Why Set Up Business in Israel?
When talked about doing business in Israel, you can always find business opportunities in every part of Israel and to match a variety of lifestyles. Whether you setup your own business or look for partnership in an existing company, the challenge in the business world of Israel is particularly different from the other countries.
Though Israel is a small country with limited resources, it stands out as one of the world’s most competitive economies. Israel has one of the most resilient and technologically advanced market economies in the world. Its large concentration of talented and innovative workforce has further cemented its position as an ideal investment destination. What’s more, Israel has been internationally recognised as a place of innovation and creativity, noted for its growing entrepreneurial spirit and technologies.
Strengths of the Israeli market are as follow:
- growing economy
- low inflation and unemployment rate
- strong technological knowledge and entrepreneurship
- high density of start-up companies
There are no specific laws concerning foreign investments or foreign investors in Israel. In Israel, various laws of incorporation, regulations and orders are applicable to both foreign investors and residents, but there may be a specific treatment of foreign investors in existing laws or regulations.
According to the tax laws in Israel, there are quite a number of tax exemptions and tax relief for foreign resident investors, such as exemption from capital gains tax in the following cases:
- From sale of a share that is traded on a stock exchange in Israel;
- From sale of holdings in an R&D company;
- Sale or realization of derivatives;
- Sale of a mutual fund to an overseas resident.
As of now, some global top players like Google, Microsoft and Motorola, have their Research and Development (R&D) centres in Israel. If you are considering a country to expand your business portfolio internationally, Israel will always be on the list.