Proposed Law Would Bind IDF Tech Graduates to Israeli Tax Residency for a Decade

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Graduates of elite IDF technology units — Unit 8200, Mamram, Talpiot — rank among the world’s most sought-after tech founders. Many choose to build their companies abroad, and a new bill taking shape at the Israel Tax Authority aims to change that. Under the proposal, graduates would be required to maintain Israeli tax residency and incorporate any company they found in Israel, for a full decade after discharge. Adv. Leor Nouman, Partner and Head of the Tax Practice at S. Horowitz, warns that there is a vast gap between incentivizing entrepreneurship and imposing draconian legal constraints on where founders may build their lives.

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