Israel
A dynamic market driven by technology entrepreneurship and innovation. Israeli family offices are often founded by tech entrepreneurs and maintain strong ties to global venture capital and startup ecosystems.
Family Offices
200+
Avg AUM
$300M
Regulatory Body
ISA (Israel Securities Authority)
Tax Environment
New immigrant tax benefits; 25% CGT; R&D incentives
Introduction
Israel's family office landscape is distinctive, shaped by the country's exceptional technology and entrepreneurship ecosystem. Known globally as the "Startup Nation," Israel produces more startups per capita than any other country, and many of its family offices are first-generation, founded by tech entrepreneurs who have built and exited successful companies.
The Israeli family office market is younger and more entrepreneurial than most global counterparts. Principals tend to be actively involved in investment decisions, often maintaining close ties to the venture capital and startup communities. This hands-on approach extends to significant cross-border investment activity, particularly in the United States and Europe.
Israel offers attractive tax incentives for new immigrants (olim) and returning residents, including a 10-year exemption on foreign-sourced income reporting and taxation. Combined with strong R&D incentives, a deep talent pool in technology and cybersecurity, and a vibrant innovation ecosystem, Israel presents a unique proposition for tech-oriented wealthy families.
Key Numbers
Evaluation
Israel's tax system features a corporate tax rate of 23% and a capital gains tax rate of 25% (30% for substantial shareholders). While not the lowest globally, the system offers several significant incentives that can substantially reduce effective tax rates, particularly for technology-oriented businesses and investments.
The Innovation Authority's R&D grants and the "Angels Law" providing tax benefits for investments in qualifying startups create incentives aligned with Israel's technology-driven economy. The Preferred Enterprise and Special Preferred Enterprise regimes offer reduced tax rates (7.5-16%) for qualifying companies meeting investment and employment thresholds.
The 10-year tax holiday for new immigrants (olim) and returning residents is perhaps Israel's most distinctive tax feature. During this period, qualifying individuals are exempt from reporting and paying tax on foreign-sourced income, including capital gains, dividends, interest, and rental income from abroad. This makes Israel highly attractive for wealthy individuals considering relocation.
Resources Directory
Key Highlights
Startup Nation
More startups per capita than any other country, providing unique direct investment and co-investment opportunities.
Tech-first families
Many family offices are first-generation, founded by tech entrepreneurs with deep operational expertise.
Global connectivity
Israeli families often maintain significant business interests across the US, Europe, and Asia.
New immigrant benefits
Ten-year tax exemption on foreign-sourced income for new immigrants and returning residents.
