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General information: Israeli market and US – Israeli economic relations <\/strong><\/h4>\nAccording to the US Department of State\u2019s Investment Climate Statements<\/a>, Israel, known as the \u201cStart-Up Nation\u201d thanks to its entrepreneurial spirit, invests strongly in scientific research and education. This strategy enables the country to get the highest quality workforce and to become a leader in innovation in various sectors.<\/p>\nAmerican firms represent almost two-thirds of the more than 300 Research and Development centers established by multinational companies in Israel. The country has the third most companies listed in the NASDAQ, following the United States and China. Several Israeli government agencies, all led by the Israel Innovation Authority, fund incubators for early stage technology start-ups<\/a>. Israel provides large support for technologies and new ideas while developing traditional industries as well.<\/p>\nMoreover, in recent years, private venture capital funds have flourished in Israel. The resilient tech sector, low debt and strong growth preceding the Covid-19 pandemic crisis enabled Israel’s economy to weather the worldwide recession.<\/p>\n
Furthermore, Israeli laws encourage industrial R&D and capital investment, seeking to provide supportive conditions for companies that aim to invest in Israel. These laws provide for benefits and incentives such as reduced tax rates, grants, tax exemptions and other tax-related benefits.<\/p>\n
The US-Israel bilateral commercial and economic relationship is strong materialized by favorable trade of goods and extensive commercial links, especially in R&D and high-tech. According to the US Department of Commerce, in 2019, the total stock of Israeli foreign direct investment (FDI) USD in the United States was up to $36.6 billion USD.<\/p>\n
The Israeli Government continuously takes new actions to remove some trade barriers and encourage capital investment, including foreign investment<\/a>.<\/p>\nHOW TO INVEST IN ISRAEL? What are the different possibilities?<\/strong><\/h4>\nThere are several ways to invest in Israel<\/a>, presented as follows:<\/p>\n– Investing in Israeli Government Bonds<\/strong><\/h4>\nIsraeli Government Bonds are considered very safe, as Israel has never defaulted on its bonds since its creation and its bonds have strong credit ratings (AA- for Standard & Poor\u2019s). The yield for the Israeli 10Y Government Bonds is around 2.50% as of July 2022.<\/p>\n
– Investing in Israel\u2019s capital market<\/a> via Israeli bonds, stocks and mutual funds.<\/strong><\/p>\nThis can be done by opening an investment account, physically or remotely, with one of the Israeli brokerage firms that are part of the Tel Aviv Stock Exchange (TASE). Investment in such accounts can be made as individuals (single or joint), as an organization (for-profit or non-profit) and through U.S. retirement funds with a minimum entry limit of 20,000 NIS.<\/p>\n
Moreover, there are other ways to invest through the Public Equity Market. On the one hand, for a US based investor, it is possible to put capital into American Depository Receipts (ADRs) in order to invest in the stock of public Israel companies. There are more than 100 companies whose ADRs are easily investable. On the other hand, the best way to invest in a diversified portfolio of Israel stocks is via an Israel-focused Exchange-Trade Fund (ETF). This method offers diversification at low cost and trades like a stock in US exchange. The iShares MSCI Israel Capped ETF, traded on the New York Stock Exchange, is one of the most popular options for investors looking for exposure in Israel. Beside this original option, a newer and progressively popular way to invest in Israel is the BlueStar Israel Technology ETF and is traded on the New York Stock Exchange as well. Finally, investing in the Jerusalem Portfolio represents one of the best methods to invest in Israel Public Equities. It is a combination of Israel ETFs which provides maximum exposure to all sectors in the Israel economy.<\/p>\n
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– Investing in Israel Start-Up companies<\/strong><\/p>\nThis can be done by purchasing equity in early stage start-ups either as an angel investor or through a venture capital firm. However, these ways imply relatively large investment principles, ranging between $150,000 to $2,000,000 USD. It should be noted that venture capital implies huge risks and little liquidity.<\/p>\n
– Investing in Israeli Real Estate<\/strong><\/h4>\nThere are two ways to proceed with such investments<\/a>. The first one is by directly purchasing physical real estate such as a house, apartment, office, building etc. The second way is to purchase stocks and\/or bonds of real estate companies or Real Estate Investments Trusts REITs) on the TASE. In this method you get cash flow and dividends, up to 90% of the profits of the REITs, from the companies that built, sell and rent out the real estate, without owning any property.<\/p>\nInvestment visa to Israel for American citizens<\/strong><\/p>\nThe B-5 visa<\/a> \u2013 the first Israeli investment visa for citizens of the USA \u2013 was implemented in May 2019. In addition to its role in encouraging investment in the Israeli economy, this visa was considered to be \u201cmutual\u201d. Thanks to the E-2 investment visa, Israeli citizens finally receive the opportunity to do business in the US and acquire legal status there. In exchange, Israel was required to allow American investors to obtain legal status in Israel.<\/p>\nThe B-5 investor visa is issued to investors who want to reside in Israel together with their families in order to develop the business initiative only and will leave when the visa expires.<\/p>\n
Since the implementation of the B-5 visa, US citizens can now receive legal status in Israel even if they are not otherwise eligible to immigrate in Israel through the Aliyah process<\/a> according to the Right of Return and do not have any family \/ marital ties with someone Jewish \/ Israeli.<\/p>\nHow will investing in an Israeli business make it possible to receive a B-5 visa?<\/strong><\/h4>\n
American firms represent almost two-thirds of the more than 300 Research and Development centers established by multinational companies in Israel. The country has the third most companies listed in the NASDAQ, following the United States and China. Several Israeli government agencies, all led by the Israel Innovation Authority, fund incubators for early stage technology start-ups<\/a>. Israel provides large support for technologies and new ideas while developing traditional industries as well.<\/p>\n Moreover, in recent years, private venture capital funds have flourished in Israel. The resilient tech sector, low debt and strong growth preceding the Covid-19 pandemic crisis enabled Israel’s economy to weather the worldwide recession.<\/p>\n Furthermore, Israeli laws encourage industrial R&D and capital investment, seeking to provide supportive conditions for companies that aim to invest in Israel. These laws provide for benefits and incentives such as reduced tax rates, grants, tax exemptions and other tax-related benefits.<\/p>\n The US-Israel bilateral commercial and economic relationship is strong materialized by favorable trade of goods and extensive commercial links, especially in R&D and high-tech. According to the US Department of Commerce, in 2019, the total stock of Israeli foreign direct investment (FDI) USD in the United States was up to $36.6 billion USD.<\/p>\n The Israeli Government continuously takes new actions to remove some trade barriers and encourage capital investment, including foreign investment<\/a>.<\/p>\n There are several ways to invest in Israel<\/a>, presented as follows:<\/p>\n Israeli Government Bonds are considered very safe, as Israel has never defaulted on its bonds since its creation and its bonds have strong credit ratings (AA- for Standard & Poor\u2019s). The yield for the Israeli 10Y Government Bonds is around 2.50% as of July 2022.<\/p>\n – Investing in Israel\u2019s capital market<\/a> via Israeli bonds, stocks and mutual funds.<\/strong><\/p>\n This can be done by opening an investment account, physically or remotely, with one of the Israeli brokerage firms that are part of the Tel Aviv Stock Exchange (TASE). Investment in such accounts can be made as individuals (single or joint), as an organization (for-profit or non-profit) and through U.S. retirement funds with a minimum entry limit of 20,000 NIS.<\/p>\n Moreover, there are other ways to invest through the Public Equity Market. On the one hand, for a US based investor, it is possible to put capital into American Depository Receipts (ADRs) in order to invest in the stock of public Israel companies. There are more than 100 companies whose ADRs are easily investable. On the other hand, the best way to invest in a diversified portfolio of Israel stocks is via an Israel-focused Exchange-Trade Fund (ETF). This method offers diversification at low cost and trades like a stock in US exchange. The iShares MSCI Israel Capped ETF, traded on the New York Stock Exchange, is one of the most popular options for investors looking for exposure in Israel. Beside this original option, a newer and progressively popular way to invest in Israel is the BlueStar Israel Technology ETF and is traded on the New York Stock Exchange as well. Finally, investing in the Jerusalem Portfolio represents one of the best methods to invest in Israel Public Equities. It is a combination of Israel ETFs which provides maximum exposure to all sectors in the Israel economy.<\/p>\n – Investing in Israel Start-Up companies<\/strong><\/p>\n This can be done by purchasing equity in early stage start-ups either as an angel investor or through a venture capital firm. However, these ways imply relatively large investment principles, ranging between $150,000 to $2,000,000 USD. It should be noted that venture capital implies huge risks and little liquidity.<\/p>\n There are two ways to proceed with such investments<\/a>. The first one is by directly purchasing physical real estate such as a house, apartment, office, building etc. The second way is to purchase stocks and\/or bonds of real estate companies or Real Estate Investments Trusts REITs) on the TASE. In this method you get cash flow and dividends, up to 90% of the profits of the REITs, from the companies that built, sell and rent out the real estate, without owning any property.<\/p>\n Investment visa to Israel for American citizens<\/strong><\/p>\n The B-5 visa<\/a> \u2013 the first Israeli investment visa for citizens of the USA \u2013 was implemented in May 2019. In addition to its role in encouraging investment in the Israeli economy, this visa was considered to be \u201cmutual\u201d. Thanks to the E-2 investment visa, Israeli citizens finally receive the opportunity to do business in the US and acquire legal status there. In exchange, Israel was required to allow American investors to obtain legal status in Israel.<\/p>\n The B-5 investor visa is issued to investors who want to reside in Israel together with their families in order to develop the business initiative only and will leave when the visa expires.<\/p>\n Since the implementation of the B-5 visa, US citizens can now receive legal status in Israel even if they are not otherwise eligible to immigrate in Israel through the Aliyah process<\/a> according to the Right of Return and do not have any family \/ marital ties with someone Jewish \/ Israeli.<\/p>\nHOW TO INVEST IN ISRAEL? What are the different possibilities?<\/strong><\/h4>\n
– Investing in Israeli Government Bonds<\/strong><\/h4>\n
<\/p>\n– Investing in Israeli Real Estate<\/strong><\/h4>\n
How will investing in an Israeli business make it possible to receive a B-5 visa?<\/strong><\/h4>\n
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