The B/5 Investor Visa is a temporary residence permit that enables foreign investors to live and work in Israel for the purpose of managing and developing a business in which they hold a substantial personal stake. The visa was created under Regulation 5A of the Entry into Israel Regulations (1974) to satisfy the reciprocity requirement for the US E-2 Treaty Investor Visa, and became operational on 1 May 2019. It is administered by the Population and Immigration Authority (PIBA) under the Ministry of Interior. Currently, only US citizens are eligible, as the United States is the sole country listed as a "framework state" in the regulations.
The initial visa is valid for 2 years. Extensions are granted in increments — the first renewal is typically for 3 years, and subsequent renewals for up to 5 years. There is no statutory maximum number of renewals as long as the business continues to meet requirements. Extension applications must be submitted at least 3 months before expiration.
Renewal requires demonstration of continued active business operations, maintained or increased investment, tax compliance, no criminal violations, and a minimum of 8 months annual presence in Israel.
The investor's spouse receives a B/52 visa and children under 21 receive a B/53 visa. Both spouses and children may live, work, and study in Israel without restriction — they are not limited to the investor's business. Key employees who are US citizens may receive B/51 derivative status, and their own family members are also eligible for B/52 and B/53 visas. Application fees for dependant visas are the same as for the primary investor.
Israeli tax residency is triggered by the 183-day presence test or the "centre of life" test under the Income Tax Ordinance. Personal income tax is assessed at progressive rates of 10%–50%. Corporate tax is 23%, and VAT is 17% on business transactions. Annual tax returns must be filed with the Israel Tax Authority. Israel maintains over 55 tax treaties globally.
The process begins with establishing or acquiring a qualifying Israeli business registered and managed within Israel. The investor then files a visa application in person at one of four designated Israeli consulates in the United States: Washington DC, New York, Houston, or San Francisco. A personal interview is required.
After submission, the application is forwarded to an inter-ministerial advisory committee with representatives from the Ministry of Interior, Ministry of Finance, Ministry of Economy (Foreign Trade Administration), Ministry of Foreign Affairs, Ministry of Labour, and Ministry of Justice. The committee evaluates the application and issues a recommendation to the Minister of Interior, who makes the final decision.
Commonly cited application fees are NIS 830 for the initial application and NIS 710 for extensions, though these practitioner-reported figures are not confirmed against the official PIBA fee schedule and should be verified with the consulate. Total processing time is approximately 6–12 months.
Acceptable sources of funds include business proceeds, family contributions, property sales, inheritance, accumulated savings, and monetary gifts. Investment allocation must generally follow: minimum 50% to core business operations, maximum 25% for operational expenses (rent, salaries), maximum 15% for business vehicles, and maximum 10% for personal accommodations.
The B/5 visa does not automatically lead to permanent residency. After approximately 5–7 years of continuous legal residence, the investor may apply for permanent residency, subject to meeting Hebrew language proficiency requirements, demonstrated community integration, financial stability, and enhanced security clearance. Absence from Israel may not exceed approximately 3 months per year during the progression period.