Yes, completely legal. NETO acts as your legal employer under an Employer of Record (EOR) structure. Your client receives a proper tax invoice from NETO, and you receive a salary payslip. NETO holds a licensed manpower contractor permit (#1565) issued by the Israeli Ministry of Labor. Everything is fully reported to the tax authorities and the National Insurance Institute.

When you open an Osek Patur or Osek Morsheh (sole proprietor), you must register with the Israeli Tax Authority and VAT office, submit annual tax reports, make monthly advance tax payments, and often hire an accountant. With NETO, none of that is required. You are classified as an employee — no tax file, no annual reports, no advance payments, no accountant needed. NETO handles all the compliance.

Absolutely. There is no minimum commitment period and no subscription fee. You pay only a 5% commission on transactions you actually make. Finished one project? You owe nothing until your next transaction. The model is ideal for one-off gigs, seasonal projects, or anyone who only occasionally needs to invoice clients.

Yes. This is one of the most common scenarios. You continue working at your main employer while billing additional clients through NETO. Important: when you have two income sources, you’ll need a tax coordination (teum mas). NETO’s team will guide you through this process to make sure you’re paying exactly the right amount of tax — not more.

NETO supports multi-currency invoicing — USD, EUR, GBP, and more. Invoices to overseas businesses are typically issued with 0% VAT under Section 30 of the Israeli VAT Law, saving your foreign client 18% and making you more competitive internationally. Currency conversion is done at the Bank of Israel rate, and funds are transferred to your account in NIS after tax deductions.

Yes. Developers, engineers, and tech freelancers are among the most common NETO users. Whether you work with Israeli startups, international companies, or US-based clients, NETO allows you to bill legally, receive a proper payslip, and have pension contributions handled automatically — without opening a business entity or dealing with Israeli tax bureaucracy.

Definitely. Graphic designers, UX/UI designers, illustrators, and creative freelancers regularly use NETO to invoice their clients. Whether you work on multiple simultaneous projects or with clients abroad, NETO lets you collect payment legally without a business license, accountant, or monthly fees.

Yes. Content writers, copywriters, social media managers, digital marketing freelancers, and influencers all use NETO. You can invoice multiple clients from a single account. Each invoice is issued by NETO, gives your client a proper accounting document, and funds arrive in your bank account net of taxes.

Yes. Business coaches, life coaches, therapists, fitness trainers, private tutors, and online educators all use NETO. Whether you serve Israeli clients or international ones via Zoom — NETO provides a legal, simple way to get paid without opening a business. This includes both one-time sessions and ongoing monthly packages.

NETO charges a flat 5% commission on each transaction. There are no monthly subscription fees, no setup costs, and no hidden charges. Didn’t invoice anyone this month? You pay nothing. For example: on a ₪10,000 transaction, the fee is ₪500. The remainder (minus applicable taxes) is transferred to your bank account. Use our salary calculator for a precise estimate.

The net amount depends on your income level, tax credits, and applicable rates. From the gross amount received from your client, the following are deducted: National Insurance (~12%), income tax (progressive brackets), pension contributions (go to your personal fund), and NETO’s 5% fee. Use the NETO salary simulator for an accurate calculation based on your numbers.

Tax coordination is required only if you have two simultaneous income sources — for example, a salaried job plus freelance income through NETO. If NETO is your only income source, a tax coordination is generally not needed. NETO’s team will advise you based on your specific situation and help you complete the process if required.

NETO makes pension contributions to your personal pension fund in accordance with Israeli law. Contributions include both the employee and employer portions. The money belongs entirely to you and accumulates in your chosen pension fund. This is a significant advantage over self-employed freelancers who must manage pension contributions themselves — and often forget or skip them.

Yes. Since you are classified as an employee through NETO, National Insurance and health tax deductions are calculated and remitted automatically from your salary. You receive full National Insurance coverage — including sick pay, maternity/paternity benefits, disability, and more — just like any salaried employee in Israel.

Registration takes about 5 minutes: fill in your personal details and complete a digital tax form (Form 101). After approval — typically within a few hours — you can immediately issue your first invoice. Your client receives the invoice directly by email, and you have full visibility into the transaction status.

The invoice is issued in NETO’s name (as is standard with any staffing/payroll company), but you can include your project name and service description in the invoice details. Many business clients are familiar with the Employer of Record model and regularly receive invoices from companies like NETO. Your client gets a fully valid tax invoice for their accounting purposes.

Yes. There is no upper income limit with NETO. Unlike the Osek Patur status (capped at ~₪120,000/year), you can invoice any amount through NETO. Note that higher income means higher marginal tax rates, so use the salary simulator for accurate calculations. Tax credits and special conditions can help reduce your tax burden.

Yes. You can issue multiple invoices to different clients — local and international — through the same NETO account. Each invoice is entered separately with the client name, amount, and service description. There is no limit on the number of clients or invoices per month.

NETO transfers your payment after your client pays. The responsibility for collecting payment from your client rests with you — NETO is not a collection agency. We recommend agreeing on clear payment terms upfront and outlining them in a work agreement. You can issue a proforma invoice for the client to pay against, followed by the formal tax invoice upon receipt of funds.

Yes. NETO issues invoices to both business clients (companies, licensed businesses) and private individuals. Business clients who want to deduct the expense receive an invoice with all legally required details. Private clients receive a valid receipt/invoice. The process is identical from your end.

NETO’s service is designed for Israeli tax residents who report to the Israeli Tax Authority. If you are a foreign resident, your tax obligations may differ significantly. We recommend consulting with a tax professional specializing in international taxation before using the service. Have questions? Chat with us on WhatsApp.

Online accounting tools like iCount or Cheqbook help Osek Morsheh (licensed businesses) manage their invoices — but you still need to open a business file first. NETO is fundamentally different: you are not a business owner, you are an employee. No tax file, no VAT to manage, no annual reports. NETO is a licensed Employer of Record — not just invoicing software.

Yes — students are a common group of NETO users. Design work, development, writing, private tutoring, translations — all can be billed through NETO. You don’t need to understand tax law or hire an accountant. Fill in the details, and NETO handles the rest. Read more about student jobs at NETO.

Yes. NETO holds an official manpower contractor license from the Ministry of Labor (#1565), which qualifies for work with government bodies, municipalities, public companies, and local authorities. Every NETO invoice is a fully compliant tax invoice valid for all purposes.

NETO operates as a licensed manpower contractor and is legally required to maintain bank guarantees to secure employee wages. Client funds are held in trust and transferred to workers on a fixed schedule. Regulation by the Ministry of Labor provides an additional layer of protection for workers.

Yes, at any time. There is no minimum contract, no cancellation fees, and no penalties. Simply stop issuing invoices — and you will not be charged anything. Your transaction history, payslips, and documentation remain accessible in the system for reporting purposes.