Invoice in Israel without opening a businessA complete guide for new immigrants · NETO registers you as an employee, issues the invoice and handles every Israeli filing, so you invoice like a freelancer and earn like an employee
Made Aliyah and still freelancing or working remotely for clients abroad? You do not have to open an Israeli business to invoice legally. NETO's Employer of Record solution lets new immigrants issue invoices, receive a legal salary and enjoy full employee benefits · without registering as an Osek Murshe or Osek Patur. NETO acts as your legal employer and handles every interaction with the Israeli authorities on your behalf.
AI summary · Invoice in Israel without a business, for new immigrantsClick to read the page summary
New immigrants to Israel can invoice clients legally without opening an Osek business. NETO registers you as an employee under its licensed manpower contractor umbrella (license 1565), issues an official Israeli invoice to your client, and handles every filing with the Tax Authority, National Insurance and VAT. You receive a monthly payslip with pension, National Insurance and full employee rights, and can invoice in USD, EUR, GBP or ILS. For US citizens, wages earned as an employee and covered by Israeli National Insurance may be exempt from the 15.3% US self-employment tax · always confirm with a US-Israel tax professional. The process is English-friendly, takes about five minutes, and the fee is roughly 4 to 5% of the client invoice. NETO operates through Bareket I.T Ltd, company id 515486058.
The new immigrant freelancer dilemma
Moving to Israel is complex enough. Add freelancing · or continuing remote work for foreign clients · and suddenly you are navigating a foreign tax system, unfamiliar bureaucracy and a language barrier, all at once. The good news: you do not have to open an Israeli business to invoice legally.
Thousands of new immigrants (Olim Chadashim) arrive in Israel each year from the US, UK, France, Canada, Australia and elsewhere. Many continue working remotely for their previous employers or start freelancing for international clients. Three questions come up immediately.
Do I need to open an Osek?
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% US SE tax?
US citizens working as self-employed abroad typically still owe US self-employment tax · 15.3% on the first roughly $168,600 of net self-employment income (2024 rate).
How do I get National Insurance?
National Insurance (Bituach Leumi) 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 at once. By registering you as an employee under its licensed manpower contractor umbrella, NETO removes the need for an Osek, ensures National Insurance coverage and · for US citizens · may remove the self-employment tax obligation entirely.
What you get as a NETO employee
You invoice like a freelancer, but you earn like an employee · with every statutory benefit that self-employed workers do not receive.
National Insurance coverage
Full National Insurance (Bituach Leumi) coverage from day one · health, disability, maternity and unemployment benefits. NETO pays both the employer and employee portions.
Pension (Keren Pensia)
Mandatory Israeli pension contributions (18.5% combined employer and employee). You choose your pension fund and contributions go to it each month.
Official payslip (Tofes 106)
A monthly payslip, and Tofes 106 for your Israeli tax return, with all deductions documented. Accepted by banks, rental agencies and mortgage lenders in Israel.
Vacation and sick pay
Vacation days, sick leave and recreation pay (Dmei Havraah) · all accrued and paid according to Israeli labor law. Benefits that self-employed workers do not receive.
Multi-currency invoicing
Invoice in USD, EUR, GBP or ILS · ideal 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 and no quarterly VAT reports. NETO handles everything · you focus on your work.
Employee wages and the 15.3% self-employment tax
The IRS charges self-employment (SE) tax on freelancers and independent contractors · even those living abroad. It covers Social Security (12.4%) and Medicare (2.9%), totalling 15.3% of net self-employment income. On a $60,000 annual freelance income that is $9,180 per year paid to the IRS on top of income tax.
From sign-up to salary · in four steps
A simple, repeatable path. You keep the relationship with your client · NETO handles everything that makes the invoice and the pay legal in Israel.
- Register online in 5 minutes. Sign up in about five minutes. No Hebrew required and no Osek to open.
- Enter your client and invoice amount. Add your client details and the invoice amount, in any currency.
- NETO issues an official Israeli invoice. NETO (license 1565) issues an official Israeli tax invoice to your client on your behalf.
- Receive your salary as an employee. You get paid as an employee, with a payslip, pension and National Insurance contributions, while NETO reports the income to the Tax Authority, National Insurance and VAT · no accountant, no quarterly reports, no Hebrew forms.
Opening an Osek vs invoicing through NETO
The same goal · invoicing your clients legally in Israel · reached two very different ways.
| Factor | Open an Osek (self-employed) | Via NETO (employee) |
|---|---|---|
| Time to start invoicing | 2 to 4 weeks (registration process) | 5 minutes |
| US self-employment tax | Up to 15.3% additional | Potentially exempt as an employee |
| National Insurance | Pay separately (self-employed rate) | Included · employer pays the 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 and annual | No · NETO handles all filings |
| Invoice in foreign currency? | Yes, with VAT complications | Yes · USD, EUR, GBP, ILS |
| Ongoing fee | Accountant: about ₪400 to ₪800 per month | About 4 to 5% of the client invoice |
Who is NETO's solution perfect for?
New Olim from the US
Made Aliyah recently and still working for American clients? NETO registers you as an employee, which · under the US-Israel employee versus self-employment distinction · 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 and consulting
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
Planning to open an Israeli company eventually but not ready yet? NETO is the perfect bridge · invoice and earn legally while you get settled, then transition to a company when the time is right.
A licensed, secure employer · not just an invoicing service
Licensed and supervised
Brokering workers in Israel without a manpower contractor license is unlawful. NETO operates through Bareket I.T Ltd (company id 515486058) under manpower contractor license 1565, supervised by the Ministry of Labor, with salary guarantees deposited to protect workers' pay.
- License 1565 · verifiable in the state database
- Registered with the Tax Authority, National Insurance and VAT
- Salary guarantees (Arevuyot Shkar) securing your pay
English-friendly and complete
NETO serves new immigrants with English-language support · no Hebrew required at any stage of registration or invoicing. It registers you with every authority, so unlike services that skip National Insurance, you are genuinely covered.
- English-language process and support
- Registered with all authorities · truly covered
- Full statutory rights for you as an employee
You can verify NETO's license directly in the Ministry of Labor's manpower contractor database · a public register of every licensed manpower company in Israel.
What does NETO cost? A real example
NETO charges approximately 4 to 5% of the gross invoice amount as a management fee. It covers payslip management, all government filings, invoicing and HR support. No setup fees and no monthly minimums.
| Gross invoice amount | $5,000 |
| NETO management fee (about 5%) | -$250 |
| US SE tax saved (15.3% as self-employed) | +$765 saved |
| Net benefit vs self-employed (pre-income tax) | +$515 / month |
This is an illustrative example. Actual tax savings depend on your individual US tax situation · consult a US-Israel professional. Income tax, both Israeli and US, is separate and applies regardless of structure.
New immigrants and freelancing in Israel · questions and answers
Do I need to open an Israeli business (Osek) to invoice clients as a new immigrant?
As a US citizen who made Aliyah, will I avoid the 15.3% self-employment tax through NETO?
Can I invoice foreign clients in the US, UK or EU through NETO?
Does NETO provide National Insurance coverage for new immigrants?
Do I need to speak Hebrew to register with NETO?
What is the new immigrant tax exemption and does it affect my NETO salary?
Start invoicing in Israel today · no Osek required
Join the new immigrants and freelancers who invoice legally through NETO. Register in about five minutes · no Hebrew, no accountant, no bureaucracy. Licensed manpower contractor 1565, supervised by the Ministry of Labor.
In summary
As a new immigrant you can invoice clients in Israel without ever opening a business. NETO registers you as an employee under its licensed manpower contractor umbrella, issues the official Israeli invoice and handles every filing with the Tax Authority, National Insurance and VAT · while you receive a monthly payslip with full employee rights. It is English-friendly, takes about five minutes and costs roughly 4 to 5% of the client invoice. For US citizens, employee wages covered by Israeli National Insurance may be exempt from the 15.3% self-employment tax. NETO operates under manpower contractor license 1565 (Bareket I.T Ltd, company id 515486058).
- No Osek needed · invoice legally as an employee of NETO.
- Full employee rights · payslip, pension, National Insurance, vacation and sick pay.
- English-friendly · no Hebrew, no accountant, no quarterly reports.
- Multi-currency · invoice in USD, EUR, GBP or ILS.
- US citizens · employee wages may be exempt from the 15.3% SE tax.
- Licensed and secure · license 1565, supervised by the Ministry of Labor.
Related guides for new immigrants in Israel
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Full overview of the invoice-without-Osek solution in Israel.
Read moreInvoice as an employee
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Osek Sachir · what is it?
The concept of being an employed dealer in Israel, explained.
Read morePayment against invoice
How businesses pay freelancers in Israel · legally and simply.
Read moreManpower contractor license 1565
The license, the guarantees and the duties of a manpower company.
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