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Some Benefits of Investing in Israel's Many Sectors

Hitting the lead in numerous tables ranking Israel's innovation, entrepreneurship, private sector spending and scientific research (among others!) at an all time high, it's no secret that Israel is on the radar of some of the world's most influential investors.

Encouraging foreign investment is key to growth, which is why a whole host of benefits are available to investors in real estate, tourism and industries with a strong emphasis on R&D activities and high-tech companies.

While the investment incentives are clearly detailed in the Law for the Encouragement of Capital Investment (and coordinated by the Israel Investment Centre) here is a GPI outline on some of those benefits:

R&D incentives and benefits

The Ministry of Industry, Trade and Labor implements the government's policy of encouraging and promoting industrial research and development in Israel. These programs have contributed to making Israel's position as the leading hub of high-tech entrepreneurship.

The incentives and benefits awarded for investment in Israeli R&D projects come in many guises, offering conditional grants of up to 50% of the approved R&D expenditure.

Employment Grants

The governments' Encouragement of Capital Investments Program established an additional program putting the focus on employment. Despite the fact that employment is at an all time low in Israel, the push to further increase employment in Israel's peripheral margins and those areas with a higher rate of unemployment is supported by grants.

Additional grants are offered by The Ministry of Immigrants Absorption Centre, extending grants to businesses employing new settlers as well as returning Israelis.

Film benefits law

We have discussed Israel's efforts to attract foreign investment at length but we have yet spoken of the benefits attributed to the arts industry. The film benefits law attracts investors from a different community altogether - the community of creative's. Encouraging the production of foreign films in Israel is backed by generous tax benefits that reduce the cost of production by up to 20%.

Start-up incubators

Designed to help new startups thrive, start-up incubators help entrepreneurs grow their business by offering everything from office space and hardware, to seed funding and guidance. Israel's technology incubators have been instrumental in make Israel's high-tech field world-renowned.

Still relatively new, both public and private incubators are key partners for entrepreneurs working hard to turn their ideas into reality.

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