On May 1, 2019, Israel launched its first Investor Visa policy for citizens of the United States. The policy was launched together with a parallel U.S. immigration policy allowing Israeli investors to receive E-2 investment visas for the U.S.
Who is eligible for an Investor Visa?
The following class of people are eligible for an investor visa: U.S. investors and those employees who either hold holding senior management positions or are “essential experts.” All must be U.S. citizens or hold a valid U.S. passport, and their purpose in pursuing a visa must be to work in Israel temporarily for the purpose of management and development of a business venture. The business venture must be a corporation or business established in Israel for the purpose of conducting business, industrial, commercial or entrepreneurial activities. The venture must be designed to produce profits in Israel and must be controlled and managed in Israel.
The Ministry of Interior also allows the partners of the above to receive visas to stay and work in Israel in non-business-related employment, as well as children under age 21, even if they are not U.S. citizens.
Visas under the investor visa policy fall under several categories: a B/5 visa for an investor; a B/51 visa for an essential expert; and a B/52 visa for the partner of an investor or essential expert.
What must the investor prove?
The Ministry of Interior’s policy defines an “investor” as a U.S. citizen who has invested in order to direct, manage or develop a business venture in Israel and who either (1) owns at least 50% of the business venture; or (2) has operative control of the business venture through a directorial/managerial business capacity or through other corporate means.
The investor must prove that s/he has harnessed capital of a significant scope to be sufficient for the successful operation of the business venture. The capital invested must indicate that the investor has taken on an irrevocable commitment to the business venture.
Once the cumulative conditions for the investor and business venture have been met, an individual assessment is made of each foreign national requesting a permit.
It should be noted that the foreigner must apply for the permit while still in the U.S. The foreigner cannot apply for the permit from within Israel and “upgrade” his or her status from that of a tourist. In addition, a foreigner will not be approved if s/he has previously stayed illegally in Israel or has been denied entry/restricted access to Israel.
If the investor or essential expert has filed all the required material, s/he will be invited to the Consulate for an interview to be conducted by the Consul and the attache’ of the Ministry of Economy and Industry. After the interview, all documents together with the evaluation of the Consul and the attache’ of the Ministry of Economy and Industry will be sent to the Foreign Investment and Industrial Cooperation Authority for the Ministry of Economy and Industry for its recommendation. The application and recommendation are then forwarded to the Central Committee in the Ministry of Interior and to the Chief Economist in the Ministry of Finance for their review. The Committee is composed of employees from the Ministry of Interior, the Finance Ministry, the Ministry of Economy and Industry, the Ministry of Labor and Social Services and the Ministry of Foreign Affairs.
The Committee’s final recommendation is then forwarded to the Minister of Interior, who makes the final decision as to whether to recognize the business venture or not.