How to Transfer Your Company to Israel

Relocating a company to Israel is an increasingly attractive option for entrepreneurs, startups, and established businesses seeking access to one of the world’s most dynamic innovation ecosystems. Known as the “Startup Nation,” Israel combines a vibrant tech landscape, a highly educated workforce, competitive tax incentives, and a strong culture of entrepreneurship. For companies aiming to expand globally, move operations closer to R&D talent, or benefit from proximity to the Middle East and European markets, transferring a business to Israel can offer long-term strategic advantages. However, the relocation process is complex and requires careful legal, tax, and operational planning. From understanding local regulations to securing work visas and choosing office space, every step must be executed correctly to ensure a smooth transition. This article outlines the key considerations for relocating your company to Israel — and explains how WRAI, a leading advisory firm specializing in corporate and personal relocation, can guide you through every stage of the process.

Reasons to Relocate

There are many strategic, operational, and financial reasons why companies consider moving their headquarters or setting up a subsidiary in Israel. Some of the most common include:

These advantages explain why global corporations — from Intel and Google to smaller tech ventures — have chosen Israel as a hub for research, operations, and strategic growth.

Legal Setup

One of the first steps in relocating a company to Israel is choosing the appropriate legal structure. The most common business forms include:

• Private Limited Company (Ltd): The most widely used structure for both local and foreign-owned businesses. It offers limited liability for shareholders and flexible governance.
• Branch Office: Suitable for companies that want to operate under the same legal identity as their foreign parent company. This option requires fewer formalities but limits autonomy.
• Representative Office: Primarily for market research or liaison purposes. It cannot conduct commercial activities or generate revenue.

Registering a company in Israel involves submitting incorporation documents, appointing directors, registering with the Israeli Registrar of Companies, and complying with corporate governance and reporting obligations. If relocating an existing entity, restructuring or establishing a subsidiary may be necessary to comply with Israeli law.

Visa Options

If you plan to move senior executives, key employees, or founders to Israel, you’ll need to secure the appropriate visa. Israel offers several immigration options tailored to foreign entrepreneurs and investors. Main Business-Related Visa Types:

Foreign companies must also comply with local employment regulations, including registering employees with the National Insurance Institute (Bituach Leumi) and adhering to Israeli labor laws.

Tax Rules

Israel’s tax environment is one of the key attractions for foreign companies. Corporate income tax is currently set at 23%, with various incentives reducing the effective rate for companies engaged in R&D or operating in priority development zones. Additional tax considerations include:

• Withholding tax: Payments to foreign shareholders or service providers may be subject to withholding tax, often reduced under tax treaties.
• Value Added Tax (VAT): The standard VAT rate is 17%, and foreign companies must register for VAT if providing goods or services locally.
• Double taxation treaties: Israel has signed treaties with over 50 countries, helping businesses avoid double taxation on cross-border income.

Understanding the nuances of Israeli tax law is critical for optimizing your company’s global tax position. WRAI works with leading tax advisors to structure corporate operations efficiently and ensure compliance with all local tax obligations.

Funding Sources

Israel is one of the most active countries in the world for venture capital, angel investment, and government-backed funding. Key funding sources include:

• Government grants: Programs like the Israel Innovation Authority (IIA) offer R&D funding and tax benefits to foreign companies establishing operations.
• Venture capital: Israel’s vibrant VC ecosystem includes hundreds of funds specializing in early-stage, growth, and sector-specific investments.
• Corporate partnerships: Global tech giants often invest directly in Israeli startups or form strategic partnerships to co-develop new technologies.

Accessing funding requires a strong business plan and understanding of the local investor landscape. WRAI supports clients by connecting them to funding opportunities and strategic partners in Israel’s innovation ecosystem.

Office Space

Choosing the right location is another key consideration. Israel’s business landscape is concentrated in several major hubs, each offering unique advantages.

Office rental prices vary widely depending on the city and district. As of 2025, prime office space in Tel Aviv averages $35–50 per m²/month, while secondary cities like Haifa may offer prices around $15–25 per m²/month.

Key Challenges

While relocating a company to Israel offers many advantages, businesses must prepare for certain challenges:

• Bureaucracy: Although improving, administrative processes can be complex and time-consuming.
• Cultural differences: Business culture in Israel is direct and fast-paced, requiring adaptability.
• High costs: Talent and office space can be expensive in major cities.
• Language barriers: While English is widely spoken in business, some legal and tax documentation is only available in Hebrew.

Relocating a company to Israel is not just a strategic business decision — it’s an investment in innovation, talent, and long-term global growth. With its world-class tech ecosystem, strong legal and financial infrastructure, and supportive government policies, Israel offers unparalleled opportunities for businesses ready to expand their horizons. However, success depends on meticulous planning and expert guidance. From legal setup and tax optimization to visa processing and funding access, WRAI provides end-to-end relocation services tailored to your company’s needs. With our premium support and on-the-ground network, you can focus on scaling your business while we handle the complexities of moving it to Israel.