Doing Business in Israel – 2026

It’s perfectly possible to make money in Israel and keep most of it. According to the OECD, Israeli tax revenues amounted to 30.9% of GDP in 2024, which was better than the OECD average of 34.1%. And Israeli business law follows Western principles thanks to British rule in 1917-1948, the high tech revolution, Mediterranean gas and OECD membership since 2010. 

Below we review some of the things to address when doing business in Israel.

At the Macro Level:

You are probably doing taxable business in Israel if you conduct business activities physically in Israel or operate in Israel via an agent who can commit you. Israel’s tax treaties and the OECD Multilateral Instrument refine these criteria for foreign companies – check out any applicable treaty. Don’t forget to check out VAT too – Israeli rules differ from other countries’ rules.

Decide if you want to operate as a company or as a self-employed individual (=independent contractor).  Companies offer limited liability protection. But almost every company needs an annual audit which has a cost.  

Business Tax Rates:

For 2026, the regular company tax rate is 23%. The regular dividend tax rate is 30%-35% for 10%-or-more shareholders, 25%-30% for other shareholders, resulting in a combined tax burden on distributed corporate profits of 42.25%-49.95%, subject to any tax treaty (see below) in the case of foreign investors.

Notwithstanding the above, the income of “wallet companies” and “labor intensive activities” of many closely held private companies (5 or fewer shareholders) may be taxed as salary or trading income shareholders at rates of up to 50%. In addition, retained profits derived in prior years may be subject to a 2% surtax unless dividends are paid at prescribed levels or the company is liquidated. The rules are complex. Exceptions apply to many Israeli technology and industrial companies. Foreign investors and Israeli resident investors in foreign companies should check their situation in each country concerned having regard to any applicable double tax treaty.

Preferred income derived by preferred industrial and technology enterprises is liable to company tax of 7.5% in development area A, 16% elsewhere in Israel, without time limit. Dividends are generally taxed at 20%. The resulting combined tax burden on distributed profits is generally 26% – 32.8% subject to any tax treaty. Lower rates are possible for certain large enterprises with annual revenues over NIS 10 billion.

There are also tax breaks for: capital gains of foreign resident investors,), agriculture, approved institutional (long term) rental buildings, oil and gas exploration and production and movie productions. 

Various business support programs exist. R&D grants typically range up to 50% and up to 100% financing in designated incubators. Companies operating in a development area may receive additional grants of up to 10% – 25%.

Business advice and assistance is available from the Ministry of Aliya & Immigration Integration and from the Small Business Center (MATI). Grants may be repayable by way of a sales royalty. See below regarding international agreements.

See the Annex on the Israel Innovation Authority (IIA) and its range of R&D grant programs.

Salaries and business profits of freelancers are subject to income tax at rates ranging up to 50% or 52% if there is also investment income above certain levels.

The VAT standard rate is 18%. Most small dealers with annual revenues below NIS 122,833 are exempt from collecting and remitting output VAT on revenues but cannot recover input VAT on expenditure. They may elect a flat expense deduction of 30% of revenues.

Remittances to and from Israel are subject to tax compliance checks by the Israeli banks.

 

There is currently no wealth tax nor estate/inheritance tax in Israel.

International Agreements:

Israel has income tax treaties with 60 countries including the US, the UK, Australia, Canada, South Africa and UAE.

Israel is a party to a FATCA Intergovernmental Agreement with the USA regarding information exchange, the OECD Common Reporting Standard,  the OECD Multilateral Instrument (MLI) to Implement BEPS Tax Treaty Related Measures and the OECD Inclusive Framework.

Israel has free trade agreements with: Canada, Colombia, the EU, EFTA, Guatamala ,Jordan, Mercosur (Argentina, Brazil, Paraguay, Uruguay), Mexico, Panama, Turkey, South Korea, UAE, Ukraine, Vietnam, the USA and the UK.

Free trade negotiations are under way with Bahrein, China, Costa Rica, India, Eurasian Economic Union (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan).

Over the years Israel has entered into many R&D cooperation agreements. The Israel Innovation Authority has bilateral R&D programs with the US (BIRD), EU (Horizon Europe), India (I4F), Singapore (SIIRD) and Korea (KORIL) among others. Israeli companies can get assistance finding a joint venture company in these countries. The grant rate is typically up to 50%, repayable by sales royalty.

Israel is a member of the IMF, the OECD, the UN, World Bank Group, GATT, GATS, TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights) and many more.

National Insurance (Social Security): 

The main National Insurance (Bituach Leumi) rates in 2026 are as follows:

  • Resident employees: 4.27%-12.17% 
  • Employers of resident employees: 4.51%-7.60%.
  • Major shareholder employees: 4.25%-11.96%
  • Employer of major shareholder: 4.46%-7.38%
  • Resident employee home helps: 2.8%
  • Employers of resident home helps: 6.05%
  • Nonresident employees: 0.1%- 0.87% 
  • Employers of nonresident employees:  0.75%-2.65% 
  • Freelancers: 7.7%- 18% (52% of the NI amount paid is tax deductible) 
  • Not working: 12.09%-12.17% (52% of the NI amount paid is tax deductible) 
  • Early pension recipients: 4.25%-11.96%
  • Payment if no income: NIS 266 per month.

No National Insurance liability applies to monthly income exceeding NIS 51,910. There is generally no National Insurance liability on dividends and capital gains. Housewives are generally exempt. Immigrants (Olim), Returning Minors and Immigrant Citizens that do not have income from employment or income from other sources exceeding NIS 688  per month may be exempt from National Insurance for up to 12 months.

The above is subject to any applicable social security (“totalization”) treaty. Israel has such treaties with Argentina, Austria, Belgium, Bulgaria, Canada (except Quebec(, Czech Republic, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Poland, Romania, Russia, Slovakia, Sweden, Switzerland, Uruguay and the UK.

New and Returning Residents (“Olim”):

New residents and senior returning residents (lived abroad 10 years) who took up Israeli fiscal residence since  January 1, 2007 are generally exempt from Israeli tax on non-Israeli source income for 10 years.

The exemption does NOT apply to income for work done in Israel for a foreign firm. Citizenship is not relevant for these purposes. Keep a monthly diary of where you worked day by day. Olim do not need to report overseas income or assets in their 10 year Israeli tax holiday.

Olim also enjoy an exemption for 5 – 20 years regarding interest on Patach foreign-currency time deposits of three months or more at an Israeli bank.
On Israeli source income, new immigrants receive extra  1-3  personal “credit points” per year which reduce taxes by NIS 242 – 726 per month for four and a half years.

Foreign Expatriates in Israel

Israel’s tax treaties sometimes grant an income tax exemption for employees resident in those countries but working in Israel.

Otherwise, non-residents working in Israel lawfully in their field of expertise for an employer as “foreign experts” who are paid at least NIS 14,800 per month, may enjoy a deduction for accommodation expenses and a daily living expenses deduction of up to NIS 360 for up to 12 months, provided they are invited by an Israeli employer that is not an employment agency.

Tax Registrations:

A business must register for Israeli tax purposes immediately the business activity starts.  If you wait until after the year-end, you will probably be fined.

You start with the VAT registration. In Israel, you cannot legally bill your customers until you are registered for VAT purposes. And you can’t do that without first opening a business bank account, and providing a cancelled check and a copy of your premises’ lease or purchase agreement. The VAT Authority insists on at least one Israeli resident director or fiscal representative in the case of a company. 

If you are self-employed and your annual revenue is less than NIS 122,833 in 2026 you may be an “Exempt (or Small) Dealer” (below the threshold).  You are still liable to income tax and national insurance (social security) but probably not much.  But an Exempt Dealer is exempt from the need to collect output VAT from customers and cannot recover input VAT on expenses.  An exempt dealer must issue receipts (not tax invoices) to customers and keep a Receipts & Payments Book in a prescribed format.

Above that revenue level, businesses must register as an Authorized Dealer. That means issuing tax invoices, offsetting VAT on expenses against VAT on revenues, keeping approved accounting records, and reporting monthly or bimonthly to the VAT and income Tax Authority. 

People in some professions are not allowed to be Exempt Dealers for VAT purposes and can only be Authorized Dealers. These include: Agronomist, architect, technician, private investigator, Rabbinical attorney, dental technician, organizational consultant, management consultant, scientific consultant, economist, engineer, surveyor, bookkeeper, translator, insurance agent, lawyer, accountant, appraiser, chemical or medical laboratory owner, artistes,  various others in show business, doctor, psychologist, physiotherapist, veterinary surgeon, dentist, driving school owner, school owner, real estate agent or dealer.

Once the VAT registration is sorted out, a business can go on to register for income tax and national insurance (social security) purposes.

Pay Tax As You Go:

Every year, the business taxpayer will receive demands to pay VAT, payroll taxes, income tax, and tax installments on profits (Mikdamot). These installments are usually set at a percentage of monthly revenue and must be paid unless reduced by agreement with the local tax office.

The installments are merely a payment on account of the annual tax on profits and a reckoning up is done after the year-end by filing annual tax returns.   These are usually filed online with supporting documentation (Israeli annual bank confirmations, annual employer confirmations, pension payment confirmations, foreign tax confirmations, etc).

The above installments are generally due regularly on the 15th or every other 15th of the month (not VAT in the case of Exempt Dealers). Israeli tax must be paid in Shekels using an Israeli bank account or Israeli credit card. Accountants typically pay the tax online using direct debit approval from the taxpayers to their Israeli bank. Alternatively, Israeli tax may be paid using an Israeli credit card up to certain limits or by check (cheque) at a Post Office.  Lateness results in penalties. Persistent lateness (3 or 4 times) can result in a prohibition on doing business with the government, public institutions and public companies.

Essential Paperwork:

There are strict bookkeeping and customer billing rules – approved Israeli software or printed books must be used – not Excel, Word, QuickBooks or Sage. Otherwise, the Israeli Tax Authority not only levies fines, it can also estimate taxable income, which is never good for the taxpayer.

Businesses issuing tax invoices in January-June 2026 over NIS 10,000 before VAT must obtain an “Israel Invoice” allocation number from the Israeli Tax Authority. Commencing July 1, 2026 that threshold amount decreases to NIS 5,000.  Allocation numbers will typically be obtained automatically by approved Israeli accounting software.

In practice, smaller businesses typically outsource accounting and tax reporting functions to an accountant or bookkeeper who has the approved software and can deal with the filings by the 15th. They must let the accountant or bookkeeper have all the paperwork on a regular basis throughout each month. They should also provide read-only access to their bank accounts and credit card accounts on the internet. Larger businesses usually have in-house accounting departments.

A freelancer with annual revenue up to NIS 122,833  may elect to be a “Small Dealer” (Osek Zair) when filing his annual income tax return, and claim a flat expense deduction of 30% of revenues for income tax purposes. This is instead of deducting actual expenses.  The 30% expense deduction will not be available if any of the following apply: the freelancer has employees, inadequate books, unearned business income, an employer also pays freelance income to the individual, part of the income is from a transparent entity (house property or family company, over 25% of freelance income is from a related party, 10%-or-more shareholders (in any company apparently), anything else prescribed by the Finance Minister.

Self-employed businesses and 10%-or-more shareholders are also usually requested to file a capital declaration (Hatsharat Hon) at the outset and every few years, listing their personal assets and liabilities. This is to help the Tax Authority see if the increase in assets have outstripped reported income.

On the General Business Front:

Set business goals over time and prepare a business plan – it may improve your chances of success and reduce surprises. You need to know your unique selling point(s) that will make you competitive and in demand.  Consider whether franchising is for you. If you have intellectual property (unique technology, knowhow, brand, etc), consult a patent attorney about protecting it.

In particular, estimate your finance needs and available sources – family and friends, suppliers’ credit, venture capital funds, angels, etc. Choose a bank you are comfortable with – but don’t expect an Israeli bank to lend you much unless you put up solid collateral.  Decide whether to operate from an office, hub, accelerator and/or from home.

Check if you need a business license. Choose an appropriate business name and logo. Go for customers by networking – some networking groups are quite effective. Consider hiring a marketing consultant. Build a catchy website and social media presence and design your stationery and graphics with care.

Register for municipal taxes and utilities. Install appropriate communications and computer systems. Get adequate insurance. Consult lawyers regarding legal matters.

Employees and Freelancers:

Once employees have worked 3 – 6 months at a firm, they are entitled to mandatory pension and severance funding. The stipulated minimum pension fund contribution is 18.5% of gross salary. The employer generally pays 6.5% towards pension funding and 6% towards severance funding. The employee pays 6% towards pension funding.

“Study Funds” (Hishtalmut) are also common but not mandatory – the employer usually pays 7.5% of gross salary and the employee 2.5% up to prescribed limits. The employer deducts his cost for tax purposes and the employee is exempt and can use the money for any purpose if no withdrawals are made for 6 years.

A similar Study Fund arrangement is available to the freelancers (self-employed) – they can contribute 7% and deduct 4.5% as an expense within prescribed limits.

The self-employed must contribute 4.45%-12.55% of income into a pension-unemployment fund within certain limits.

Employees are also entitled to reimbursement of their home-to-work travel costs, a recreation bonus (Havraah) every summer according to a formula, and severance pay (one month’s salary per year of service) if dismissed or in certain other cases.

Approved employee share ownership / option plans (ESOPs) are popular as employees may pay only 25%-30% tax if various conditions are met. International plans should have an Israel annex. 

Records must be kept of time worked by employees, vacation taken, sick leave, etc. Be sure to consult an Israeli lawyer about labor law and employment contracts among other things.

Real Estate:

Home rental income of up to NIS 5,654 per month is exempt for individuals. Thereafter, several possibilities exist – regular tax on net income, flat rate tax of 10%. Companies pay tax at regular rates.

Real estate acquisition tax rates range up to 10% generally. For an Israeli resident purchaser with no other home in Israel, the first NIS 1,978,745 may be exempt from purchase tax. Thereafter, purchase tax rates range up to 10%.

The gain from the sale of an only home in Israel by a resident individual may be exempt from tax provided its value does not exceed NIS 5,008,000. Otherwise, home sales are generally taxed at 25%-52%.

Payment of tax at rates up to 47% of the inflation-adjusted gain is generally made to the Real Estate taxation Department when transferring title.

The seller is supposed to report the sale again on an annual income tax return whereupon a further 3%-5% surtax may be demanded by the Income tax Department.

Securities:

Passive income derived by individuals from securities are generally taxed at rates of 25%-35%. Traders and companies pay tax at regular rates.

Estates, Inheritances and Gifts 

There is no tax in Israel on estate or inheritances. There is also no tax on gifts to Israeli residents. But capital-gains tax is payable at rates of 25%- 50% on: 

  • Gifts to foreign residents except for cash;
  • Sale of assets acquired by way of a gift or inheritance.

Next Steps:

  • Please contact us for tax and business advice to help you get started.
  • After that we will provide tax reporting and business mentoring
  • Also multinational family wealth planning,
  • M&A (mergers and acquisitions) advice
  • And e-commerce tax planning

About Us:

  • We are accountants based in Ramat Gan, Israel with clients in Israel and many other countries.
  • Our services include accounting and tax advisory services for businesses, e-commerce operations, entrepreneurs, families and trusts.
  • We also specialize in M&A, diligence and family office services.
  • Our numbers speak your language…..

Consult experienced tax and legal advisors in each country at an early stage in specific cases.

© 24.2.2026  All Rights Reserved.

ANNEX: Israel Innovation Authority (IIA) And its R&D Grant Programs

R&D grants have contributed to Israeli high tech success over the years. By contrast, tax incentives are of less help to start-ups not yet paying tax as they have no profits. Clever geeks leave the IDF with many bright ideas. The venture capital (VC) funds in Israel provide a strong dose of capital, education and financial discipline. The Israel Innovation Authority (IIA) is an important source of R&D grants.

Israel Innovation Authority (IIA):

The IAA aims to offer a competitive investment environment by de-risking private sector investment through government backed non-dilutive grants from ideation through re-seed, seed and A rounds. The grants are repayable by royalties of 3%-5% of revenues, if any until the full amount plus interest (based on SOFR) is repaid.

Funded R&D should be done in Israel. If funded know-how is sold or transferred outside Israel, usually after an M&A deal, repayment is required according to a formula, capped at 6 times the grant plus interest, or only three times the grant plus interest the acquiring company commits to keeping R&D jobs in Israel for at least 3 years.

The formula, before caps, is:

Repayment = (Grants/ (R&D expenses+ Grants)) * Sale Price

Below is a brief listing of the main IIA grant programs for R&D.

R&D Fund:

  • Aimed at: companies developing new products or upgrading an existing technology. For all sectors including hardware, software, communications, complex systems, life systems, medical devices, cyber, IOT, cleantech and others.
  • Potential benefit: Financial support of 20%-50% of approved R&D expenditure. Additional 10% in development areas. Up to 75% in the first year and 70% in the second year for a startup company owned by a minority population and/or Ultra Orthodox and/or women
  • Main terms: Repayable by royalty payments only if the company successfully reaches commercialization

R&D Fund For Manufacturing Industry:

  • Aimed at: developing production processes
  • Potential benefit: 40% of approved budget up to NIS 3 million grant over 12 months or NIS 6 m grant over 24 months. Additional 10% in development areas A & B.
  • Main terms:
  • Repayable?

Ideation (Tnufa) Incentive Program:

  • Aimed at: Fledgling entrepreneurs
  • Potential benefit: Proof of concept and business feasibility support. Don’t have to leave current job to establish a company!
  • Main terms: 80% of approved budget, grant up to NIS 200,000.

Startup fund:

  • Potential benefit and targets: Pre-seed 60% of investment round up to NIS 1.5m grant, Seed 50% of investment round up to NIS 5m grant and Round A stage companies 30% of investment round up to NIS 15m grant. Additional 10% if supports under-represented populations such as Arabs, Ultra-Orthodox, Women, periphery region
  • Main terms: Repeatable up to limits.

R&D Preparatory Incentive Program for Companies in the Manufacturing Industry:

  • Aimed at: formulating new products, assessing technological feasibility, solving flaws, improving production processes.
  • Potential benefit: 66% of approved budget up to NIS 75,000 or 75% : 66% of approved budget up to NIS 100,000 in development area A.

Pre-Product Innovative Technology in Industry:

  • Aimed at: Promoting the feasibility of pre-product applied research of cutting-edge technologies in large companies which (1) invest heavily in technological innovation – over 200 employees or R&D budget over USD 20 million p.a, with company revenues over USD70 m per year or part of a group with revenues over USD 2.5 bn p.a.
  • Potential benefit: Up to NIS 15m for program taking up to 3 years
  • Main terms: Various

Technological Incubators Program – For Entrepreneurs

  • Aimed at: Private entrepreneurs, entities interested in establishing technological incubators in accordance with a relevant call for proposals.
  • Potential benefit: Up to 85% of the approved budget up to a maximum budget of NIS 3.5m for a period up to 2 years. Further grant possible in year 3 according to the program’s regulations.

Also, a grant of up to 15% of the approved budget from the incubator, making up to 100% funding possible, no financial investment by the entrepreneur. Space and admin services from the incubator and access to potential partners, customers and additional investors.

Bio-Convergence program: Increased grants of NIS 2.5m-NIS 3.5m possible for innovative solutions combining biology and engineering and advanced genetic engineering

Venture Incubators Funding Program – For Investment Institutions

  • Aimed at: venture capital firms, multinational companies, experienced investors.
  • Potential benefit: up to NIS 40 million grants over 5 years regarding management fees, capital expenditure and central lab equipment, as follows: 70% of approved expenses for 2 years plus 60% for next 2 years plus 50% in year 5.
  • Main terms: Financial resources at least NIS 120m plus full time professional team – CEO, CTO, Chief Business Officer. Non-profit entities maximum 20%. Need a business plan.

MOFET industrial accelerators:

  • Aimed at: partnerships between R&D companies, labs or prototyping firms and strategic firms or VC (venture capital) funds.
  • Potential benefit: Up to NIS 5m over 5 years.
  • Main terms: Full time CEO, CTO or VP of Business Development at 75% capacity.

Innovation Centers:

  • Aimed at: connecting academia, industry leaders and investors in order vto expand entrepreneurship and high tech activity to the entire population and regions. Operated by licensees chosen through a competitive process.
  • Potential benefit: Support from IIA includes “significant” grants, professional guidance, creating collaborations. Private investors and multinational companies can invest directly in startups, collaborations or the establishment of R&D Centers.

Innovation Labs Program:

  • Aimed at: assisting entrepreneurs in the preliminary stages of a project, who need infrastructure and expertise to prove the feasibility of a technological idea. The assistance is provided through innovation labs operated by the industry’s leading corporations.  
  • Potential benefit: Innovation lab companies:  33% of tech infrastructure costs (50% in periphery regions) up to NIS 4m. Also 50% of the lab’s ongoing expenditure up to NIS 500,000. Early stage entrepreneurs and startups: up to 85% of approved budget, up to NIS 1 m for a year.

Applied Research Consortia:

  • Aimed at: Applied research collaboration between companies and research institutions that form a consortium for up to 3 years. The consortia may be industrial, knowledge building or niche orientated.
  • Potential benefit:
  • Main terms: 66% of approved budget for Israeli companies, 100% for a research institution (80% as a grant 20% from consortium companies. Foreign and Israeli companies can be full members or observers. An observer  has no rights to consortium IP (intellectual profit).
  • Exempt from repayment royalties.

R&D Labs and Databases accessible to all industry:                       :

  • Aimed at: R&D based companies to make generally available R&D infrastructure
  • Potential benefit: grant of 55%-66% up to NIS 5m for infrastructure equipment , 55%-66% of Users Association approved expenditure for establishment and ongoing operation for up to 6 years
  • Main terms: Mainly continuation cases for applicants up to 2025

Human Capital for High-Tech Fund:

  • Aimed at: Advancing programs for recruitment, sorting, training, internship and placement of high-tech employees.
  • Potential benefit: Initial establishment stage: 50%-70% of approved budget of up to NIS 1m; growth/scale up stage: 30%-70% of approved budget of up to NIS 15m
  • Main terms:
  • Repayable?

Bilateral Funds Incentive Programs:

  • Aimed at: Israeli companies collaborating with foreign companies. There are currently 5 bi-national funds:
    • I4F:  Israel-India (50% up to $2.5m per project, half from IIA, half from
    • BIRD: Israel-USA (50% up to $1.5m per project);
    • SIIRD: Israel-Singapore (50% up to $1.5m on R&D track, 66% 0r USD 3m on strategic track, other smaller tracks exist)
    • KORIL Israel-Korea (up to 50% of direct R&D)
    • Japan Israel: (up to 50%of R&D expenses)
  • Potential benefit: 50% of the approved R&D budget.
  • Main terms: Different programs for each fund.

Incentive Program for Adapting Products for Emerging Markets:

  • Aimed at: Tech companies making engineering and technological changes to products for emerging markets. Includes changing manufacturing process, regulatory adaptations, beta site, utility patent, etc.
  • Potential benefit: Up to 50% of recognized expenditures

Program for Boosting Participation of Israeli Companies in the European Frameworks Program – Horizon:

  • Aimed at: Israeli companies interested in EU Consortiums track or SME Instrument Phase 2, or long term participation in the EU Framework Program
  • Potential benefit: Program 37A – up to 75% of approved expenditures up to NIS 40,000 of travel and conference expenses to locate partners, and authorized consultation to write the request. Program 37B – long term participation up to 3 years – up to 85% of approved expenditures of up to NIS 70,000 for participation in European Industrial Associations, travel and conference expenses to locate partners, and authorized consultation to write the request

China-Israel Changzhou Innovation Park (CIP) Initiative:

  • Aimed at: Bi-national initiative for Israeli industrial companies entering the Chinese market. Jiangsu is a prosperous innovation orientated province on the east coast of the Peoples Republic of China  with a population of 80 million, which signed an R&D agreement with Israel in 2011.
  • Potential benefit: Grants and financial incentives, manufacturing space, laboratories, workshops, assistance in protecting IP, support in hiring high quality local labor, subsidies for equipment, logistic management and other services
  • Main terms: individualized package.

R&D Collaboration with Multinational Corporations (MNC) Program:

  • Aimed at: MNCs with annual revenues over USD 1.5bn and unrelated Israeli companies with R&D focus
  • Potential benefit: one-stop shop support. The IAA and MNC invest equally in R&D projects. The MNC investment can include cash,  in-kind resources such as technological guidance, manpower, equipment use of labs, discounted/free software licenses, regulatory advice. MNCs may gain preferential access to knowhow and technologies not otherwise available, and assistance in identifying such Israeli companies.
  • Main terms: IP rights: Israeli company subject to the R&D Law restrictions regarding use of the new knowhow – i.e. support repayable generally up to 600% if sold or transferred abroad. The MNC would have unrestricted, royalty—free right to use the new knowhow inside or outside Israel provided that the right of the Israeli company to use/exploit the new knowhow is not negatively affected. IP rights are handled in one of the following ways: (1) joint ownership, (2) Israeli company owns and provides the MNC a non-exclusive license, (3) Sole ownership by the Israeli company
  • Repayable?

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