Business in Israel

The Ministry of Immigrant Absorption places a range of programs and services at your service to assist you in setting up a business in Israel, or in transferring your business to Israel, while you are still abroad.

This assistance will continue following your return to Israel, throughout the process of setting up and operating your business.

To help you realize your business venture, the Ministry's Business Entrepreneurship Department strives to create an environment that is conducive for returning residents with entrepreneurial talents to establish, or to invest in, a business of their own. The Department provides business counseling services, including training and guidance for entrepreneurs, business feasibility checks, preparation of business plans, business mentoring and guidance, tax counseling, and financial assistance for business investments. The Department also develops and operates a guidance program (courses and workshops) and promotes sector-specific projects. In addition, loans are granted for opening businesses. Below are details of the services provided, and the conditions of eligibility for them.

Principles of assistance

• Assistance in analyzing and identifying the returning resident's relative business advantages.
• Advancement of a personal career by turning to an independent occupation.
• Assistance in establishing new businesses of returning resident entrepreneurs.
• Assistance in reinforcing and promoting existing businesses.

Receiving assistance and services

The Ministry of Immigrant Absorption offers assistance and guidance to returning-resident entrepreneurs through a network of 12 Business Counseling Centers for Returning Residents managed by professionals and business counselors proficient in a variety of languages including English.

The services provided include:

• Personal business counseling for the establishment and management of a business.
  • Information about the possibilities for opening a business, feasibility check and evaluation of the business concept.
  • Preparation of a business plan.
  • Mentoring and guidance during the business setup and operation process.
• Loans at special terms from the Fund for the Self-Employed Immigrant will be granted to returning residents who resided abroad for more than five years:
  • To view the terms of the loans, click on this link.
• Courses and workshops aimed at enhancing the required skills for opening and managing a business:
  • Courses and workshops for entrepreneurs and for owners of existing businesses.
  • Business clubs for business owners.
  • Conferences designed to introduce immigrants to the entrepreneurial concept and to the possibilities for assistance.
• Special projects aimed at developing a specific sector, nurturing a specific population or promoting a specific subject:
  • Centers specializing in assistance to particular populations.
  • The Business IL Center specializing in counseling for investors and business owners who are potential returning residents, while they are still abroad.

To receive information and counseling services overseas and in Israel, you must complete the Registration Form.

Loans to returning resident entrepreneurs

The Business Development Fund for Immigrants of the Ministry of Immigrant Absorption and the State-Guaranteed Small Business Assistance Fund of the Ministry of Industry, Trade, and Labor offer returning residents two channels for receiving loans for establishing a business. This special program allows you to choose the loan that is most convenient and suitable for you.

Below is a table comparing the two channels of loans offered by the State of Israel through government funds:

If you wish to receive business counseling while still abroad or on your return to Israel, Complete the Registration Form (Hebrew) now, according to the instructions provided.

Tax Concessions Returning residents continuing to hold businesses, properties, or earnings abroad, who return to Israel following ten years of residence outside of  Israel, will be exempt from taxes on income derived from their overseas activities. These concessions are part of a revolutionary tax reform initiated by the Ministry of Immigrant Absorption, which went into effect in 2008.

The reform grants those returning to Israel after at least ten years of residence abroad an exemption from income tax and from reporting property and income derived outside Israel during a period of ten years.  The purpose of this benefit is to eliminate significant tax barriers and help returning Israelis to maintain business activity in Israel, without affecting their overseas operations.

In addition, the Ministry provides an "adjustment year" benefit that allows you to choose not to be considered an Israeli resident for purposes of income tax during your first year of return.

For detailed information on the tax concessions see the Tax Reform website.