IsraelKapitel
Israel has an exceptional innovation ecosystem and technology leadership. Often referred to as the “Startup Nation,” Israel has one of the highest concentrations of startups per capita globally, particularly strong in cybersecurity, artificial intelligence, software, medical devices, agri-tech, and climate technologies. Companies doing business in Israel gain early access to cutting-edge innovation and commercially viable R&D.
A key advantage is strong government support for innovation and foreign investment, led by the Israel Innovation Authority, which offers grants, R&D co-funding, and incentive programs that significantly reduce development risk for both local and international companies. This support is especially valuable for technology-driven and research-intensive businesses.
Israel also benefits from a highly skilled, entrepreneurial workforce. Engineers, scientists, and founders are globally oriented, English-speaking, and experienced in fast-paced problem solving. This talent base enables rapid product development and scalability, making Israel an ideal location for R&D centers and innovation hubs rather than low-cost manufacturing.
From a strategic perspective, Israel functions as a gateway to global markets. While its domestic market is small, Israeli companies are export-focused by necessity and maintain strong trade and business ties with the United States, Europe, and Asia. Many startups are built from day one with international customers, regulations, and scalability in mind.
The country also offers a mature venture capital and exit environment, with strong participation from international investors and frequent acquisitions or IPOs, particularly on US exchanges. Combined with robust legal protections for intellectual property and transparent commercial laws, Israel provides a secure environment for IP-driven businesses and cross-border partnerships.
Kennzahlen
- Fläche
- 21,937 km2
- Bevölkerung
- 9,552,637 (2025 est.)
- Regierungsform
- parliamentary democracy
- Sprachen
- Hebrew (official), Arabic (special status under Israeli law), English (most commonly used foreign language)
- BIP
- $401.954 billion (2020 est.)
- Wachstumsrate
- 3.5-5%(2026 est.)
- HDI
- 19
- Hauptstadt
- Jerusalem
Makroökonomische Indikatoren
Growth is projected to strengthen to over 3½ per cent in 2018 and 2019. Support from fiscal easing, very low interest rates and a stronger external environment will boost demand and employment. In a tight labour market, rising wage pressures are projected to lead to a steady increase in inflation.
The monetary authorities must stand ready to gradually raise interest rates once inflation is sustainably back in the 1-3% targeted range. Higher social spending and expenditure on education and health care are welcome to foster more inclusive growth. The financing of these expenses with sufficient revenues would preserve budgetary room for manoeuvre and lower the risk of overheating. Reducing the existing large social disparities will be beneficial for growth, but will also requires intensifying structural reforms that improve the skills and productivity of disadvantaged groups.
Source: OECD - Economic Forecast
IMF Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
4.208 |
3.071 |
3.155 |
2.217 |
2.185 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
3.115 |
2.823 |
2.785 |
3.01 |
3.067 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
15.993 |
15.308 |
17.009 |
20.061 |
21.377 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
-1.106 |
-4.692 |
2.467 |
2.984 |
3.27 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
2.063 |
0.954 |
2.495 |
3.926 |
3.281 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
52146.476 |
54294.192 |
60008.972 |
64275.33 |
66005.451 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
513.394 |
542.285 |
610.752 |
666.407 |
697.005 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
-7.396 |
-0.7 |
6.19 |
2.907 |
3.9 |
|
Unemployment rate |
3.45 |
2.983 |
2.9 |
3.2 |
3.5 |
Estimates
Source: IMF Statistics - Israel
Luxemburg und das Land
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 13.12.2004 (Memorial 2006, A, no. 81, p.1446)
- Effective as of 01.01.2004 (Memorial 2006, A, no. 81, p.1446)
Air Services agreement
- Agreement from 06.14.1994 (Memorial 1995, A, p. 1646)
- Effective as of 20.11.1995 (Memorial 1995, A, p. 2566)
Weitere Informationen
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Israel
Luxembourg is represented by Ambassade Royale des Pays-Bas à Tel Aviv
Honorary Consul
Honorary Consul with jurisdiction in Israel:
Mr Miron Chaim IZAKSON
Beit Asia 5ft floor
4 Weizmann St.
IL-65271 Tel-Aviv
Israel
Tel.: (+972) 3 68 55 092
E-Mail: telaviv@consul-hon.lu
Luxembourg Trade and Investment Office in Tel Aviv
Mr Itai HORSTOCK
Guinevere Ltd.
113 Hashmonaim Street
Tel Aviv 67133
Israel
Tel.: (+972) 3 6225 4454
Website: www.investinluxembourg.co.il
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Israel
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: ODL
Other Useful Links:
- Invest in Israel
- Israeli Ministry of Economy and Industry
- Israel Export Institute
- Federation of Israeli Chambers of Commerce
- Startup Nation
- OECD – Israel Economic Surveys