HSBC Treasury Management Profiles 2018 -

Current section, Introduction


Israel has a thriving technology sector, and is a hub for many multinational companies producing high-tech products. Exports of goods and services account for 30 per cent of GDP with precious metals and stones (27 per cent of exports) and electrical equipment (15 per cent of exports), the country’s biggest exports. Israel is also a major importer of goods, particularly from the USA (13 per cent off imports), which is also its largest export market (32 per cent of overall exports). According to figures released by the Israeli Ministry of Economy and the Israel Export Institute, exports of merchandise and services exceeded USD100 billion in 2017; year-on-year exports rose 5 per cent, despite the effect a strong shekel is having on the economy (the ILS strengthened 11 per cent against the USD in 2017). The country’s strengthening economy is being supported by strong household spending (7.8 per cent Q3) and falling unemployment (4.3 per cent in November 2017). GDP is expected to grow by 3.0 per cent in 2017 (down from the 4 per cent expansion on 2016) and by 3.3 per cent in 2018. Israel recorded a budget deficit of 1.97 per cent of GDP in 2017, below a target of 2.9 per cent. The lower than expected budget deficit was helped by the high level of employment in the country and higher than expected tax income. In January 2018, the Ministry of Finance set its 2019 budget at USD139 billion, a USD5.8 billion increase on the approved 2018 budget, with a budget deficit target of 2.9 per cent. In September 2017, the government approved a five-year USD32.4 billion infrastructure plan aimed at increasing productivity and the growth potential of the economy.

To read the detailed report, please click on the Download PDF option

Legal and regulatory

  • Foreign exchange and domestic currency (ILS) accounts can be held by residents both domestically and abroad. Resident domestic currency accounts are freely convertible
  • Non-resident bank accounts are permitted in both foreign and domestic (ILS) currency. Non-resident domestic currency accounts can also be held abroad. Non-resident domestic currency accounts are freely convertible
  • All transactions between residents and non-residents must be reported to the central bank
  • Israel does not apply exchange controls

To read the detailed report, please click on the Download PDF option


  • Resident companies are subject to tax on their worldwide income
  • Non-resident companies are taxed on Israeli-sourced income only
  • The corporate income tax rate is 23 per cent

To read the detailed report, please click on the Download PDF option

Payment instruments and systems

  • Electronic credit transfers are used for both high-value corporate and low-value retail payment transactions, although cheques remain a common cashless payment instrument for both retail and commercial payments. Payment cards are the most popular method of payment in Israel; debit card regulations introduced in 2016 increased the issuance and use of debit cards. Mobile payments are increasingly popular
  • Israel operates three national payment systems: Zahav, an RTGS system; Masav, for low-value electronic debits and credits; and the BCH, for paper-based payments

To read the detailed report, please click on the Download PDF option

Cash management

  • Notional pooling and cash concentration are permitted between resident and non-resident companies. Cross-border sweeping is possible, but may be subject to income tax deductions
  • Cash collection and account receivables services are available

To read the detailed report, please click on the Download PDF option

Electronic banking

  • Electronic banking is commonplace in Israel. There is no bank-independent electronic banking standard
  • Internet and mobile banking services are provided by all of the country’s banks for both corporate and retail purposes

To read the detailed report, please click on the Download PDF option



To read the full report on Israel and to discover more on these and other topics, including banking and trade, please click on the Download PDF option.


  • Central Bureau of Statistics
  • World Bank
  • Israel Export and International Cooperation Institute.

The materials contained on this page were assembled in April 2017 (unless otherwise dated).



This document has been produced by HSBC Bank plc and members of the HSBC Group (“HSBC”), together with their third-party contributor, WWCP Limited. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The information contained in this document has not been independently verified by HSBC.

This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services provided by HSBC or any form of cooperation between HSBC and the respective third parties.

Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect, consequential or other) arising out of reliance upon this document and the information contained within it.

HSBC and the third-party contributor do not undertake, and are under no obligation, to provide any additional information, to update this document, to correct any inaccuracies or to remedy any errors or omissions.

No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information contained in this document shall be subject to the terms of separate legally binding documentation and nothing in this document constitutes an offer to provide any products or services.