Approved Specialist ("Mumcheh Meushar")

Section 50 of Israel's "Law for the Encouragement of Capital Investments" (1959) defines "Approved Specialist" as a foreign resident who is invited by a factory with the agreement of the factory manager to work in the factory as a Specialist, so that his work might help implement the intent of this law and the specialist must not have been a resident of Israel prior to this.  (For a full version of this law, please press here).

According to the provisions of the law, a foreign resident that is authorized as an Approved Specialist by the Manager of The Israel Investment Center is entitled to a tax benefit.  Over a period of three years (with the possibility for an additional 5 year extension), the Specialist's tax rate is not subject to an increase of more than 25% from the time the Specialist started working, according to a specified wage ceiling approved by The Israel Investment Center, and this level will be considered the highest possible in the wage scale.

The status of Approved Specialist will be granted only to a specialist that is invited by an "Authorized Factory".  Further, the authorization is granted only if it is found that the Specialist is essential to the establishment or expansion of the Authorized Factory as part of a pioneering or innovative production line that is the basis of the industry in Israel, and is intended to manufacture products that have not yet been produced by the requesting factory.  The duties of the Specialist will not be managerial or administrative in nature (unless it is in the tourist industry) nor will they be in research and development.

The main criteria to receive the status of an "Authorized Factory" and to receive the benefits of the aforementioned law are as follows: high added-value to the local market, marketing ability, technological innovation, and the competition potential for exports to foreign markets and to local markets in terms of exposure.  Also taken into consideration is the program's contribution to the development of the community and to the creation of new sources of employment.

Process to receive authorization as an "Approved Specialist"

A request to be an "Approved Specialist" is submitted to The Israel Investment Center, within the Ministry of Industry, Trade and Labor (MOITAL).  In order for the specialist to be approved, the company employing the foreign specialist must be recognized as an Approved Factory by The Israel Investment Center.  There are several documents that must be attached to the request, in accordance with the requirements of The Israel Investment Center.  The request generally takes a few weeks to be authorized from the day the request was submitted.