Investment Incentives.

(From Israel Business Arena)

On this page: Government Incentives - Overview Approved Enterprises Other Government Incentives Research and Development Incubators Free Trade Agreements International R&D Funds Free Trade and Free Processing Zones Further Information

1. Government Incentives - Overview

The Israeli government provides various incentives to encourage economic development, and overseas investors may benefit from these. Indeed, incentives are enhanced for projects in which there is foreign involvement. There are generally no restrictions on the extent of foreign ownership in an enterprise, except in the security sector.

Incentives take the form of cash grants, loan guarantees, and tax benefits. Research and development attracts special assistance. There is also an technology incubator scheme which nurtures new ideas, providing practical as well as financial aid to entrepreneurs.

2. Approved Enterprises

The main incentives are set out in the Law for the Encouragement of Capital Investments, 1959. Assistance provided under this law is administered by the Investment Center, which is part of the Ministry of Industry and Trade.

The Investment Center Ministry of Industry and Trade 30, Agron St. Jerusalem. Tel: 972-2-6220373/4/5 Fax: 972-2-6250442

Most assistance relates to projects awarded "approved enterprise" status by the Ministry of Industry and Trade. In general, projects that will help to develop the economy, generate employment, or improve the balance of payments, qualify for such status. An additional criterion is that projects must have paid-up capital amounting to 30% of the total investment required.

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