We are a business-oriented accounting firm that provides a comprehensive, complementary portfolio of services.
Driven by our commitment to our clients, and with a passion for innovation, we provide a valuable business perspective to ensure financial objectives are achieved - and even exceeded. Considering the complex variables of today’s business arena, and always taking our client’s side, we view ourselves as professional confidants whose job it is to accompany them safely as they meet their goals.
Discover how Israel combines its unique blend of diverse cultures, democracy, and technological prowess to power its innovation-driven economy.
Established in 1948, Israel stands as the world's only Jewish state and a flourishing democracy amidst a diverse cultural mosaic. From Jerusalem, the nation's capital, to the vibrant financial center of Tel Aviv on the Mediterranean coast, Israel's open-market economy thrives. Recognized as a developed market, it leads in high-tech innovation and life sciences, boasting a skilled workforce and ample venture capital. Recent natural gas discoveries promise long-term energy sustainability, fueling Israel's future growth. With a population of 9.7 million and a robust GDP of US$ 539 billion, presenting a GDP per capita of $55K, Israel offers compelling opportunities for global investors.
Explore Israel's dynamic economy, driven by high-tech innovation and industrial prowess.
Israel stands as a dynamic economic powerhouse with a developed free-market system driven by high-tech innovations and industrial manufacturing. Boasting over 9,000 active startups and attracting global tech leaders like Microsoft, Apple, Nvidia and Google, the country's high-tech industry employs over 400 thousand. Despite a recent decrease in high-tech investments due to global economic shifts, Israel remains a hotbed for pioneering technologies. The labor market, rooted in socialist beginnings, prioritizes worker rights, offering comprehensive benefits and protection. With a highly educated workforce, an expanding population, and a supportive business environment, Israel's commitment to education and innovation marks it as an enticing hub for investment opportunities. Israel’s Compound Annual Growth Rate (CAGR) between 2019 and 2024 was 3.2%.
Discover how to navigate the legal and financial considerations of establishing a business presence in Israel.
Establishing a legal presence in Israel includes a multifaceted process that needs to consider diverse business structures and objectives, including the consideration of setting up a permanent establishment. Within the Israeli legal framework, entities have the flexibility to incorporate as partnerships, non-profit organizations, or companies, each pathway carrying distinct implications for taxation, incentives, and reporting requirements. Understanding the nuances of incorporation options, compliance obligations, and investment incentives is paramount for entities aiming to establish a foothold in the Israeli market.
Take a closer look at Israel’s use of diverse tax incentives to encourage economic growth and job creation.
Israel's tax landscape offers diverse incentives, including reduced corporate rates for 'preferred companies' and grants for approved investments. Israel's dynamic tax environment fosters innovation and R&D, with concessions and grants available for research initiatives, incentivizing technological advancements. The country's currency regulations promote the free movement of foreign currency, overseen by the Bank of Israel to maintain stability and growth.
Corporate tax remains at 23%, with reductions to 16% for 'preferred companies' and 7.5% for those in specific development zones. 'Preferred technology companies' enjoy lower rates on intellectual property profits, while a 'special preferred establishment' status offers reduced rates of 5% or 8%. VAT stands at 18%, and progressive purchase taxes apply to property acquisitions. Individuals face progressive income tax rates from 10% to 47%, and new residents might enjoy a 10-year tax exemption on non-Israeli sourced income.
Examine how Israel's land policies and tax structures significantly impact real estate transactions, and potential reforms to alleviate housing price inflation.
Israel's land and tax systems combine to create a unique landscape for investment. The country's land, predominantly managed by the Land Authority, involves lengthy leases on state-owned properties. This has led to minor hurdles towards development and contributed to soaring housing prices, but recent reforms by the Israeli government aim to overhaul these policies. Taxation on property transactions encompasses purchase tax, capital gains tax, and potential VAT for dealers. Residents and foreign residents selling a single home for residency benefit from tax exemptions. Non-restrictive laws allow foreign ownership of privately held land, though the Israel Land Authority requires approval for non-residents intending to own its controlled land.
Explore Israel's evolving banking landscape, marked by digital bank entries and regulatory shifts to foster competition.
Israel's banking sector, anchored by major players like Bank Leumi and Bank Hapoalim, has seen pivotal changes with the licensing of two new digital banks in 2022, One Zero Digital Bank, which became the first new Israeli bank in 43 years, followed by, “Esh Bank Israel,” which has recently (January 2024) started final deployment. Despite a centralized structure posing challenges, regulatory efforts from the Banking Supervision Department aim to infuse competition, granting licenses for credit card clearing companies and promoting the Central Credit Register's use. The robust regulation of Israel's banking system, overseen by the Bank of Israel, makes sure the banks in Israel abstained from extending unsecured credit and suitable reserves would be included in the various aspects of their activity. The country's credit ratings, as of December 31, 2024, are as follows: S&P: AA- / Fitch: A+ / Moody's: A1.
Uncover the secrets behind Israel’s capital market and innovative R&D sector, including how it attracts billions in international investments.
Israel's vibrant capital market, led by the Tel Aviv Stock Exchange (TASE), draws significant global investments in tech and biomedical fields. Renowned for innovative research and development, Israeli companies often seek funding through US exchanges, solidifying their global presence. Stringent regulatory oversight, notably by the Israeli Securities Authority (ISA), ensures market integrity.
In the TASE equity market, daily trading volumes peaked in late 2024 to an average of about $750 million a day. The TASE also hosts index funds with total market cap of about $44 billion.
Public companies adhere to rigorous financial reporting standards, demanding substantial investments for compliance, highlighting the comprehensive nature of Israel's capital market. Additionally, diverse local and foreign investment funds offer non-bank financing options for ventures and corporations seeking high-risk investments.
Take a deep dive into Israel's comprehensive labor laws and regulations securing employees' rights.
Israel's labor laws, shaped by its socialist history, safeguard employee rights by stipulating working conditions, fair remuneration, and healthcare privileges. These laws govern various aspects, including work hours, paid leave for illness or maternity, and mandatory pension contributions. Employers must adhere to written contracts specifying employee benefits, with the minimum wage set at NIS 6,247 monthly, and average wage set at NIS 13,316 monthly. Foreign workers also enjoy similar protections under Israeli labor laws. The legislation emphasizes equitable treatment of employees and employer responsibilities, reflecting Israel's commitment to social welfare.
Take a closer look at how Israel’s legal framework ensures secure and honored contracts, fostering a stable business environment.
Israel's legal framework ensures contract enforcement and business conflict resolution efficiency. The judiciary, comprising the Supreme Court, District Courts, and Magistrates’ Courts, guarantees judicial independence and specialized instances in taxation and economics, facilitating the efficient handling of cases. While court accessibility is high, efforts are ongoing to address prolonged proceedings. Arbitration holds significant weight, swiftly resolving business conflicts with the support of the Israeli Arbitration Law. Courts commonly advocate for mediation and arbitration, expediting conflict resolution in business. Overall, Israel's legal mechanisms prioritize contractual enforcement and streamlined dispute resolution, fostering stable business environments.
