Israel

Equity-based compensation has become a cornerstone of employee incentive strategies, particularly in the tech industry. As a result, the design and tax planning of such plans are especially critical. Getting it right means allowing the employee to maximize value without exceeding the bounds set by Israeli income tax law. Knowing the dos and don’ts will help you avoid unpleasant surprises with the Israeli Tax Authority.

In the wake of prolonged geopolitical instability, internal political uncertainty, and the rise of global anti-Israeli sentiment, a growing number of Israeli entrepreneurs are choosing to incorporate their startups abroad—seeking stability, greater access to international investors, and strategic insulation from regional volatility.