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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]
  • The Law for the Encouragement of Capital Investments offers investment grants of up to 24% of the approved investment project on a location basis.
  • Israel offers significant incentives for industrial R&D projects via the Office of the Chief Scientist's (OCS) R&D Fund. Projects are eligible for 40% funding of the approved project cost. Bio-Tech and Nano-tech companies are eligible for 50%. Companies located in Priority A regions are entitled for another 10%.
  • A wide range of additional programs, such as bi-national R&D funds, Generic R&D, academic/Industry partnership and Technological Incubators exists as well.
  • Employment grant course - Support will be granted for the establishment or expansion of industrial plants. The maximum support per worker will be 135,000 NIS (~ $34,000) over a period of 30 months or 4,500 NIS (~ $1,100) per month.
  • If company is located in Priority A region, the ministry assists by funding an average of 25% of the total employment costs for R&D employees for a period of 4 years.
Tax exemptionsMore [+]Less [-]
  • Tax exemption for 2 years and then company tax rate of 10% for 8 years.
  • Company tax exemption for 10 years.
  • Company Tax rate of 11.5% and dividend tax rate of 4% - for 10 years.
  • In addition, a foreign investor investing in an Israel VC fund, is eligible to a full tax exemption on the investment.

(Conditions Apply)
Property assistance / other fiscal incentiveMore [+]Less [-]
  • Companies locating in “Priority Areas” are directed to the appropriate authority in our ministry, for land and infrastructure allotment, which are provided by the Ministry.
Training and labor market assistanceMore [+]Less [-]
  • On the job training in the industry.
  • Support programs on construction.
  • A class in Factory program.
  • On the job training for distressed factories.

Funding Possibilities:

  • The employer which will absorb a worker, will receive a monthly grant of 1000 NIS (~250 USD$), for every new worker while the training period lasts. Employer is eligible for additional 3000 NIS (~750 USD$) monthly grant, if the training is being held by a professional trainer, during the training period (up to six months).
Loan guarantees, cheap loans or finance
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. ICT
  2. Life Sciences (Bio-tech, Pharma, Medical Devices)
  3. Cleantech (Renewable energy and Water technology)
Sectors specific incentivesMore [+]Less [-]
  • ICT – most of the incentives for this sector will be concentrated under the general incentives package, R&D support programs, and employments grants courses.
  • Life Sciences- Biotechnology and Nanotechnology are eligible for an extra 10% of funding for R&D projects. A government sponsored Venture Capital Fund of $400 million dedicated to supporting the Life Sciences to be launched in mid-2010.
  • Cleantech – A special 5 years governmental program, Israel NEWTech, is dedicated to promote investments in the fields of renewable energy and water technologies. A total budget of 300 millions NIS is aimed towards R&D investments (special R&D center in the Negev), TNUFA and MAGNET plans assist new technology initiatives (OCS), and research grants for project with potential for commercial applications.

Sponsorship

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