The Innovation Visa for Foreign Entrepreneurs is a pilot program enabling foreign entrepreneurs to reside in Israel for up to 24 months to develop technologically innovative projects with the aim of establishing an Israeli company. Launched in February 2017, it is a joint initiative of the Israel Innovation Authority, the Ministry of Foreign Affairs, and the Population and Immigration Authority (PIBA). The visa is classified as a B/2 visitor's residence permit, meaning holders do not enter into any employer-employee relationship with Israeli entities. Entrepreneurs are hosted within approved "landing pad" incubators and accelerators that provide workspace, mentoring, and access to Israel's innovation ecosystem. The program remains active and listed by the Innovation Authority and PIBA.
The B/2 Innovation Permit is initially valid for up to 1 year and can be extended to a maximum cumulative period of 24 months. Extension applications must be submitted to PIBA at least 3 months before the current permit expires, and renewal requires continued compliance with program conditions plus a recommendation from the Israel Innovation Authority.
If the venture matures into an incorporated Israeli company with Innovation Authority support approval, the founder may transition to a B/1 Expert Work Visa under PIBA's Foreign Experts route. That route requires a salary of at least double the Israeli average wage and is extendable up to a cumulative maximum of 63 months. The transition application can be filed while the B/2 permit is still valid, without leaving Israel.
Spouse and children under 18 may accompany the primary visa holder. Family members apply separately through PIBA under standard B/2 visitor visa procedures, and dependant visas can be extended to match the duration of the entrepreneur's permit. Family members do not receive work authorization and cannot be employed in Israel.
The B/2 visa does not itself create tax residency. Israeli tax residency is triggered by the 183-day presence test or the "centre of life" test under the Income Tax Ordinance. New residents and returning citizens receive a 10-year exemption from Israeli tax on foreign-source income. Entrepreneurs should be aware that spending most of the visa period in Israel may trigger tax residency.
The application proceeds in two stages. In Stage 1, the entrepreneur applies to the Israel Innovation Authority through one of the approved landing pad organizations, which reviews the application and issues a confirmation of acceptance. The Innovation Authority then assigns a professional evaluator to examine the project's technological merit, competitiveness, and potential, and its committee issues a recommendation to PIBA.
In Stage 2, the entrepreneur applies to PIBA for the B/2 Innovation Visa, submitting the recommendation along with all required documents. Nationals of countries requiring an entry visa apply at an Israeli consulate abroad. Nationals of visa-exempt countries may enter Israel on their standard visa-free entry and apply at the PIBA office in Bnei Brak within 30 days of arrival.
During the development phase, Innovation Visa holders are eligible to apply for grants under the Innovation Authority's Tnufa (Ideation) Incentive Program. The program funds an approved budget of up to NIS 250,000 per application at an 80% grant rate — a grant of up to NIS 200,000 (approximately USD 55,000) — over a 12-month period for early-stage concept development, prototyping, and proof-of-concept work. Tnufa is open to independent entrepreneurs even before a company is incorporated, and conditional-grant royalty repayment is required from future product sales.