A half an hour drive from Ben Gurion International Airport and a 45 minute drive from Tel Aviv, the financial hub of Israel, 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 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 the Jerusalem Development Authority which 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
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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)
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10-year complete tax exemption from all corporate tax on undistributed income
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For “strategic investments” by large multi-national companies, complete corporate and dividend tax exemption, even if income is distributed
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Employment grant offering a maximum support per employee of NIS 120,000 or NIS 2,000 per month
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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
Jerusalem special assistance package incentives
- Exceptional grant of up to 2.4 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 (at least 50) and built area (at least 2,500 sqm). Read more...
- Unique grants for young biomed companies established in or moving to Jerusalem: 30,000 NIS per year for each biomed employee, up to 300,000 NIS per company per year for two years, gaining up to 600,000 NIS. Eligible candidates are companies employing from 3-20 employees and operating less than 6 years. Read more...
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Special grants for start-ups within the framework of the technological incubators program of the OCS (up to NIS 350,000). Read more...
- 4-year property tax waiver for new companies established in Jerusalem (90 NIS/sqm - first year, 65 NIS/sqm - second year, etc.). Read more...
- Rental subsidies of 1,500 NIS/month for BioMed industry employees relocating to Jerusalem. Read more...
- 50% subsidy of land-development costs. 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 |
