REMOTE WORK AND FREELANCE

OPTIONS IN ISRAEL

A Comprehensive Guide for Digital Nomads, Remote Workers, and Freelancers

TABLE OF CONTENTS

1.        Overview: The Remote Work Landscape in Israel

2.        Working Remotely for Foreign Companies

3.        Freelancing and Self-Employment

4.        Legal and Tax Considerations

5.        Setting Up Your Business in Israel

6.        Payment Methods and Banking

7.        Industries and Opportunities

8.        Platforms and Finding Work

9.        Practical Setup and Infrastructure

10.     Challenges and Solutions

11.     Resources and Support

1.   OVERVIEW: THE REMOTE WORK LANDSCAPE IN ISRAEL

Why Israel is Excellent for Remote Work

Advantages:

ï           Strong tech infrastructure and high-speed internet nationwide

ï           Strategic timezone (overlaps with both Europe and East Coast USA)

ï           Highly educated, English-speaking workforce

ï           Thriving startup and tech culture

ï           Excellent quality of life and climate

ï           No professional licensing required for most remote work

ï           Tax benefits for new immigrants (see Tax Section)

ï           Growing digital nomad community

ï           Coworking spaces widely available

ï           Beach and café culture conducive to remote work

Challenges:

ï           High cost of living (especially Tel Aviv, Jerusalem)

ï           Complex tax system

ï           Hebrew bureaucracy

ï           Banking can be difficult for newcomers

ï           Time zone differences (challenging for Asia-Pacific)

ï           Military reserve duty for Israeli citizens (men)

ï           Security situation considerations

Types of Remote Work Arrangements

1.  Employee of Foreign Company

**Setup: **You work remotely from Israel as an employee of a company based abroad.

Legal Status:

ï           You are a foreign employee working in Israel

ï           Company does not have Israeli entity

ï           You receive salary in foreign currency

Pros:

ï           Stable employment

ï           Benefits (health insurance, 401k/pension from home country)

ï           Salary in stronger currency (USD, EUR, GBP)

ï           No need to handle Israeli business bureaucracy

ï           Clear employment relationship

Cons:

ï           Tax complexity (two countries)

ï           Potential employer concerns about tax nexus

ï           Benefits may not translate to Israel

ï           Visa/work permit considerations for non-citizens

ï           Time zone challenges

ï           May need to travel for meetings

2.  Contractor/Freelancer for Foreign Clients

**Setup: **You operate as independent contractor/freelancer providing services to foreign clients.

Legal Status:

ï           Self-employed (Osek Patur or Osek Murshe)

ï           Issue invoices for services

ï           Pay Israeli taxes as self-employed

Pros:

ï           Flexibility and autonomy

ï           Multiple clients/income streams

ï           Can set your own rates

ï           Tax benefits if new immigrant

ï           Work on your schedule

ï           Choose your projects

Cons:

ï           Irregular income

ï           Must handle own taxes and accounting

ï           No benefits (health insurance through Bituach Leumi)

ï           Retirement planning your responsibility

ï           Business setup required

ï           Must chase payments

ï           Need multiple clients for stability

3.  Employee of Israeli Company (Remote)

**Setup: **You work remotely for an Israeli company from within Israel.

Legal Status:

ï           Standard Israeli employment

ï           Israeli labor law applies

ï           Receive salary in shekels

Pros:

ï           Stable employment

ï           Israeli benefits (pension, vacation, sick days)

ï           Health insurance through Bituach Leumi

ï           Protected by strong labor laws

ï           Simpler tax situation

ï           Integration into Israeli work culture

ï           Hebrew practice

Cons:

ï           Salary in shekels (subject to currency fluctuations)

ï           Israeli salaries often lower than US/Europe

ï           Intensive work culture

ï           Less flexibility than freelancing

ï           Annual vacation days limited (though generous by US standards)

4.  Hybrid: Remote Employee + Freelancing Setup: **Maintain employment plus side freelance work. **Legal Status:

ï           Employee for one company

ï           Self-employed for freelance work

ï           Must report both income streams

Pros:

ï           Financial stability plus extra income

ï           Diversified income

ï           Maintain benefits through employment

ï           Flexibility from freelancing

ï           Build client base while employed

Cons:

ï           Time management challenges

ï           Complex tax situation

ï           Energy management

ï           Potential conflicts of interest

ï           Need clear boundaries with employer

5.  Digital Nomad (Short-Term)

**Setup: **Working remotely while traveling, including stays in Israel.

Legal Status:

ï           Tourist visa (B2) allows up to 90 days

ï           Technically gray area for working on tourist visa

ï           No Israeli tax obligation if staying under 183 days

Pros:

ï           Maximum flexibility

ï           Experience living in Israel short-term

ï           No bureaucratic setup required

ï           Can test if you like Israel before committing

Cons:

ï           Cannot stay beyond visa limits

ï           Gray legal area (most countries prohibit work on tourist visa)

ï           No legal residency

ï           Cannot open bank account

ï           Cannot sign apartment lease

ï           Unstable situation

**Note: **Israel does not currently have a specific digital nomad visa, though there have been proposals.

Who Can Do Remote Work in Israel?

Israeli Citizens and Permanent Residents

Can:

ï           Work for any company (foreign or Israeli)

ï           Freelance for any clients

ï           Establish businesses

ï           No work permit needed

Must:

ï           Pay Israeli taxes on worldwide income (unless new resident status)

ï           Register as self-employed if freelancing

ï           Fulfill military reserve duty if applicable (men under 40, women under 24)

New Immigrants (Olim)

Can:

ï           Work for foreign companies remotely

ï           Freelance for foreign clients

ï           Establish businesses

ï           Receive substantial tax benefits (new resident status)

Must:

ï           Pay Israeli taxes (but with major exemptions, see Tax Section)

ï           Register as self-employed if freelancing

ï           Eventually fulfill military service if under age limits

**Major Advantage: **10-year tax exemption on foreign-source income (potentially worth hundreds of thousands of dollars)

Foreign Residents with Work Visas

Can:

ï           Work for sponsoring employer

ï           May be able to freelance (depends on visa type)

Must:

ï           Comply with visa restrictions

ï           Pay Israeli taxes

ï           Maintain valid visa status

Limitations:

ï           Tied to specific employer (often)

ï           Cannot easily switch jobs

ï           Limited freelancing rights

Tourists/Visitors

Gray Area:

ï           Tourist visa does not authorize work

ï           Technically cannot work even remotely

ï           In practice, many digital nomads do work remotely on tourist visas

ï           Authorities rarely check or enforce for genuine tourists

ï           Stay under 183 days to avoid tax residency

Risks:

ï           Visa violation if caught

ï           Deportation possible (rare for remote work)

ï           Cannot access local services

ï           Unstable situation

**Better Approach: **Make aliyah, get proper residency, or limit stays

2.   WORKING REMOTELY FOR FOREIGN COMPANIES

Employment Considerations

Tax Nexus Concerns

**What is Tax Nexus? **When a company employs someone in a country where they don't have a legal entity, they may create tax obligations in that country.

Company Concerns:

ï           Having an employee in Israel may trigger corporate tax obligations

ï           May need to register with Israeli tax authorities

ï           May need to withhold Israeli income tax

ï           May be liable for Israeli employer social contributions

ï           Complex compliance requirements

Reality:

ï           Many companies don't understand or care (especially startups)

ï           Some companies prohibit international remote work for this reason

ï           Others handle it through Employer of Record (EOR) services

ï           Some accept the risk and do it anyway

Common Company Arrangements

1.  Direct Employment (Company Assumes Risk) Setup:

ï           You remain employee of foreign company

ï           Work remotely from Israel

ï           Company pays you as they always have

ï           Company accepts potential tax nexus risk

Works Best For:

ï           Small companies with relaxed policies

ï           Startups

ï           Companies already international

ï           Remote-first companies

ï           Short-term arrangements

Your Responsibility:

ï           Pay your own Israeli taxes

ï           Handle your own Israeli social insurance (Bituach Leumi)

ï           File Israeli tax returns

ï           Potentially lose company benefits that don't transfer

2.  Contractor Conversion Setup:

ï           Company terminates employment

ï           You become independent contractor/freelancer

ï           Invoice company for services

ï           Company pays invoices (no taxes withheld)

Pros for Company:

ï           No tax nexus concerns

ï           No Israeli compliance requirements

ï           Clean separation

ï           Flexibility

Pros for You:

ï           Can continue working for company

ï           Higher rates potentially (no employer benefits cost)

ï           Full tax benefits if new immigrant

ï           Flexibility to take other clients

Cons for You:

ï           Lose employee benefits (health insurance, 401k, etc.)

ï           Responsible for own taxes

ï           Irregular payment (invoice-based)

ï           Less job security

ï           Must handle own accounting

ï           Need to establish Israeli business entity

How to Negotiate:

ï           Request rate increase to compensate for lost benefits (typically 25-40% higher)

ï           Clarify payment terms (net 30? net 60?)

ï           Long-term commitment/contract

ï           Project pipeline guarantee

ï           Professional services agreement

3.  Employer of Record (EOR) Services Setup:

ï           Company hires EOR service (e.g., Deel, Remote, Papaya Global)

ï           EOR becomes your legal employer in Israel

ï           EOR handles all compliance, taxes, benefits

ï           You work for original company, but employed by EOR

ï           Company pays EOR, EOR pays you

Advantages:

ï           Compliant solution for company

ï           You remain employee (benefits, stability)

ï           No tax nexus for company

ï           Israeli taxes automatically withheld

ï           Israeli benefits provided (pension, etc.)

ï           Payroll, compliance handled

Disadvantages:

ï           EOR fees (company pays, typically 15-30% of salary)

ï           May lose new immigrant tax benefits (EOR withholds taxes)

ï           Less flexibility than contractor status

ï           Must coordinate with EOR for issues

Popular EOR Services in Israel:

ï           Deel (deel.com)

ï           Remote (remote.com)

ï           Papaya Global (papayaglobal.com) - Israeli company

ï           Omnipresent

ï           Velocity Global

ï           Atlas

How It Works:

1.        Company signs up with EOR
2.        EOR establishes legal entity in Israel
3.        You transfer to EOR employment
4.        Original company becomes "client" of EOR
5.        You receive Israeli payslip with proper withholdings
6.        Pension, benefits automatically handled

Cost to Company:

ï           Setup fee: $500-2,000

ï           Monthly fee: $400-800 per employee

ï           Percentage of salary: 15-30%

When to Suggest:

ï           Company wants to keep you but concerned about compliance

ï           Mid-size or larger companies with legal departments

ï           Company has budget for EOR fees

ï           You want stability of employment

4.  Israeli Entity Creation Setup:

ï           Company establishes Israeli subsidiary

ï           You become employee of Israeli subsidiary

ï           Full compliance, but expensive for company

Reality:

ï           Only makes sense if company hiring multiple Israeli employees

ï           Common for companies with Israeli R&D centers

ï           Not realistic for keeping one remote employee

ï           Expensive and complex process

Your Tax Obligations as Foreign Company Employee

If You Are Israeli Resident:

ï           Must pay Israeli income tax on worldwide income

ï           Must pay Bituach Leumi (National Insurance)

ï           Must file annual Israeli tax return

ï           **UNLESS **you qualify for new resident status (see Tax Section)

How to Pay:

ï           Self-report income to tax authority

ï           Make quarterly estimated tax payments

ï           Annual reconciliation

ï           May need accountant assistance

New Immigrant Advantage:

ï           If you qualify as "new resident," foreign employment income is TAX EXEMPT for 10 years

ï           Potentially save $20,000-50,000+ per year

ï           Worth hundreds of thousands over decade

ï           See detailed Tax Section below

Maintaining Remote Employment

Best Practices:

Communication:

ï           Over-communicate (offset timezone/distance)

ï           Regular video calls

ï           Document everything

ï           Be visible and responsive

ï           Set clear working hours

ï           Use asynchronous communication well

Timezone Management:

ï           If working US hours from Israel, expect late nights (6pm-2am for East Coast)

ï           If working EU hours, more manageable (1-2 hour difference)

ï           Block calendar appropriately

ï           Set boundaries

ï           Consider hybrid schedule (some overlap hours)

Productivity:

ï           Maintain or exceed pre-remote productivity

ï           Track accomplishments

ï           Regular updates to manager

ï           Meet deadlines consistently

ï           Be proactive

Technology:

ï           Reliable high-speed internet (Israel has excellent infrastructure)

ï           Backup internet solution (mobile hotspot)

ï           Quality webcam and microphone

ï           Proper workspace

ï           VPN if company requires

Legal Protection:

ï           Written remote work agreement

ï           Clear terms of arrangement

ï           Understand your classification (employee vs. contractor)

ï           Know your rights

ï           Keep records

Common Challenges and Solutions

Challenge: Company Says "No" to International Remote Work Solutions:

1.              Educate them:

◦                    Explain tax nexus (may not be issue they think)

◦                    Suggest EOR solution

◦                    Offer to convert to contractor

◦                    Share resources about international remote work

2.              Negotiate trial period:

◦                    3-6 months remote from Israel

◦                    Prove productivity

◦                    Address concerns

◦                    Make it permanent

3.              Accept contractor status:

◦                    Negotiate higher rate

◦                    Maintain relationship

◦                    Greater flexibility

4.              Find new remote-friendly employer:

◦                    Many companies now fully remote

◦                    Some specifically hire internationally

◦                    Tech sector increasingly flexible

Challenge: Payment in Foreign Currency Solutions:

ï           Open account with international bank (HSBC, Citibank)

ï           Use payment processor (Wise, Payoneer)

ï           Israeli bank with foreign currency account

ï           Cryptocurrency (increasingly common)

ï           Payment platforms (PayPal, Deel)

See Banking Section for details

Challenge: Time Zone Differences Solutions:

ï           Establish core overlap hours

ï           Async work practices

ï           Clear documentation

ï           Flexible schedule

ï           Record meetings for time-shifted viewing

ï           Be explicit about availability

Challenge: Benefits Don't Transfer

Solutions:

ï           Health insurance: Israel has universal healthcare (cheap!)

ï           Retirement: Open Israeli pension account

ï           Vacation: Negotiate into contract if contractor

ï           Life insurance: Purchase individually in Israel

ï           Disability: Through Bituach Leumi

ï           Mental health: Covered by Israeli healthcare

3.   FREELANCING AND SELF-EMPLOYMENT

Overview of Freelancing in Israel

Why Freelance in Israel:

ï           Access global clients while living in Israel

ï           Benefit from Israeli lifestyle and culture

ï           Tax advantages if new immigrant

ï           Freedom and flexibility

ï           Higher earning potential than Israeli salaries

ï           No professional licensing for most fields

ï           Large market of international clients needing services

ï           Strong coworking and freelancer community

Common Freelance Fields:

ï           Software development/programming

ï           Graphic design and UX/UI

ï           Content writing and copywriting

ï           Digital marketing and SEO

ï           Virtual assistance

ï           Consulting (business, tech, marketing)

ï           Translation and localization

ï           Video editing and production

ï           Social media management

ï           Web development

ï           Data science and analysis

ï           Project management

ï           Accounting and bookkeeping

ï           Legal services (for home country law)

Types of Self-Employment in Israel

Osek Patur (פטור עוסק) - "Exempt Business"

**Definition: **Small-scale self-employed person exempt from charging VAT.

Eligibility:

ï           Annual income under ₪101,555 (~$27,450) in 2025

ï           Threshold adjusted annually for inflation

Characteristics:

ï           Cannot charge VAT (18%)

ï           Cannot deduct input VAT

ï           Simpler bookkeeping

ï           Lower reporting requirements

ï           Suitable for side income or small-scale freelancing

Registration:

ï           Register with Tax Authority

ï           Receive Osek Patur number

ï           Free registration

ï           Online through Tax Authority website

Reporting:

ï           Annual income report

ï           Simple form

ï           Can do yourself or use accountant

ï           Due by April 30 following tax year

When to Use:

ï           Starting out as freelancer

ï           Side income while employed

ï           Low volume of work

ï           Testing freelancing

ï           Minimal ongoing expenses

Osek Murshe (מורשה עוסק) - "Licensed Business"

**Definition: **Full business registration with VAT licensing.

Characteristics:

ï           Must charge 18% VAT on invoices

ï           Can deduct input VAT on business expenses

ï           More complex bookkeeping

ï           Monthly or bi-monthly VAT reporting

ï           Professional accounting recommended

Registration:

ï           Register with Tax Authority

ï           Receive VAT number

ï           Register for Bituach Leumi

ï           Free registration

ï           Requires accountant assistance (recommended)

Reporting:

ï           Monthly or bi-monthly VAT reports

ï           Annual income tax return

ï           Financial statements

ï           Must keep detailed records

ï           Professional bookkeeping essential

When to Use:

ï           Income exceeds Osek Patur threshold

ï           Significant business expenses (can deduct VAT)

ï           Working with Israeli clients/companies (they need VAT invoices)

ï           Professional image

ï           Serious, full-time freelancing

Advantages Over Osek Patur:

ï           Can work with Israeli companies (need VAT invoices)

ï           Deduct VAT on business expenses (computers, software, coworking, etc.)

ï           More professional appearance

ï           No income limit

ï           If expenses are high, VAT refunds possible

Disadvantages:

ï           More complex

ï           Monthly/bi-monthly reporting

ï           Need accountant (₪200-500/month)

ï           More paperwork

ï           Higher accounting costs

Company (Chevra Baam - מ"בע חברה) - Limited Company

**Definition: **Separate legal entity, similar to LLC or Ltd company.

Characteristics:

ï           Separate legal person

ï           Limited liability

ï           Corporate tax rate (23%)

ï           Then dividend tax when taking money out (total ~40%)

ï           Complex to establish and maintain

ï           Requires board of directors

ï           Annual financial statements

ï           CPA required

When to Consider:

ï           Very high income (₪1M+ annually)

ï           Multiple employees

ï           Significant liability concerns

ï           Raising investment

ï           Growth/scaling intentions

ï           Want to sell company eventually

NOT Recommended for:

ï           Most freelancers

ï           Solo practitioners

ï           Service providers

ï           Starting out

ï           Simple consulting

Why Usually Not Worth It:

ï           Double taxation (company + dividend)

ï           High setup costs (₪10,000-20,000)

ï           Ongoing compliance costs (₪2,000-5,000/month)

ï           Complex to dissolve

ï           Overkill for most freelancers

Setting Up as Freelancer (Recommended Path)

Step 1: Decide on Business Type

Decision Tree:

**Expected Annual Income < ₪100,000: **→ Start with Osek Patur

ï           Simpler

ï           Can upgrade later if income grows

ï           Good for testing waters

**Expected Annual Income > ₪100,000: **→ Start with Osek Murshe

ï           Avoid need to upgrade mid-year

ï           Better for professional clients

ï           Can deduct VAT on expenses

**Working Primarily with Israeli Clients: **→ Osek Murshe (they need VAT invoices)

**Working Primarily with Foreign Clients: **→ Osek Patur initially, then Osek Murshe when income grows

Step 2: Register with Tax Authority

Required Documents:

ï           [ ] Israeli ID (Teudat Zehut) or passport

ï           [ ] Proof of address (utility bill, rental contract)

ï           [ ] Description of business activity

ï           [ ] Bank account details

Registration Process:

Online (Preferred):

1.              Go to: taxes.gov.il
2.              Create account or login
3.              Navigate to "Opening a Business"
4.              Fill out form:

◦                    Personal details

◦                    Business activity description

◦                    Expected annual income

◦                    Business address (can be home)

◦                    Bank details

5.              Submit
6.              Receive business number within 1-2 weeks

In Person:

1.        Visit local Tax Authority office
2.        Take number, wait
3.        Meet with clerk
4.        Fill out forms with assistance
5.        Receive temporary documentation
6.        Official number arrives by mail

By Accountant (Recommended):

1.        Hire Israeli accountant
2.        Provide information
3.        They handle registration
4.        Ensures correct setup
5.        Cost: ₪500-1,500 one-time

Step 3: Register with Bituach Leumi (National Insurance)

What is Bituach Leumi:

ï           National Insurance Institute

ï           Provides: health insurance, pension, disability, unemployment, maternity/paternity benefits

ï           Mandatory for all residents

ï           Self-employed pay ~17% of income (varies by income level)

ï           Includes health insurance contribution

Registration:

ï           Often automatic when register with Tax Authority

ï           May need to register separately

ï           Online: btl.gov.il

ï           Required documents: ID, business registration, bank details

ï           Phone: 1-800-012-346

Payment:

ï           Bi-monthly payments

ï           Based on reported income

ï           Minimum payment (even if low income): ~₪1,200/month (~$325)

ï           Can adjust based on projected income

ï           Annual reconciliation

Important:

ï           Cannot avoid this - it's mandatory

ï           Includes health insurance (choose Kupat Cholim)

ï           Covers basic safety net benefits

ï           Part of tax burden calculation

Step 4: Open Business Bank Account

Why Separate Account:

ï           Legal requirement for proper bookkeeping

ï           Separate personal and business finances

ï           Easier accounting

ï           Professional appearance

ï           Credit card processing (if needed)

Options:

Traditional Banks:

ï           Bank Leumi

ï           Bank Hapoalim

ï           Mizrahi Tefahot

ï           Discount Bank

ï           First International Bank

Fees:

ï           Monthly maintenance: ₪30-60 (~$8-16)

ï           Transaction fees: ₪0.50-2 per transaction

ï           International transfer fees: ₪50-150 (~$14-40)

ï           Foreign currency fees: 2-4%

Required Documents:

ï           ID/passport

ï           Business registration documents

ï           Proof of address

ï           Initial deposit (₪500-1,000 typical)

Process:

1.        Call bank for appointment
2.        Meet with business account representative
3.        Bring all documents
4.        Open account (takes 1-2 hours)
5.        Receive temporary checks/card
6.        Full card/online access in 1-2 weeks

Tips:

ï           Shop around - fees vary

ï           Negotiate fees (possible for higher volume)

ï           Ask about foreign currency accounts

ï           Inquire about international transfer options

ï           Check online banking quality

Step 5: Set Up Bookkeeping System

Options:

Excel/Google Sheets (Not Recommended):

ï           Free

ï           Manual entry

ï           Error-prone

ï           Time-consuming

ï           Hard to generate reports

Accounting Software:

Green Invoice (ירוקה חשבונית):

ï           Most popular in Israel

ï           Hebrew interface

ï           Invoicing and bookkeeping

ï           VAT report generation

ï           Cost: ₪60-150/month (~$16-40)

ï           Website: greeninvoice.co.il

Quickbooks:

ï           International standard

ï           English interface

ï           More features

ï           Can connect Israeli bank

ï           Cost: $25-80/month

Wave (Free):

ï           Free for basic features

ï           English interface

ï           Good for starting out

ï           Limited Israeli bank integrations

Israeli-Specific Options:

ï           Heshbonit (חשבונית)

ï           Invoiz

ï           Priority

What You Need to Track:

ï           All income (every payment)

ï           All expenses (business-related)

ï           VAT on invoices (if Osek Murshe)

ï           VAT on expenses (if Osek Murshe)

ï           Client information

ï           Invoice history

ï           Payment status

ï           Bank reconciliation

Step 6: Hire an Accountant (Highly Recommended)

Why You Need an Accountant:

ï           Israeli tax system is complex

ï           VAT reporting requirements

ï           Annual tax return

ï           Optimize tax situation

ï           New immigrant benefits (maximize exemptions)

ï           Bituach Leumi coordination

ï           Avoid penalties

ï           Save time

ï           Peace of mind

What Accountant Does:

ï           Set up proper business structure

ï           Monthly/bi-monthly VAT reports (if Osek Murshe)

ï           Annual income tax return

ï           Bituach Leumi coordination

ï           Tax planning and optimization

ï           Advise on deductions

ï           Handle correspondence with tax authority

ï           Quarterly estimated tax calculations

ï           Year-end financial statements

Cost:

ï           Monthly retainer: ₪200-800 (~$54-216)

ï           Annual tax return: ₪500-1,500 (~$135-405)

ï           Setup/consultation: ₪500-1,500 one-time

ï           Total annual cost: ₪3,000-10,000 (~$810-2,700)

Finding an Accountant:

ï           Ask other freelancers for recommendations

ï           Anglo List (anglo-list.com)

ï           Facebook groups for entrepreneurs/olim

ï           LinkedIn

ï           Local accountant offices

ï           Look for English-speaking if Hebrew limited

Questions to Ask:

ï           Experience with freelancers?

ï           Experience with new immigrants/new resident status?

ï           Experience with your industry?

ï           Monthly retainer cost?

ï           What's included?

ï           Response time?

ï           Online portal access?

ï           References?

Creating Invoices

Invoice Requirements (Israeli Tax Law)

All Invoices Must Include:

ï           [ ] Your business name

ï           [ ] Your business number (Osek Patur or VAT number)

ï           [ ] Your address

ï           [ ] Client name and address

ï           [ ] Invoice number (sequential)

ï           [ ] Invoice date

ï           [ ] Description of services

ï           [ ] Amount in shekels

ï           [ ] VAT amount (if Osek Murshe) - 18%

ï           [ ] Total amount including VAT

ï           [ ] Payment terms

ï           [ ] Bank details (for payment)

For Foreign Clients:

ï           Can invoice in foreign currency

ï           But must report in shekels to tax authority

ï           Use Bank of Israel exchange rate for date of invoice

ï           If Osek Murshe: Export of services = 0% VAT (zero-rated, not exempt)

ï           Note: "Reverse charge mechanism" or "Export of services - VAT 0%"

Invoice Templates

Use:

ï           Green Invoice (automated)

ï           Accounting software templates

ï           Microsoft Word/Google Docs templates

ï           Professional invoice generators

Formatting:

ï           Professional appearance

ï           Clear and organized

ï           Easy to read

ï           Includes all required information

ï           PDF format for sending

Payment Terms

Common Terms:

ï           Net 30 (payment due 30 days after invoice)

ï           Net 15

ï           Payment upon receipt

ï           50% upfront, 50% on completion

ï           Milestone-based (for projects)

Enforcement:

ï           Late payment interest allowed (legally up to ~20% annually)

ï           Specify late payment terms on invoice

ï           Send payment reminders

ï           Be professional but firm

ï           Consider collections if necessary

Managing Client Payments

Payment Methods:

ï           Bank transfer (most common for international)

ï           PayPal

ï           Wise (formerly TransferWise)

ï           Payoneer

ï           Credit card (if have merchant account)

ï           Check (rare for international)

ï           Cryptocurrency (increasingly common)

Tracking:

ï           Mark invoices as paid in system

ï           Reconcile with bank account

ï           Follow up on overdue payments

ï           Keep records for taxes

Finding Clients

**International Platforms: **(See Platforms Section below)

ï           Upwork

ï           Fiverr

ï           Toptal

ï           Freelancer.com

ï           Gun.io (for developers)

ï           And many others...

Direct Outreach:

ï           LinkedIn networking

ï           Cold email campaigns

ï           Personal website/portfolio

ï           Content marketing (blog, YouTube, etc.)

ï           Referrals from past clients

ï           Industry conferences/events

ï           Online communities in your niche

Israeli Market:

ï           AllJobs.co.il

ï           LinkedIn (very active in Israel)

ï           Facebook groups for freelancers

ï           Networking events

ï           Coworking spaces

ï           Professional associations

Building Long-Term Relationships:

ï           Deliver excellent work consistently

ï           Over-communicate

ï           Meet deadlines

ï           Be reliable

ï           Ask for referrals

ï           Maintain relationships between projects

ï           Provide value beyond contracted work

4.   LEGAL AND TAX CONSIDERATIONS

Tax System Overview

Israeli Tax Rates (2025)

Income Tax Brackets:

**Note: **These are marginal rates. You only pay the higher rate on income above each threshold.

Bituach Leumi (National Insurance) - Self-Employed:

ï           ~17% of income (varies by income level)

ï           Includes health insurance, social security, disability, unemployment benefits

ï           Mandatory

ï           Minimum monthly payment even if no income: ~₪1,200 (~$325)

Total Tax Burden Examples (Self-Employed):

**Note: **These are approximations. Actual tax depends on deductions, credits, etc.

NEW RESIDENT STATUS: The Game-Changer for Immigrants

What is New Resident Status?

**Official Name: **חדש תושב / חוזר תושב (Toshav Chozer / Toshav Chadash)

**Definition: **A tax status for new immigrants and returning residents that provides major tax exemptions on foreign-source income for 10 years.

This is potentially the most valuable financial benefit of making aliyah.

Eligibility

You May Qualify If:

ï           You made aliyah (became new immigrant) OR

ï           You are returning resident who was non-resident for at least 6 of the previous 10 years

AND:

ï           You become Israeli tax resident

ï           You file for new resident status with Tax Authority

ï           You meet all requirements

**Key Point: **You must APPLY for this status. It is not automatic. Many olim miss this opportunity by not applying or not knowing it exists.

Benefits

10-Year Exemptions:

1.              Foreign-Source Employment Income:

◦                    Income from employment with foreign company

◦                    Working remotely for US/EU/etc company

◦                    **TAX EXEMPT **in Israel for 10 years

◦                    Save potentially $20,000-$50,000+ annually

2.              Foreign-Source Passive Income:

◦                    Interest from foreign bank accounts

◦                    Dividends from foreign stocks

◦                    Rental income from foreign property

◦                    Capital gains from foreign assets

◦                    **TAX EXEMPT or reduced rates **for 10 years

3.              Foreign Pension Income:

◦                    401(k) distributions

◦                    IRA withdrawals

◦                    Foreign pension payments

◦                    **Favorable treatment **(exempt or reduced tax)

How It Works for Remote Workers Scenario 1: Employee of Foreign Company Without New Resident Status:

ï           Work remotely for US company

ï           Earn $100,000/year

ï           Pay Israeli income tax: ~$22,000

ï           Pay Bituach Leumi: ~$17,000

ï           Total taxes: ~$39,000 (39%) With New Resident Status:

ï           Work remotely for US company

ï           Earn $100,000/year

ï           Pay Israeli income tax: $0 (foreign employment exempt!)

ï           Pay US taxes: ~$5,000 (after Foreign Earned Income Exclusion)

ï           Pay Bituach Leumi: ~$17,000 (still required)

ï           Total taxes: ~$22,000 (22%)

ï           Annual savings: $17,000

ï           10-year savings: $170,000

Scenario 2: Freelancer with Foreign Clients Without New Resident Status:

ï           Freelance for foreign clients

ï           Earn $100,000/year

ï           Pay Israeli income tax: ~$22,000

ï           Pay Bituach Leumi: ~$17,000

ï           Total taxes: ~$39,000 (39%) With New Resident Status:

ï           Freelance for foreign clients

ï           Earn $100,000/year

ï           Pay Israeli income tax: $0 (foreign-source income exempt!)

ï           Pay Bituach Leumi: ~$17,000

ï           Total taxes: ~$17,000 (17%)

ï           Annual savings: $22,000

ï           10-year savings: $220,000

**Important Note: **You still pay Bituach Leumi even with new resident status. But you save ALL income tax on foreign-source income.

Defining "Foreign-Source Income"

Generally Considered Foreign-Source:

ï           Employment with company that has no Israeli entity

ï           Freelance services to foreign clients

ï           Foreign investments/dividends

ï           Foreign rental property income

ï           Work performed outside Israel

Generally Considered Israeli-Source:

ï           Employment with Israeli company

ï           Freelance services to Israeli clients

ï           Israeli real estate income

ï           Israeli investments

ï           Services to Israeli residents (even if paid abroad)

Gray Areas:

ï           Remote work for foreign company but serving Israeli market

ï           Mixed client base (some Israeli, some foreign)

ï           Requires accountant analysis

How to Apply for New Resident Status

When to Apply:

ï           Within your first year in Israel (recommended)

ï           Can apply retroactively but more complex

ï           Earlier is better

Process:

1.              Gather Documents:

◦                    [ ] Proof of aliyah date (Teudat Oleh)

◦                    [ ] Proof of tax residency in previous country

◦                    [ ] Tax returns from previous country

◦                    [ ] Employment contracts/client agreements

◦                    [ ] Documentation of foreign income sources

◦                    [ ] Bank statements showing foreign income

2.              File Form:

◦                    Form: "Request for Determination as New Resident" (1329 טופס)

◦                    Available: Tax Authority website

◦                    Language: Hebrew (need translator or accountant)

◦                    Supporting documentation required

3.              Submit to Tax Authority:

◦                    Local tax office

◦                    Or through accountant

◦                    Keep copy of submission

◦                    Request confirmation

4.              Await Determination:

◦                    Timeline: 2-6 months

◦                    May request additional information

◦                    Follow up regularly

◦                    Accountant handles correspondence

5.              Receive Approval:

◦                    Official determination letter

◦                    Specifies 10-year period

◦                    Details exemptions

◦                    Keep this document forever

Critical: Hire an Accountant

ï           New resident status is complex

ï           Mistakes can cost tens of thousands

ï           Accountant fee: ₪2,000-5,000 (~$540-1,350)

ï           Worth every shekel

ï           Ensures proper application and optimization

Maintaining New Resident Status

Requirements:

ï           Remain Israeli tax resident (183+ days per year in Israel)

ï           File annual Israeli tax returns

ï           Report all income (even if exempt)

ï           Maintain proper documentation

ï           Don't create Israeli-source income accidentally

What Can Void Status:

ï           Moving back to previous country (ending tax residency)

ï           Misrepresenting source of income

ï           Fraud

ï           But minor mistakes usually fixable

After 10 Years:

ï           Status expires

ï           Foreign-source income becomes taxable

ï           Still better than many countries

ï           Can plan accordingly

Tax Residency

Determining Tax Residency

You Are Israeli Tax Resident If:

ï           You are in Israel for 183+ days in a tax year OR

ï           You are in Israel for 30+ days in current year AND 425+ days in current + prior 2 tax years OR

ï           Your "center of life" is in Israel (family, home, economic ties)

Why It Matters:

ï           Tax residents pay Israeli tax on worldwide income

ï           Tax residents can claim new resident status

ï           Tax residents entitled to Israeli tax benefits/credits

ï           Tax residents must file Israeli tax return

Double Taxation

**Potential Issue: **You may be tax resident in TWO countries simultaneously, creating risk of paying tax to both on same income.

Solutions: Tax Treaties:

ï           Israel has tax treaties with ~60 countries (US, UK, Canada, most of Europe)

ï           Treaties prevent double taxation

ï           Specify which country has "primary" right to tax income

ï           Provide credits for taxes paid to other country

Foreign Tax Credit:

ï           If you pay tax in foreign country on income

ï           Can claim credit against Israeli tax on same income

ï           Prevents paying twice

US-Israel Treaty (Common Scenario):

ï           Employment income: Taxed primarily in residence country

ï           If US citizen working for US company from Israel: Can exclude first ~$126,000 from US taxes (Foreign Earned Income Exclusion)

ï           Pay remaining US tax

ï           Credit against Israeli tax (but if new resident, no Israeli tax anyway)

Bottom Line:

ï           You generally don't pay full tax to both countries

ï           Treaties and credits prevent most double taxation

ï           But tax planning essential

ï           Always use accountant for international tax situation

Quarterly Estimated Taxes

Who Needs to Pay:

ï           Self-employed individuals

ï           Anyone not having taxes withheld at source

ï           If you owe more than ₪5,000 in annual tax

Payment Schedule:

ï           First installment: March 31

ï           Second installment: May 31

ï           Third installment: July 31

ï           Fourth installment: November 30

How Much:

ï           Based on expected annual income

ï           Pay approximately equal quarters

ï           Accountant calculates

ï           Can adjust if income varies

Penalties:

ï           Late payment: Interest charges (~4% annually)

ï           Underpayment: Interest on difference

ï           Non-payment: Can result in fines, liens

Coordination with Accountant:

ï           They calculate quarterly amounts

ï           They send payment vouchers

ï           You make payments

ï           Annual reconciliation

Deductible Expenses

What You Can Deduct (Self-Employed)

**General Rule: **Expenses that are "ordinary and necessary" for your business.

Common Deductions:

Office & Equipment:

ï           Computer, laptop, tablet

ï           Software subscriptions

ï           Office furniture

ï           Coworking space membership

ï           Home office expenses (portion of rent, utilities)

ï           Internet and phone (business portion)

Professional Development:

ï           Online courses

ï           Conferences

ï           Books and subscriptions

ï           Professional memberships

Travel:

ï           Business travel (if meeting clients)

ï           Transportation to coworking/meetings

ï           Mileage (if using car for business)

Professional Services:

ï           Accountant fees

ï           Lawyer fees

ï           Web designer/developer

ï           Marketing services

ï           Freelance subcontractors

Marketing:

ï           Website hosting

ï           Business cards

ï           Advertising

ï           Social media ads

ï           SEO services

Other:

ï           Business insurance

ï           Bank fees

ï           Payment processing fees (PayPal, Stripe, etc.)

ï           Office supplies

ï           Client entertainment (partial)

What You CANNOT Deduct

ï           Personal expenses

ï           Clothing (unless specific uniform)

ï           Meals (unless with client)

ï           Personal portion of mixed-use items

ï           Commute to single workplace (if employee)

ï           Life insurance

ï           Health insurance (covered by Bituach Leumi)

ï           Fines and penalties

Record Keeping

Requirements:

ï           Keep ALL receipts (7 years)

ï           Organize by category

ï           Digital scans acceptable

ï           Note business purpose on receipts

ï           Track mileage if claiming vehicle

ï           Bank statements

ï           Invoices (sent and received)

Best Practices:

ï           Photograph receipts immediately

ï           Use accounting software

ï           Monthly reconciliation

ï           Separate business/personal expenses

ï           Document everything

VAT (Value Added Tax)

Rate: **18% (as of 2025) **Who Charges VAT Osek Murshe:

ï           Must charge 18% VAT on all invoices to Israeli clients

ï           Must charge VAT on Israeli-source income

ï           Does NOT charge VAT on exports (0% rate)

Osek Patur:

ï           Does NOT charge VAT

ï           Simpler but cannot deduct input VAT

Exports of Services (0% VAT)

If you provide services to foreign clients:

ï           This is considered "export of services"

ï           Zero-rated for VAT (0%, not exempt)

ï           You charge 0% VAT

ï           You can still deduct input VAT on your expenses

ï           Very beneficial

Requirements to Qualify as Export:

ï           Client is foreign (outside Israel)

ï           Client is not Israeli resident

ï           Payment is in foreign currency or from foreign account

ï           Service is for foreign use

Documentation:

ï           Keep proof of client's foreign status

ï           Invoice showing 0% VAT with note "Export of services"

ï           Bank statement showing foreign payment

ï           Client contract

Input VAT Deduction

If Osek Murshe:

ï           Can deduct VAT you paid on business expenses

ï           Example: Buy computer for ₪5,900 (₪5,000 + 18% VAT)

ï           You paid ₪900 VAT

ï           Can deduct this ₪900 from VAT you owe on your invoices

ï           Or get refund if deductions exceed collections

Common Input VAT:

ï           Office equipment

ï           Software

ï           Coworking spaces

ï           Professional services from Israeli providers

ï           Anything with Israeli VAT receipt for business use

US Tax Obligations (For US Citizens)

Critical: US Citizens Must File US Taxes Regardless of Where They Live

Foreign Earned Income Exclusion (FEIE)

What It Is:

ï           Excludes first ~$126,000 (2025) of foreign earned income from US taxation

ï           Must meet physical presence test or bona fide residence test

ï           File Form 2555 with US tax return

Physical Presence Test:

ï           Be physically outside US for 330 days in 12-month period

ï           Can be any 12-month period

ï           Days in transit count as outside US

Bona Fide Residence Test:

ï           Establish bona fide residence in Israel

ï           For uninterrupted tax year

ï           More subjective but flexible

Effect:

ï           First $126,000 of employment/self-employment income excluded

ï           Income above this: taxed at US rates (but with credits)

ï           Passive income: Not eligible for FEIE

ï           Still pay self-employment tax on first ~$160,200

Foreign Tax Credit

What It Is:

ï           Credit for foreign (Israeli) taxes paid

ï           Prevents double taxation on same income

ï           Form 1116

How It Works:

ï           Calculate US tax on worldwide income

ï           Calculate foreign tax paid on same income

ï           Get credit for foreign tax (up to US tax amount)

ï           Reduces or eliminates US tax

Combined with FEIE:

ï           Use FEIE for earned income up to exclusion

ï           Use Foreign Tax Credit for income above exclusion and passive income

ï           Optimal strategy requires planning

Self-Employment Tax

Issue:

ï           US self-employment tax: 15.3% (Social Security + Medicare)

ï           Applies to self-employment income even if excluded by FEIE

ï           However...

Totalization Agreement:

ï           US-Israel Totalization Agreement

ï           Prevents double social security taxation

ï           If paying Bituach Leumi, exempt from US self-employment tax

ï           File Form 1040 Schedule SE + statement

ï           Keep Certificate of Coverage from Bituach Leumi

Bottom Line:

ï           Pay Bituach Leumi in Israel

ï           Exempt from US self-employment tax

ï           But must document properly

Reporting Requirements

FBAR (FinCEN Form 114):

ï           Report foreign bank accounts if total exceeds $10,000 at any time during year

ï           Includes all Israeli accounts

ï           Filed separately from tax return (FinCEN website)

ï           Due April 15 (automatic extension to October 15)

ï           Severe penalties for non-compliance

FATCA (Form 8938):

ï           Report foreign financial assets if exceed threshold

ï           Thresholds: $200,000 - $600,000 depending on filing status and residence

ï           Filed with tax return

ï           Includes bank accounts, investments, business interests

Foreign Business Reporting:

ï           Form 5471: Foreign corporation control

ï           Form 8865: Foreign partnership interests

ï           Form 8621: PFIC (certain foreign investments)

Penalties:

ï           FBAR non-compliance: Up to $100,000+ per year

ï           FATCA non-compliance: $10,000+ per year

ï           Criminal penalties possible

ï           DO NOT ignore these

US CPA Essential

Why:

ï           US tax law is complex

ï           International issues multiply complexity

ï           FEIE, Foreign Tax Credit optimization

ï           FBAR, FATCA compliance

ï           Penalties are severe

ï           Peace of mind

Finding US CPA:

ï           Must understand US-Israel issues

ï           Many CPAs specialize in expat taxation

ï           Can work remotely

ï           Cost: $500-2,000 for annual return

ï           Worth every penny

5.   SETTING UP YOUR BUSINESS IN ISRAEL

Legal Entity Registration

[Covered in Freelancing Section]

Quick summary:

ï           Osek Patur for income < ₪100K

ï           Osek Murshe for income > ₪100K or Israeli clients

ï           Company (Ltd) only if very high income or special circumstances

Business Name

Choosing a Name

Requirements:

ï           Can use your personal name

ï           Can choose a business name ("Shem Iska")

ï           Business name must be unique in your field

ï           Check availability with Registrar of Companies

Registering Business Name:

ï           Optional for sole proprietors

ï           Required if want legal protection

ï           File with Registrar of Companies

ï           Cost: ₪80 (~$22)

ï           Protects name in your industry

Business Address

Options:

1.              Home Address:

◦                    Simplest

◦                    Free

◦                    Privacy concern (public record)

◦                    Landlord permission if renting

2.              Coworking Space:

◦                    Professional address

◦                    Mail handling

◦                    Business services

◦                    Cost: ₪500-2,000/month (~$135-540)

3.              Virtual Office:

◦                    Address only (no physical space)

◦                    Mail forwarding

◦                    Professional appearance

◦                    Cost: ₪200-500/month (~$54-135)

4.              Accountant's Office:

◦                    Some accountants offer address service

◦                    Convenient for mail

◦                    Professional

Insurance

Professional Liability Insurance

What It Covers:

ï           Errors and omissions

ï           Professional negligence

ï           Client lawsuits

ï           Defense costs

Who Needs It:

ï           Consultants

ï           Designers

ï           Developers

ï           Anyone giving professional advice

ï           Often required by clients

**Cost: **₪2,000-10,000/year (~$540-2,700) depending on coverage and field

General Liability Insurance

What It Covers:

ï           Bodily injury

ï           Property damage

ï           Personal injury (libel, slander)

Who Needs It:

ï           Less critical for remote workers

ï           Important if clients visit your office

ï           Some clients may require

**Cost: **₪1,000-5,000/year (~$270-1,350)

Health Insurance

Coverage:

ï           Included through Bituach Leumi

ï           Choose Kupat Cholim (Clalit, Maccabi, Meuhedet, Leumit)

ï           Comprehensive coverage

ï           Very affordable compared to US

Supplemental:

ï           Optional private insurance for extras

ï           Cost: ₪100-300/month (~$27-81)

ï           Covers: private hospital rooms, alternative medicine, dental (partial)

Disability Insurance

Coverage:

ï           Partial coverage through Bituach Leumi

ï           Additional private insurance recommended

ï           Replaces income if unable to work

**Cost: **₪100-500/month (~$27-135) depending on coverage

Life Insurance (Optional)

When Needed:

ï           If you have dependents

ï           Mortgage

ï           Business loans

**Cost: **Varies by age, health, coverage

Licenses and Permits

**Good News: **Most remote work requires NO special licenses or permits in Israel.

Exceptions:

ï           Medical professionals: License required even for telemedicine

ï           Lawyers: License only if practicing Israeli law or appearing in Israeli courts

ï           Financial advisors: License if advising Israeli residents

ï           Tour guides: License required

ï           Real estate agents: License required

ï           Food-related businesses: Health permits

For most remote work (tech, design, writing, consulting, etc.):

ï           No license required

ï           Just register as self-employed

ï           Can start working immediately

6.   PAYMENT METHODS AND BANKING

Israeli Banking for Freelancers

Opening a Business Account

Required Documents:

ï           [ ] ID (Teudat Zehut) or passport

ï           [ ] Business registration (Osek Patur/Murshe certificate)

ï           [ ] Proof of address

ï           [ ] Initial deposit

Process:

1.        Schedule appointment at bank
2.        Bring all documents
3.        Meet with business banking representative
4.        Complete forms (mostly in Hebrew)
5.        Deposit initial amount
6.        Receive temporary card
7.        Full access in 1-2 weeks

**Timeline: **1-2 weeks for full activation

Bank Options

Major Israeli Banks:

Bank Leumi (לאומי):

ï           Largest bank

ï           Good international services

ï           English-speaking staff available

ï           Higher fees

Bank Hapoalim (הפועלים):

ï           Second largest

ï           Good digital banking

ï           International wire transfers

ï           Moderate fees

Mizrahi-Tefahot (טפחות-מזרחי):

ï           Religious-friendly (closed Shabbat)

ï           Good service

ï           Moderate fees

Discount Bank (דיסקונט):

ï           Lower fees

ï           Adequate services

ï           Less international experience

First International Bank (FIBI):

ï           Popular with Anglo immigrants

ï           English-speaking staff

ï           Higher fees

Bank Yahav (יהב):

ï           Owned by National Insurance Institute

ï           Sometimes better for self-employed

ï           Good rates

Banking Fees

Typical Costs:

ï           Monthly maintenance: ₪30-80 (~$8-22)

ï           Per transaction: ₪0.50-2 (~$0.14-0.54)

ï           International wire: ₪50-150 (~$14-40)

ï           Foreign currency conversion: 2-4%

ï           ATM fees (other banks): ₪2-5 (~$0.54-1.35)

Negotiation:

ï           Fees are often negotiable

ï           Higher balances = better rates

ï           Business account fees more flexible

ï           Ask for better terms

Foreign Currency Accounts

**Options: **Some Israeli banks offer multi-currency accounts:

ï           Hold USD, EUR, GBP

ï           Reduce conversion frequency

ï           Lower conversion costs

ï           Easier for international payments

Availability:

ï           Not all banks offer

ï           May require minimum balance

ï           Higher fees

ï           Worth it if significant foreign income

International Payment Solutions

Wire Transfers

Receiving International Wires:

Process:

1.        Client sends wire to your Israeli account
2.        Bank receives wire
3.        Converts to shekels (unless foreign currency account)
4.        Credits your account
5.        You receive email notification

Details Needed:

ï           Bank name

ï           Bank SWIFT code

ï           Branch number

ï           Account number

ï           IBAN (if requested)

ï           Your full name (as on account)

Costs:

ï           Receiving fee: ₪50-100 (~$14-27)

ï           Conversion fee: 2-4% of amount

ï           Correspondent bank fees: $10-50 (sometimes)

Timeline:

ï           Standard: 2-5 business days

ï           Express: Same or next business day (higher fee)

Issues:

ï           Banks may hold for verification

ï           Large amounts trigger scrutiny

ï           Must provide invoice/explanation if asked

ï           Patience required

PayPal

Pros:

ï           Widely accepted

ï           Easy for clients

ï           Fast transfers

ï           Buyer/seller protection

Cons:

ï           High fees (3-5% + conversion)

ï           Holds possible

ï           Account freezes happen

ï           Difficult customer service

Israel Specifics:

ï           Can send and receive money

ï           Can withdraw to Israeli bank

ï           Available in shekels

ï           Conversion fees apply

Fees:

ï           Transaction: 2.9% + $0.30 (for sales)

ï           Currency conversion: 3-4%

ï           Withdrawal to bank: Free (but conversion fee)

Tips:

ï           Keep balance low (hold risk)

ï           Transfer to bank regularly

ï           Have backup payment method

ï           Document all transactions

Wise (TransferWise)

Pros:

ï           Low fees (0.5-1%)

ï           Real exchange rates

ï           Fast transfers

ï           Multi-currency accounts

ï           Business accounts available

Cons:

ï           Not as widely known

ï           Some clients unfamiliar

ï           Not for all countries

How It Works:

1.        Client sends payment to Wise
2.        Wise converts at mid-market rate
3.        Sends to your bank account
4.        Low, transparent fees

Cost:

ï           Transfer fee: 0.5-1% of amount

ï           Much cheaper than banks or PayPal

Highly Recommended for:

ï           Regular international payments

ï           US/EU clients

ï           Minimizing fees

Setup:

ï           Create business account

ï           Verify identity

ï           Link bank account

ï           Receive payments

Israeli Banking:

ï           Can receive in shekels or foreign currencies

ï           Transfer to Israeli bank

ï           Very cost-effective

Payoneer

Pros:

ï           Popular for freelancers

ï           Integrates with many platforms

ï           Multi-currency accounts

ï           Prepaid Mastercard

ï           Receiving accounts in multiple countries

Cons:

ï           Fees higher than Wise

ï           Some complexity

ï           Customer service variable

Features:

ï           Virtual bank accounts (US, EU, UK)

ï           Receive payments like a local

ï           Withdraw to Israeli bank

ï           Integration with Upwork, Fiverr, etc.

Fees:

ï           Receiving from client: 0-1%

ï           Withdrawal to bank: $1-2 per transaction

ï           Currency conversion: 2-3%

Good For:

ï           Freelance platforms

ï           Multiple currencies

ï           US/EU clients

Cryptocurrency

Increasing Popularity:

ï           Some clients pay in Bitcoin, Ethereum, USDT

ï           Fast, borderless transfers

ï           Lower fees than banks

ï           Privacy

Israel Specifics:

ï           Legal to receive crypto payments

ï           Must report as income (convert to shekels at receipt)

ï           Growing ecosystem

ï           Several Israeli exchanges

Tax Treatment:

ï           Crypto payments are income (taxable)

ï           Use exchange rate on date received

ï           Capital gains if holding (not applicable for immediate conversion)

Israeli Exchanges:

ï           Bit2C

ï           Bits of Gold

ï           CEX.io Israel

Caution:

ï           Volatility

ï           Complex tax reporting

ï           Not all clients willing

ï           Need to convert to shekels for expenses

Managing Multiple Currencies

Strategies:

1.              Keep Foreign Currency Account:

◦                    Hold USD/EUR/GBP

◦                    Convert in batches when rate favorable

◦                    Reduces frequent conversion fees

2.              Use Wise/Payoneer:

◦                    Multi-currency balance

◦                    Convert when needed

◦                    Good rates

3.              Timing Conversions:

◦                    Monitor exchange rates

◦                    Convert larger amounts when favorable

◦                    Don't try to time perfectly (impossible)

◦                    Regular conversions for budgeting

4.              Hedge Currency Risk:

◦                    Keep 3-6 months expenses in shekels

◦                    Don't hold too much foreign currency

◦                    Balance stability vs. gains

Invoice Currency

Options:

Invoice in Foreign Currency (USD, EUR, etc.):

ï           Pros: Client pays easily, familiar currency, you receive full amount

ï           Cons: You bear conversion risk, must convert for expenses

Invoice in Shekels:

ï           Pros: Clear amount, no conversion on your end, simpler accounting

ï           Cons: Client bears conversion costs, may seem unusual

Best Practice:

ï           Foreign clients: Invoice in their currency (usually USD/EUR)

ï           Israeli clients: Invoice in shekels

ï           Makes payment easier for client

ï           You handle conversion

Tax Reporting

Remember:

ï           All foreign income must be reported to Israeli tax authority

ï           Convert to shekels using Bank of Israel rate on date received

ï           Keep records of all foreign currency conversions

ï           Accountant handles this, but you provide data

7.   INDUSTRIES AND OPPORTUNITIES

High-Demand Remote Work Fields

Technology and Software Development

Opportunities:

ï           Full-stack development

ï           Frontend/backend development

ï           Mobile app development (iOS, Android)

ï           DevOps and cloud architecture

ï           Cybersecurity

ï           Data science and machine learning

ï           Quality assurance/testing

ï           Blockchain development

ï           Game development

Why High Demand:

ï           Global shortage of developers

ï           Remote-friendly industry

ï           High pay

ï           Israel's tech reputation

ï           Strong startup ecosystem

Typical Rates:

ï           Junior: $30-60/hour

ï           Mid-level: $60-100/hour

ï           Senior: $100-200+/hour

Platforms:

ï           Toptal (highly selective)

ï           Gun.io

ï           Upwork

ï           Freelancer

ï           Direct client outreach

Design and Creative

Opportunities:

ï           UX/UI design

ï           Graphic design

ï           Web design

ï           Brand identity

ï           Illustration

ï           Animation

ï           Video editing

ï           Motion graphics

ï           3D modeling

Typical Rates:

ï           Entry level: $25-50/hour

ï           Experienced: $50-100/hour

ï           Expert: $100-200+/hour

Platforms:

ï           Dribbble

ï           Behance

ï           99designs

ï           Upwork

ï           Fiverr

ï           Direct client work

Writing and Content

Opportunities:

ï           Content writing

ï           Copywriting

ï           Technical writing

ï           Blog writing

ï           SEO content

ï           Email marketing

ï           Social media content

ï           Ghostwriting

ï           Editing and proofreading

ï           Translation

Typical Rates:

ï           Per word: $0.03-0.25+

ï           Per article: $50-500+

ï           Per project: $500-5,000+

ï           Ongoing retainers: $1,000-10,000+/month

Platforms:

ï           Contently

ï           Scripted

ï           Upwork

ï           ProBlogger job board

ï           Direct pitching to companies

Marketing and Growth

Opportunities:

ï           Digital marketing

ï           SEO specialist

ï           Social media management

ï           Email marketing

ï           Content marketing

ï           PPC advertising (Google Ads, Facebook Ads)

ï           Marketing strategy

ï           Growth hacking

ï           Analytics and reporting

Typical Rates:

ï           Entry: $30-60/hour

ï           Experienced: $60-120/hour

ï           Expert: $120-250+/hour

ï           Retainers: $1,000-10,000+/month

Platforms:

ï           Upwork

ï           LinkedIn

ï           Marketing agencies (subcontracting)

ï           Direct client acquisition

Consulting and Coaching

Opportunities:

ï           Business consulting

ï           Management consulting

ï           Career coaching

ï           Life coaching

ï           Financial planning/advice

ï           HR consulting

ï           Operations consulting

ï           Strategy consulting

Typical Rates:

ï           $100-500+/hour depending on expertise

ï           Package deals: $5,000-50,000+

ï           Retainers: $2,000-20,000+/month

Building This:

ï           Requires established expertise

ï           Build personal brand

ï           Content marketing

ï           Networking

ï           Referrals crucial

Virtual Assistance and Admin

Opportunities:

ï           Executive assistant

ï           Administrative support

ï           Customer service

ï           Data entry

ï           Email management

ï           Calendar management

ï           Travel planning

ï           Research

Typical Rates:

ï           $15-40/hour

ï           Full-time retainers: $2,000-6,000/month

Platforms:

ï           Belay

ï           Time Etc

ï           Fancy Hands

ï           Upwork

ï           Direct to entrepreneurs

Education and Tutoring

Opportunities:

ï           Online tutoring (academic subjects)

ï           Language teaching (especially English)

ï           Test prep (SAT, GRE, GMAT, etc.)

ï           Music lessons

ï           Coding bootcamp instruction

ï           Corporate training

Typical Rates:

ï           $20-80/hour depending on subject

ï           Group classes: Higher effective rate

ï           Corporate training: $100-500+/hour

Platforms:

ï           VIPKid (teaching English to Chinese children)

ï           Cambly

ï           iTalki

ï           Preply

ï           Outschool

ï           Direct student acquisition

Israeli Market:

ï           High demand for English tutors

ï           Test prep popular (SAT, GMAT)

ï           Hebrew speakers teaching Hebrew online

Finance and Accounting

Opportunities:

ï           Bookkeeping

ï           Financial analysis

ï           Accounting (for foreign companies)

ï           CFO services

ï           Tax preparation (for home country)

ï           Financial modeling

ï           Investment research

Typical Rates:

ï           Bookkeeping: $30-80/hour

ï           CFO services: $100-300/hour

ï           Tax prep: $500-5,000/return

Requirements:

ï           Often need certifications from home country

ï           Israeli CPA license NOT needed for foreign clients

ï           Strong track record essential

Legal Services

Opportunities:

ï           Contract review/drafting

ï           Legal research

ï           Immigration law

ï           Compliance

ï           IP law

ï           Corporate law support

Requirements:

ï           Law degree and bar admission (home country)

ï           Israeli bar NOT required for non-Israeli law

ï           Cannot practice Israeli law without Israeli license

ï           Cannot appear in Israeli courts without license

Typical Rates:

ï           $100-500+/hour depending on specialty

Israeli Market Opportunities

Hebrew Language Work

If You Speak Hebrew:

ï           Broader Israeli market access

ï           Higher-paying Israeli clients

ï           Startups and tech companies

ï           Israeli-international bridge roles

ï           Hebrew content creation

ï           Hebrew-English translation

Learning Hebrew:

ï           Essential for full Israeli market access

ï           Ulpan programs available

ï           Online resources

ï           Immersion

ï           Takes 1-3 years for professional fluency

Tech Sector

Israel's Startup Nation:

ï           Thriving startup ecosystem

ï           Many companies hire remote

ï           International companies with Israeli offices

ï           High salaries (though lower than US)

ï           Opportunity for equity

ï           English widely used in tech

Breaking In:

ï           LinkedIn very active

ï           Networking events

ï           Startup job boards (alljobs.co.il)

ï           Referrals critical

ï           Technical skills more important than Hebrew

8.   PLATFORMS AND FINDING WORK

Major Freelance Platforms

Upwork

Overview:

ï           Largest freelance platform

ï           Wide range of categories

ï           Connect-based system (you "buy" connects to bid on jobs)

Pros:

ï           Huge client base

ï           Payment protection

ï           Dispute resolution

ï           Escrow system

ï           Diverse projects

Cons:

ï           High competition

ï           Platform fees (5-20% depending on earnings)

ï           Race to bottom on rates (sometimes)

ï           Connect costs add up

Fees:

ï           10% on first $500 with client

ï           5% on $500-10,000

ï           3% on $10,000+

ï           Connect costs: $0.15 per connect, 1-16 connects per bid

Tips:

ï           Build strong profile

ï           Niche specialization

ï           Start with lower rates to build reviews

ï           Excellent proposals essential

ï           Overdeliver initially

Fiverr

Overview:

ï           Gig-based platform

ï           You create service "packages"

ï           Clients buy your services

Pros:

ï           Passive client acquisition

ï           No bidding

ï           Build portfolio

ï           Level system rewards performance

ï           Lower starting barrier

Cons:

ï           20% platform fee (high!)

ï           Race to bottom pricing

ï           "Gig" economy perception

ï           Hard to stand out

Fees:

ï           20% on all earnings

ï           Additional fees for withdrawals

Tips:

ï           Price competitively initially

ï           Excellent service to level up

ï           Upsell higher packages

ï           Focus on delivery quality

ï           Ask for reviews

Toptal

Overview:

ï           Elite freelancer network

ï           Selective screening (only top 3% accepted)

ï           Higher-paying clients

ï           Tech and design focus

Pros:

ï           Premium rates

ï           Quality clients

ï           Ongoing work

ï           Support and benefits

ï           No bidding

Cons:

ï           Difficult to get accepted

ï           Competition among top freelancers

ï           Requires expertise and experience

ï           Tech/design/finance focused

Application:

ï           Submit portfolio

ï           Multiple screening stages

ï           Technical test

ï           Live project test

ï           Interview

Freelancer.com

Overview:

ï           Large freelance marketplace

ï           Contest-based and fixed projects

ï           Similar to Upwork

Pros:

ï           Large client base

ï           Various project types

ï           International clients

Cons:

ï           Very competitive

ï           Many low-quality projects

ï           Fee structure complex

ï           Race to bottom pricing

Industry-Specific Platforms

For Developers:

ï           Gun.io

ï           Gigster

ï           Codementor

ï           GitHub Jobs

For Designers:

ï           Dribbble Pro

ï           Behance

ï           99designs

ï           DesignCrowd

For Writers:

ï           Contently

ï           Scripted

ï           WriterAccess

ï           ProBlogger Job Board

For Marketers:

ï           Growth Collective

ï           MarketerHire

ï           Upwork (has strong marketing category)

Israeli Job Boards

AllJobs (העבודה כל) Website: **alljobs.co.il **Overview:

ï           Main Israeli job board

ï           Tech jobs plentiful

ï           Hebrew and English listings

ï           Remote work section growing

Drushim (דרושים) Website: **drushim.co.il **Overview:

ï           Large job board

ï           Wide range of industries

ï           Mostly Hebrew

LinkedIn

Very Active in Israel:

ï           Most professionals use it

ï           Recruitment heavily done through LinkedIn

ï           Networking essential

ï           English common in tech sector

Tips:

ï           Complete, professional profile

ï           Hebrew version helpful

ï           Active engagement

ï           Build connections

ï           Share content in your field

Direct Client Acquisition

Building Your Personal Brand

Website/Portfolio:

ï           Essential for credibility

ï           Showcase best work

ï           Client testimonials

ï           Clear services and rates

ï           Contact information

ï           Blog/content (optional but helpful)

Content Marketing:

ï           Blog about your expertise

ï           YouTube channel

ï           Podcast

ï           Social media (LinkedIn, Twitter, Instagram)

ï           Build authority

ï           Attracts inbound clients

Social Media:

ï           LinkedIn (professional)

ï           Twitter (tech, writing)

ï           Instagram (design, creative)

ï           TikTok (growing for business)

ï           Be consistent

ï           Provide value

ï           Engage authentically

Networking

Online:

ï           LinkedIn connections

ï           Industry Slack/Discord groups

ï           Reddit communities

ï           Facebook groups

ï           Twitter engagement

Offline (in Israel):

ï           Coworking spaces

ï           Tech meetups

ï           Industry conferences

ï           Startup events

ï           Networking events for olim

ï           Professional associations

Cold Outreach

Email Outreach:

ï           Identify ideal clients

ï           Research their needs

ï           Personalized emails

ï           Offer value first

ï           Clear call to action

ï           Follow up

LinkedIn Outreach:

ï           Connect with potential clients

ï           Personalized connection requests

ï           Build relationship before pitching

ï           Offer help/advice

ï           Eventually propose collaboration

Tips:

ï           Quality over quantity

ï           Personalization crucial

ï           Don't spam

ï           Build relationships

ï           Patience required

Referrals

Most Valuable Source:

ï           Past clients

ï           Professional network

ï           Friends and family

ï           Other freelancers

ï           Reciprocal referrals

Encouraging Referrals:

ï           Excellent work (obvious but critical)

ï           Ask explicitly for referrals

ï           Make it easy (referral link, form)

ï           Offer incentive (discount, commission)

ï           Thank and acknowledge

ï           Follow up with referrals promptly

9.   PRACTICAL SETUP AND INFRASTRUCTURE

Internet and Connectivity

ISP Options in Israel

Major Providers:

ï           Bezeq (בזק) - National telecom

ï           HOT

ï           Cellcom

ï           Partner

ï           012 (Formerly Netvision)

Typical Speeds:

ï           Basic: 100 Mbps

ï           Standard: 200-500 Mbps

ï           High-end: 1 Gbps (fiber)

Costs:

ï           Basic (100 Mbps): ₪80-120/month (~$22-32)

ï           Fast (500 Mbps): ₪120-180/month (~$32-49)

ï           Fiber (1 Gbps): ₪150-250/month (~$40-68)

Reliability:

ï           Generally excellent

ï           Infrastructure strong

ï           Fiber expanding

ï           Rare outages

Setup:

ï           Call provider for installation

ï           Technician visit required

ï           Installation fee: ₪50-200 (~$14-54)

ï           Takes 1-2 weeks from order

Backup Internet

Critical for Remote Work:

ï           Primary internet fails occasionally

ï           Need immediate backup

ï           Cannot afford downtime

Options:

Mobile Hotspot:

ï           Use your smartphone

ï           Israeli mobile data fast and reliable

ï           Unlimited plans available

ï           Cost: Included in phone plan (₪50-100/month)

Secondary ISP:

ï           Different provider from primary

ï           Unlikely both fail simultaneously

ï           Cost: ₪80-150/month

ï           Worthwhile for critical work

Coworking Space:

ï           Backup workspace with internet

ï           Professional environment

ï           Networking bonus

Mobile Phone Service

Providers:

ï           Golan Telecom (cheapest)

ï           Rami Levy Mobile

ï           Hot Mobile

ï           Cellcom

ï           Partner

ï           Pelephone

Plans:

ï           Unlimited calls/SMS: ₪40-80/month (~$11-22)

ï           Unlimited data: ₪60-120/month (~$16-32)

ï           Israel has VERY cheap mobile service

Recommendation:

ï           Get unlimited data plan

ï           Use as backup internet

ï           Enables mobile work (cafes, parks, etc.)

Workspace Options

Home Office

Pros:

ï           Free (except furniture/equipment)

ï           Flexible hours

ï           No commute

ï           Comfortable

ï           Can deduct portion of rent/utilities

Cons:

ï           Isolation

ï           Distractions (family, etc.)

ï           No separation work/life

ï           Space constraints in Israeli apartments

ï           Professional appearance challenges (video calls)

Setup:

ï           Dedicated workspace essential

ï           Good desk and chair

ï           Proper lighting

ï           Quiet area

ï           Professional background for video calls

ï           Good internet

Tax Deductions:

ï           Can deduct portion of rent/utilities

ï           Percentage based on space used exclusively for work

ï           Keep records

ï           Accountant calculates

Coworking Spaces

Popular Chains:

ï           WeWork (locations in Tel Aviv, Jerusalem, Herzliya)

ï           Regus/Spaces

ï           LABS

ï           Mixer

ï           Terminal X

ï           Many independent spaces

Costs:

ï           Hot desk (flexible): ₪800-1,500/month (~$216-405)

ï           Dedicated desk: ₪1,200-2,500/month (~$324-675)

ï           Private office: ₪3,000-8,000+/month (~$810-2,160+)

ï           Day passes: ₪50-150/day (~$14-40)

Benefits:

ï           Professional environment

ï           Networking

ï           Separation from home

ï           Meeting rooms

ï           Mail handling

ï           Coffee and amenities

ï           Community events

ï           Backup internet

Tax Deduction:

ï           Fully deductible business expense

ï           Keep receipts

Cafes

Israeli Cafe Culture:

ï           Many people work from cafes

ï           Generally tolerated if you buy drinks

ï           Good wifi usually

ï           Social atmosphere

Pros:

ï           Variety of locations

ï           Social environment

ï           Coffee and food available

ï           Inspiring atmosphere

ï           Low cost

Cons:

ï           Noise

ï           Unreliable wifi sometimes

ï           Limited power outlets

ï           Pressure to buy drinks

ï           Not for confidential work

ï           Can't take all video calls

Etiquette:

ï           Buy drinks regularly

ï           Don't overstay if crowded

ï           Be respectful of space

ï           Tip well

Equipment and Software

Essential Equipment

Computer:

ï           Laptop or desktop

ï           Specifications depend on work

ï           Budget: $800-2,500+

ï           Consider: Portability, power, reliability

Monitor (Optional but Recommended):

ï           Increase productivity

ï           Easier on eyes

ï           24-27 inches ideal

ï           Cost: $150-500

Keyboard and Mouse:

ï           Ergonomic options

ï           External keyboard for laptop users

ï           Cost: $50-200

Webcam:

ï           If laptop camera insufficient

ï           1080p minimum

ï           Cost: $50-150

Microphone:

ï           Good audio crucial for calls

ï           USB microphone or headset

ï           Cost: $50-200

Headphones:

ï           Noise-canceling ideal

ï           Important for noisy environments

ï           Cost: $100-350

Desk and Chair:

ï           Ergonomic chair essential

ï           Proper desk height

ï           Cost: $200-1,000+

Where to Buy in Israel:

ï           KSP

ï           Bug

ï           Ivory

ï           Amazon (ships to Israel)

ï           Facebook Marketplace (used)

Software

Essential:

Communication:

ï           Zoom (video calls)

ï           Slack (team chat)

ï           Microsoft Teams

ï           Google Meet

Project Management:

ï           Trello

ï           Asana

ï           Monday.com (Israeli company!)

ï           ClickUp

Time Tracking:

ï           Toggl

ï           Harvest

ï           RescueTime

ï           Clockify

Accounting:

ï           Green Invoice (Israel-specific)

ï           Quickbooks

ï           Wave

File Storage:

ï           Google Drive

ï           Dropbox

ï           OneDrive

ï           iCloud

Productivity:

ï           Notion

ï           Evernote

ï           Todoist

ï           Calendar apps

Industry-Specific:

ï           Design: Adobe Creative Cloud, Figma, Sketch

ï           Development: GitHub, IDEs, dev tools

ï           Writing: Grammarly, Hemingway

ï           Marketing: SEMrush, Ahrefs, Hootsuite

Time Management

Dealing with Time Zones

Israel Time Zones:

ï           Israel is UTC+2 (winter) or UTC+3 (summer - no DST since 2013)

ï           Ahead of US East Coast by 7 hours

ï           Ahead of US West Coast by 10 hours

ï           Ahead of UK by 2 hours

ï           Ahead of Central Europe by 1 hour

ï           Behind Asia-Pacific (good for Australia/NZ, challenging for East Asia)

Working with US Clients:

East Coast (EST/EDT):

ï           Israel 9am = US 2am/1am

ï           Israel 6pm = US 11am/10am

ï           Overlap: Late afternoon Israel = Morning US

West Coast (PST/PDT):

ï           Israel 9am = US 11pm/10pm (previous day)

ï           Israel 9pm = US 12pm/11am

ï           Overlap: Evening/night Israel = Daytime US

Strategies:

ï           Flexible schedule (work some US hours)

ï           Core overlap hours (e.g., 5pm-9pm Israel = 10am-2pm US East)

ï           Asynchronous communication

ï           Record meetings for different time zones

ï           Clear expectations on availability

ï           Use scheduling tools (Calendly)

Working with European Clients:

ï           Easier time zone alignment

ï           1-2 hour difference

ï           Normal working hours overlap

ï           Real-time collaboration easier

Working with Asian Clients:

ï           Challenging for East Asia

ï           Better for Australia/NZ (Israel is ahead by 7-9 hours)

ï           May require early morning Israel calls

ï           Asynchronous work important

Scheduling Tools

Calendly:

ï           Share availability

ï           Clients book directly

ï           Syncs with your calendar

ï           Prevents back-and-forth

Google Calendar:

ï           Share calendars with clients/team

ï           Multiple time zone display

ï           Reminders and notifications

World Time Buddy:

ï           Compare time zones easily

ï           Schedule across zones

Professional Development

Staying Current

Online Learning:

ï           Coursera

ï           Udemy

ï           LinkedIn Learning

ï           Skillshare

ï           Industry-specific courses

Certifications:

ï           Relevant to your field

ï           Can command higher rates

ï           Shows commitment to excellence

Networking:

ï           Online communities

ï           Local meetups (Israel has many!)

ï           Industry conferences (virtual or in-person)

Tax Deductible:

ï           Courses, certifications, conferences

ï           Professional development

ï           Keep receipts

10.   CHALLENGES AND SOLUTIONS

Common Challenges

Challenge: Isolation and Loneliness

Why It Happens:

ï           Working alone from home

ï           No colleagues

ï           Independent nature of freelancing

ï           New country (for olim)

ï           Missing social interaction

Solutions:

ï           Coworking spaces (built-in community)

ï           Join local communities:

◦           Meetup groups

◦           Facebook groups for remote workers/freelancers

◦           Professional associations

◦           Hobby groups

ï           Schedule regular social activities

ï           Virtual coworking (work "together" on video)

ï           Take classes, join gym, volunteer

ï           Find accountability partners

ï           Work from cafes occasionally

ï           Attend networking events

Challenge: Irregular Income

Why It Happens:

ï           Project-based work

ï           Clients delayed payments

ï           Seasonal fluctuations

ï           Losing clients

Solutions:

ï           Build emergency fund (6-12 months expenses)

ï           Diversify clients (don't rely on one)

ï           Retainer agreements (monthly recurring income)

ï           Mix of large and small projects

ï           Budget conservatively

ï           Side income streams

ï           Build consistent pipeline of work

ï           Over-save when income is good

ï           Separate business account with buffer

Challenge: Work-Life Balance

Why It Happens:

ï           No clear "end" to workday

ï           Home is workplace

ï           Always accessible

ï           Hard to "turn off"

ï           Pressure to always be working

Solutions:

ï           Set clear working hours

ï           Have dedicated workspace

ï           "Commute" ritual (walk before/after work)

ï           Use separate devices (work computer/personal computer)

ï           Set boundaries with clients (response times)

ï           Schedule non-work activities

ï           Weekend disconnect

ï           Vacation time (plan and take it!)

ï           Say no to unreasonable requests

Challenge: Client Management

Issues:

ï           Scope creep

ï           Difficult clients

ï           Late payments

ï           Unclear expectations

ï           Communication problems

Solutions:

ï           Clear contracts/agreements

ï           Detailed project scopes

ï           Regular communication

ï           Set boundaries early

ï           Manage expectations

ï           Document everything

ï           Payment terms in writing

ï           Don't be afraid to fire bad clients

ï           Build buffer into estimates

ï           Learn to say no

Challenge: Self-Discipline

Why It's Hard:

ï           No boss

ï           No fixed schedule

ï           Distractions at home

ï           Procrastination

ï           Lack of accountability

Solutions:

ï           Set schedule and stick to it

ï           Use time-blocking

ï           Pomodoro technique

ï           Accountability partner

ï           Track time/productivity

ï           Create routines

ï           Dress for work (even at home)

ï           Remove distractions

ï           Use productivity apps

ï           Regular breaks

ï           Reward accomplishments

Challenge: Imposter Syndrome

Common Among Freelancers:

ï           "Am I good enough?"

ï           "Why would they hire me?"

ï           Fear of failure

ï           Comparison to others

Solutions:

ï           Track accomplishments

ï           Collect testimonials

ï           Remember: You're hired because you're qualified

ï           Everyone starts somewhere

ï           Focus on delivering value

ï           Continuous learning

ï           Mentorship

ï           Celebrate wins

ï           Challenge negative thoughts

Challenge: Hebrew Bureaucracy

Reality:

ï           Israeli bureaucracy is complex

ï           Much in Hebrew only

ï           Can be frustrating

ï           Different cultural norms

Solutions:

ï           Hire accountant (worth it!)

ï           Join olim support groups

ï           Ask other freelancers for help

ï           Be patient

ï           Learn basic Hebrew

ï           Bring Hebrew-speaking friend to appointments

ï           Use Google Translate

ï           Nefesh B'Nefesh resources

ï           Ministry of Aliyah support

ï           Accept it's part of living here

Long-Term Sustainability

Avoiding Burnout

Warning Signs:

ï           Exhaustion

ï           Cynicism about work

ï           Reduced productivity

ï           Physical symptoms

ï           Dreading work

Prevention:

ï           Sustainable workload

ï           Regular breaks

ï           Vacation time

ï           Healthy work-life balance

ï           Physical exercise

ï           Social connections

ï           Hobbies outside work

ï           Therapy/counseling if needed

ï           Say no to overcommitment

Career Progression

Freelancing Can Lead To:

ï           Higher rates over time

ï           Specialization

ï           Building agency (hiring others)

ï           Product creation (courses, tools, templates)

ï           Transition to full-time employment

ï           Starting a company

ï           Consulting/coaching

ï           Passive income streams

Invest In:

ï           Skills development

ï           Professional network

ï           Personal brand

ï           Client relationships

ï           Business systems

ï           Long-term planning

11.   RESOURCES AND SUPPORT

Government Resources

Ministry of Aliyah and Integration:

ï           Website: www.gov.il/en/departments/ministry_of_aliyah_and_immigrant_absorption

ï           Phone: 1-700-700-750

ï           Services: Information, benefits, support for olim

ï           Professional integration programs

ï           Hebrew classes (ulpan)

Tax Authority:

ï           Website: taxes.gov.il

ï           Phone: *4954 (from Israel)

ï           Business registration

ï           Tax questions

ï           Forms and guides

Bituach Leumi:

ï           Website: btl.gov.il

ï           Phone: 1-800-012-346

ï           Self-employment registration

ï           Benefits information

ï           Payment queries

Organizations for Olim

Nefesh B'Nefesh (North America):

ï           Website: nbn.org.il

ï           Phone: 02-590-2600 (Israel), 1-866-4-ALIYAH (US/Canada)

ï           Services:

◦           Professional licensing assistance

◦           Employment guidance

◦           Financial counseling

◦           Community connections

◦           Facebook groups

◦           Post-aliyah support

AACI (Association of Americans & Canadians in Israel):

ï           Website: aaci.org.il

ï           Multiple branches throughout Israel

ï           Networking events

ï           Professional development

ï           Social activities

ï           Employment services

Qualita (French Speakers):

ï           Website: qualita.org.il

ï           Support for French-speaking olim

ï           Employment services

ï           Integration programs

Online Communities

Facebook Groups:

ï           "Remote Jobs for Digital Nomads"

ï           "Freelancers in Israel"

ï           "Olim Entrepreneurs"

ï           "Tech Jobs Israel"

ï           "New Olim Israel"

ï           "Secret Tel Aviv" (jobs posted)

ï           Industry-specific groups

LinkedIn:

ï           Very active in Israel

ï           Join relevant groups

ï           Follow companies

ï           Engage with content

Reddit:

ï           r/freelance

ï           r/digitalnomad

ï           r/Israel

ï           r/remotework

Slack/Discord Communities:

ï           Industry-specific communities

ï           Remote work communities

ï           Freelancer groups

Local Resources in Israel

Coworking Spaces (Networking)

Tel Aviv:

ï           WeWork (multiple locations)

ï           LABS

ï           Mixer

ï           Mindspace

ï           Terminal X

Jerusalem:

ï           WeWork

ï           JVP Media Quarter

ï           The Bridge

ï           Impact Hub

Other Cities:

ï           Most major cities have coworking options

ï           Growing ecosystem

Meetup Groups

Types:

ï           Entrepreneurship

ï           Freelancing

ï           Tech (programming languages, startups)

ï           Marketing

ï           Design

ï           Language exchange

ï           Olim social groups

**Website: **meetup.com

Business Incubators and Accelerators

If Starting Company:

ï           The Junction (Jerusalem)

ï           8200 EISP

ï           MassChallenge Israel

ï           Various others

For Freelancers:

ï           Some offer coworking

ï           Networking opportunities

ï           Mentorship

Professional Services

Accountants

Find Through:

ï           Referrals from other freelancers

ï           Anglo List

ï           Facebook groups

ï           LinkedIn

ï           Google (search "English-speaking accountant Israel")

**Cost: **₪200-800/month (~$54-216)

Lawyers

When You Might Need:

ï           Complex contracts

ï           Business structure

ï           Disputes

ï           Intellectual property

ï           Immigration issues

Find Through:

ï           Israeli Bar Association (israelbar.org.il)

ï           Referrals

ï           Anglo List

Business Coaches/Consultants

Can Help With:

ï           Pricing strategy

ï           Business development

ï           Marketing

ï           Systems and processes

ï           Scaling

Find Through:

ï           LinkedIn

ï           Referrals

ï           Local entrepreneurship groups

Financial Planning

Banking Advisors

ï           Available at your bank

ï           Can help with:

◦           Business account optimization

◦           International transfers

◦           Loans (if needed)

◦           Investment options

Financial Planners

Israeli Financial Advisors:

ï           Help with retirement planning

ï           Investment strategies

ï           Insurance needs

ï           Long-term financial goals

**Note: **If advising on foreign investments, need proper licensing

Pension Planning

Important:

ï           Self-employed responsible for own retirement

ï           Can open pension accounts in Israel

ï           Consider diversifying (Israeli + foreign accounts)

ï           Start early (compound interest!)

ï           Tax benefits for pension contributions

Mental Health and Wellbeing

Therapy/Counseling

Coverage:

ï           Partial coverage through Bituach Leumi/Kupat Cholim

ï           Private therapy available

ï           English-speaking therapists common in cities

Why It Matters:

ï           Freelancing can be stressful

ï           Immigration challenges

ï           Isolation concerns

ï           Professional support helpful

Support Groups

Available:

ï           Olim support groups

ï           Entrepreneur support

ï           Freelancer meetups

ï           Online communities

Continuing Education

Online Platforms

Skill Development:

ï           Coursera

ï           Udemy

ï           LinkedIn Learning

ï           Pluralsight (tech)

ï           Skillshare

ï           MasterClass

Tax Deductible:

ï           Professional development courses

ï           Certifications

ï           Industry conferences

ï           Books and subscriptions

Key Takeaways

Remote work and freelancing in Israel is:

ï           **Viable: **Strong infrastructure, timezone advantages, tech culture

ï           **Financially advantageous: **Especially with new resident tax status

ï           **Flexible: **Work for global clients while living in Israel

ï           **Growing: **Remote work culture expanding in Israel

ï           **Supported: **Resources and community available

Success Factors:

ï           Proper legal/tax setup (hire accountant!)

ï           Strong professional skills

ï           Self-discipline

ï           Financial planning

ï           Community involvement

ï           Work-life balance

ï           Continuous learning

Critical Actions:

1.        Register as self-employed properly

2.        Apply for new resident tax status if eligible
3.        Hire competent accountant
4.        Set up reliable payment methods
5.        Build emergency fund
6.        Network and build community
7.        Invest in skills and equipment
8.        Plan for long-term sustainability

Final Thoughts

Remote work and freelancing open tremendous opportunities for living in Israel while maintaining international career options. The combination of Israel's quality of life, strategic location, and (for new immigrants) extraordinary tax benefits creates one of the most attractive destinations globally for remote workers and digital entrepreneurs.

The bureaucracy can be challenging, the cost of living is high, and the adjustment takes time. But thousands of remote workers and freelancers have successfully built careers and lives in Israel, and with proper planning and support, you can too.

The key is preparation:

ï           Understand the legal and tax requirements

ï           Set up properly from the start

ï           Build financial buffers

ï           Invest in professional support (accountant, lawyer if needed)

ï           Connect with the community

ï           Stay disciplined and focused

Israel's "startup nation" mentality, combined with universal healthcare, strong social safety nets, and the potential tax benefits for new immigrants, creates a unique environment for remote work. You can build a global career while enjoying Mediterranean beaches, world-class culture, and (if Jewish) a deep connection to ancestral homeland.

Welcome to remote work in Israel. May your internet be fast, your clients be reliable, and your tax status be optimized.

B'hatzlacha! (Good luck!)

**Document Version: **2025

**Disclaimer: **This guide is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and regulations change frequently. Always consult with qualified Israeli accountants, tax advisors, and lawyers for your specific situation. The author and contributors assume no liability for decisions made based on this information.

Updated on: 01/02/2026