How Israel investors can benefit from low taxation

Israel is one of the richest economies in the world and many investors from this country are present in states with prolific business environments.

 (photo credit: INGIMAGE)
(photo credit: INGIMAGE)
Israel is one of the richest economies in the world and many investors from this country are present in states with prolific business environments. However, just like investors from other countries, Israel business owners seek to maximize their profits, one of the best ways of doing that is by carefully choosing the countries where they set up operations. Most of the times, these countries should provide for an advantageous taxation system.

There are plenty of options of countries in which Israel investors can set up companies and benefit from low taxes. Some of them are presented below.

Offshore companies – a good option for low taxes

One of the best ways of benefitting from low taxes is to create an offshore company. There are many offshore destinations in which companies are subject to 0% corporate taxes. Among these, one of the most famous destinations is the Cayman Islands. In order to benefit from no corporate taxes, an Israel investor should register a non-resident company in the Caymans.

European countries can also provide for low taxes

Many European countries have started following the example of Middle Eastern and Asian countries in which the taxes are the lowest in the world. One of the preferred destinations of investors in Israel is the UK, and companies here can benefit from low taxes provided that the local tax laws are respected; otherwise they can ask for legal advice from UK lawyers specialized in tax fraud. This way, one will make sure the company is legally entitled to obtain the tax benefits granted by the authorities here.

Choosing countries with double tax treaties with Israel

One of the best ways of ensuring a low taxation is choosing a country which has an agreement for the avoidance of double taxation with Israel. This is suitable for investors who want to set up new businesses and for those seeking to expand their existing companies abroad. As a matter of fact, such agreements represent one of the best ways through which both the company and the shareholder/s can obtain tax reductions or even exemptions.

As mentioned above, Israel is one of the most prolific economies in the world which is why it also has many trade agreements with other countries. These conventions enable investors to select the countries in which they want to operate based on their needs, including  the taxation systems which provide for the lowest rates, if this is the most important advantage for them.