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 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
Government grant of up to 20% 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 9% in 2015
Tax rate on dividends is reduced to 20%
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
Jerusalem special incentives package
*The terms of the programs are subject to changes and comply with JDA’s regulations published in the site: www.jda.gov.il