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Financial Incentives

Jerusalem is the only centrally located city in Israel to enjoy national development zone A status. This status entitles technology-based companies and investors to benefit from the best grants and tax incentives available in Israel today.

Life sciences companies choosing to launch operations in Jerusalem are eligible for prime financial support incentives and are given special preference. In addition, companies with a presence in Jerusalem can also benefit from a series of municipal incentives offered by theJerusalem Development Authoritywhich provides support to companies doing business in Jerusalem.

Subject to the specific terms of the various programs, financial incentives include the following*:

Development zone A incentives for technology-based companies

  • Government grant of up to 24% of tangible fixed assets (i.e., the original cost of land development and investment in buildings, machinery and equipment)
  • Significant corporate tax reduction down to 6% by 2015
  • Tax rate on dividends is reduced to 10%
  • Employment grants of up to 20% of salaries for 4 years for companies employing at least 15 high-wage employees
  • R&D assistance grants of up to 60% of approved R&D programs offered by the Office of the Chief Scientist (OCS), Ministry of Industry, Trade and Labor

 

Jerusalemspecial assistance package incentives

  • Exceptional grants of up to 3.9 million NIS for life science companies: new in Jerusalem, moving to Jerusalem or Jerusalem-based, expanding their activities in the city. This grant is conditional upon the number of new employees (7-50).  Contact usfor additional information.
  • Unique grants of up to 576,000 NIS for young companies established in or moving to Jerusalem: 48,000 NIS per year for each biomed employee, up to 288,000 NIS per company per year for two years. Eligible candidates are companies employing from 2-6 employees and operating less than 6 years. Contact usfor additional information.
  • Special grants for start-ups within the framework of the technological incubators program of the OCS (up to NIS 350,000). Read more...
  • Relocation and expansion grants of up to 600,000 NIS for companies establishing new facilities or expanding existing facilities (by at least 100 sqm) Read more...
  • Employees relocation grant of 1,500 NIS/month for high-tech employees relocating to Jerusalem. Read more...

 

 

*The terms of the programs are subject to changes and comply with JDA’s regulations published in the site: www.jda.gov.il

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