide.
-
Free Trade Zones/Free Ports/Trade Facilitation
Israel has signed bilateral Qualified Industrial Zone (QIZ) agreements with Egypt and Jordan. The QIZ initiative allows Egypt and Jordan to export products to the United States duty-free, as long as these products contain inputs from Israel (8% in the Israel-Jordan QIZ agreement and 10.5% in the Israel-Egypt QIZ agreement). Products manufactured in QIZs must comply with strict rules of origin.
-
Capital Markets and Securities Investment
The Israeli government supports foreign securities investment. The Tel Aviv Stock Exchange (TASE) is Israel’s sole public securities exchange. Financial institutions extend credit under market conditions, and recent regulatory reforms have strengthened lending practices, reduced concentration risk, and improved market transparency.
-
Investment Incentives
Israel offers a wide range of incentives for investors in industry, tourism, and real estate. The Ministry of Economy prioritizes investments in high-tech companies and R&D activities. Most investment incentives available to Israeli citizens also apply to foreign investors. The Investment Encouragement Law outlines comprehensive incentive programs coordinated by the Investment Promotion Center.
Tax Info
Enter Dynamic Page- General CIT Rate
- 23
- CIT Return Due Date
- Within five months after the end of the tax year.
- CIT Payment Due Date
- If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
- CIT Estimated Payment Due Date
- Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 25/25/25
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 25/0-25/25
- General VAT Rate
- 18
- General Capital Gain Tax Rate
- Capital gains are constrained by the normal corporate income tax rate.
- Composite Effective Average Tax Rate
- 21.47%
- Composite Effective Marginal Tax Rate
- 16.63%
Administrative Regions
- D - Southern District
- HA - Haifa District
- JM - Jerusalem District
- M - Central District
- TA - Tel Aviv District
- Z - Northern District
Belonging Jurisdiction
-
IL - Israel
State of IsraelLearn MoreState of Israel -
WORLD - Global
EarthLearn MoreEarth
A Full-Service Consulting Firm Backs You Up
TKEG Expat is your trusted overseas business partner. We are the retail consulting department of THE KEITH &EVEN GROUP, a Hong Kong-based global consulting agency with access to 50 markets, covering approximately 72 percent of global GDP.
With its strategic advantages, we can connect customers to opportunities worldwide and serve them in 21 industries.
Do You Represent A Big Corporation Or Already Have 10 Million USD In Revenue?
If you represent a big corporation, or if your company already has more than $10 million USD in revenue, you may be interested in the enterprise solutions provided by THE KEITH &EVEN GROUP.
Enterprise Solutions >