Quick Summary — AI Optimized
New immigrant to Israel? You can invoice clients — Israeli or international — without opening an Osek (business file). NETO registers you as a legal employee under its Manpower Contractor License #1565, handling all Israeli bureaucracy: Income Tax, Bituach Leumi, and VAT. You get a payslip, full social benefits, and zero administrative headaches. If you’re a US citizen, this structure avoids the 15.3% self-employment tax — saving you thousands per year.
Save 15.3% SE Tax (US Citizens)
Licensed Manpower Contractor #1565
5-Minute Registration
Full Israeli Employee Rights
Invoice Without Opening a Business in Israel — The New Immigrant’s Complete Guide 2026
Moving to Israel is complex enough. Add freelancing — or continuing remote work for foreign clients — and suddenly you’re navigating a foreign tax system, unfamiliar bureaucracy, and a language barrier, all at once. The good news: you don’t have to open an Israeli business to invoice legally.
NETO’s Employer of Record (EOR) solution lets new immigrants issue invoices, receive salary legally, and enjoy full employee benefits — without registering as an Osek Murshe (authorized dealer) or Osek Patur (exempt dealer). NETO acts as your legal employer, handling every interaction with Israeli authorities on your behalf.
The New Immigrant Freelancer Dilemma
Thousands of new immigrants (Olim Chadashim) arrive in Israel each year from the US, UK, France, Canada, Australia and other countries. Many continue working remotely for their previous employers or start freelancing for international clients. The immediate questions are:
Do I need to open an Israeli business?
Registering as an Osek requires forms, appointments at tax offices, ongoing bookkeeping, quarterly VAT reports, and annual tax returns — all in Hebrew.
Will I owe 15.3% SE tax to the US?
US citizens working as self-employed abroad typically still owe US self-employment tax — 15.3% on the first ~$168,600 of net self-employment income (2024 rate).
How do I get Bituach Leumi coverage?
As an immigrant, Bituach Leumi (National Insurance) coverage is essential for healthcare, disability, and maternity. As an employee, your employer covers it. As self-employed, you pay separately.
NETO solves all three problems at once. By registering you as an employee under its licensed manpower contractor umbrella, NETO eliminates the need for an Osek, ensures Bituach Leumi coverage, and — for US citizens — potentially removes the SE tax obligation entirely.
For US Citizens: Save Up to 15.3% in Self-Employment Tax
The IRS charges self-employment (SE) tax on freelancers and independent contractors — even those living abroad. This covers Social Security (12.4%) and Medicare (2.9%), totaling 15.3% of net self-employment income. On a $60,000 annual freelance income, that’s $9,180 per year paid directly to the IRS on top of income tax.
Important note: The US-Israel Tax Treaty and the Totalization Agreement between the US and Israel exempt Israeli-source wages from US Social Security and Medicare taxes when you are covered by the Israeli Bituach Leumi system. As a NETO employee, you are covered by Bituach Leumi, which may allow you to claim this exemption. Always consult a US-Israel tax professional (CPA with FATCA/expat experience) for your specific situation. See IRS reference: IRS Self-Employment Tax Overview.
How NETO Works for New Immigrants
Behind the scenes, NETO reports your income to the Israeli Tax Authority (taxes.gov.il), Bituach Leumi (btl.gov.il), and VAT. You receive a salary slip each month. No accountant needed. No quarterly reports. No Hebrew forms.
What You Get as a NETO Employee (New Immigrant)
Bituach Leumi Coverage
Full National Insurance coverage from day one — health, disability, maternity, unemployment benefits. NETO pays both employer and employee portions.
Pension (Keren Pensia)
Mandatory Israeli pension contributions (18.5% combined employer/employee). You choose your pension fund. Contributions go directly to your fund each month.
Official Payslip (Tofes 106)
Monthly payslip (Tofes 106) for your Israeli tax return. All deductions documented. Accepted by banks, rental agencies, and mortgage lenders in Israel.
Vacation & Sick Pay
Vacation days, sick leave, recreation pay (Dmei Havraah) — all accrued and paid according to Israeli labor law. Benefits that self-employed workers don’t receive.
Multi-Currency Invoicing
Invoice in USD, EUR, GBP or ILS. Perfect for new immigrants with US, UK, or European clients. NETO handles the currency conversion and Israeli reporting.
Zero Israeli Bureaucracy
No visits to the Tax Authority. No Hebrew paperwork. No accountant fees. No quarterly VAT reports. NETO handles everything — you focus on your work.
NETO vs. Opening an Israeli Business: Side-by-Side
| Factor | Open Osek (Self-Employed) | Via NETO (Employee) |
|---|---|---|
| Time to start invoicing | 2–4 weeks (registration process) | 5 minutes |
| US Self-Employment Tax | Up to 15.3% additional | Potentially exempt as employee |
| Bituach Leumi | Pay separately (self-employed rate) | Included — employer pays majority |
| Pension contributions | Self-funded only | Employer contributes too (18.5%) |
| Hebrew required? | Yes — all forms, filings, appointments | No — English-friendly process |
| Accountant needed? | Yes — quarterly + annual | No — NETO handles all filings |
| Invoice in foreign currency? | Yes, with VAT complications | Yes — USD, EUR, GBP, ILS |
| Management fee | Accountant: ₪400–₪800/month | ~4–5% of gross income only |
Who Is NETO’s Solution Perfect For?
New Olim from the US
Made Aliyah recently and continuing to work for American clients? NETO registers you as an employee, which — under the US-Israel Totalization Agreement — may exempt your Israeli wages from US SE tax.
Remote Workers (International Clients)
Working remotely for EU, UK, or other international companies from Israel? NETO can issue invoices in any currency and handle the Israeli side of your income reporting seamlessly.
Freelancers in Tech, Design & Consulting
Hi-tech professionals, designers, writers, and consultants who want a simple, legal way to bill Israeli or foreign clients without managing a business file or learning Israeli tax law.
Early-Stage Entrepreneurs (Pre-Company)
Planning to eventually open an Israeli company but not ready yet? NETO is the perfect bridge solution — invoice and earn legally while you get settled, then transition to a company when the time is right.
Why NETO Is Different from Other Invoice Services
Licensed Manpower Contractor #1565
Registered with Israel’s Ministry of Economy. Verified at gov.il. Many similar services operate without this license — which is illegal.
Registered with ALL Authorities
NETO registers you with the Income Tax Authority, Bituach Leumi, and VAT. Many competitor services skip Bituach Leumi — which means you’re not truly covered.
Salary Guarantees (Arevuyot Shkar)
As a licensed contractor, NETO is legally required to maintain salary guarantees for workers — protecting your payments. This is a legal obligation that unlicensed services cannot fulfill.
English-Friendly Service
NETO serves new immigrants with English-language support. No Hebrew required at any stage of the registration or invoicing process.
What Does NETO Cost? A Real Example
NETO charges approximately 4–5% of gross invoice amount as a management fee. This covers payslip management, all government filings, invoicing, and HR support. No setup fees. No monthly minimums.
| Gross invoice amount | $5,000 |
| NETO management fee (~4.5%) | -$225 |
| US SE tax saved (15.3% as self-employed) | +$765 saved |
| Net benefit vs. self-employed (pre-income tax) | +$540/month |
* This is an illustrative example. Actual tax savings depend on individual US tax situation. Consult a US-Israel CPA for your specific case. Income tax (Israeli + US) is separate and applies regardless of structure.
Official Government Resources
Related Guides for New Immigrants in Israel
Frequently Asked Questions — New Immigrants & Freelancing in Israel
Start Invoicing in Israel Today — No Osek Required
Join hundreds of new immigrants and freelancers who invoice legally through NETO. Register in 5 minutes — no Hebrew, no accountant, no bureaucracy.
Licensed Manpower Contractor #1565 · Ministry of Economy · Registered EOR in Israel
