Regulatory

When requesting to provide investment consulting or investment marketing or portfolio management to the greater Israeli market one need to take under advisory that the trade of investment is a highly regulated one in Israel.

According to the law which regulates the above mentioned actions one is able to provide these services without having the necessity of acquiring a license if the following terms are met:

1. The investment advisory or portfolio management is provided to no more than 5 clients per calendar year (The advisory is permitted only to individuals and not to a corporation).
2. The investment advisory is permitted to be given in the general media.
3. The investment advisory is given to a sophisticated client:

Definition of a sophisticated client:

1. Total value of all assets (cash, deposits, financial assets) exceeds 12M NIS (around 3M CHF).
2. The client has proven skills in the capital market or was employed for at least one year in a professional role requiring expertise in the capital market.
3. Has performed at least 30 transactions in average per quarter in the previous four quarters prior to his consent.

• At least two of the above-mentioned terms must be met.

Over the last years the state of Israel had made several extensive changes to its tax ordinance which provided with tax benefits to new immigrants.

One must remember that unlike the United States, Israel is not Immigration derived country and has strict laws regarding who may immigrate to it. One should also take under consideration that in order to gain the tax benefits he\she does not have to become a citizen of Israel but merely a resident.

In this article we shall provide a summary of the types of permits one can apply for;

1. Alia Permit (immigration permit):

According to the “law of return – 1950” it has been stipulated that every Jewish person has the fundamental right to immigrate to Israel or in Hebrew “Laalot”.

According to the law, a Jew is whoever was born to a Jewish mother or converted and he is not a member of any other religion.

2. Temporary Permit (Alef\1) potential immigrant:

The Alef\1permit will be given to those who have completed the process in front of the Jewish agency representative.

3. Temporary Permit (Alef\2) Student:

This is a permit being granted to those who wish to visit Israel for the purpose of studying in elementary schools, high school academic institutions, Talmudic collage (Yeshiva) and the Jewish Agency youth institutions. The validity of the permit is for one year.

4. Temporary Permit (Alef\3) Religious man\women:

This permit is granted for a religious person for the purpose of fulfilling his\hers religious role among his group.

5. Temporary Permit (Alef\4) children and spouses of Alef\2-3 holders:

This permit will be given to the spouses and children of those who obtain an Alef\2-3 permit.

     6. Working Permit (Bet\1):

This permit shall be given to a person that his staying in Israel was approved for a limited time for work purposes.  This permit is granted among the rest specialists and artists and it is given solely by the minister of internal affairs.

     7. Visitor Permit (Bet\2):

This permit is granted for those wishing to stay in Israel for short visiting purposes up to 3 months. This permit can be extended.