Key questions to clarify, documents to prepare and the way we approach the matter before an irreversible decision is made.
A short introduction to our process: how the initial review begins, what we need to understand and what happens after your first inquiry.
Eligibility depends on the type of facility, the number of accommodation units, the rights to land, the planning situation, the priority area and the stage at which the project is located.
We centralize the legal and regulatory process, review the project's suitability for the procedure, coordinate the required materials with the professionals and accompany the entrepreneur in the submission and handling with the Ministry of Tourism.
Entrepreneurs and property owners wishing to establish a hotel, expand an existing hotel or convert a building for hotel use may be eligible for an investment grant under the Law for Encouragement of Capital Investment and Tourism Ministry Procedures. Acceptance of the grant is not automatic: it requires adjustment to the procedure conditions, timely submission, compliance with the planning requirements and physical standards, proof of financial ability and approval of the Tourism Investment Administration.
Our legal service is designed to manage the process for the entrepreneur: from the initial feasibility check, through the route selection and facility classification, to the preparation of the application file, its submission and advising on handling with the Ministry of Tourism.
Procedure 01/2026 for the establishment and expansion of hotels establishes a basic grant at a rate of 20% of the known investment in the project. Therefore, there is no basis to present 28% as a fixed grant for each hotel. A rate of 28% can only be accepted when a supplementary track or dedicated administrative grant is applied to the project at an 8% rate, by virtue of a specific decision or procedure and subject to their conditions and budget.
The basic grant is also not necessarily calculated from the full cost of the project. The recognized investment is determined by the lower of the recognized investment ceiling, the estimate of the Ministry of Tourism engineer and the scope of the investment requested in the request. For example, if the project costs NIS 30 million but only NIS 20 million is recognized, a 20% grant will be calculated from NIS 20 million and will be NIS 4 million.
A facility that includes at least 25 accommodation units, at least 80% of which are rooms. The balance can include studio units and suites. Public and service spaces are also required depending on the hotel level and its urban or recreational nature.
A facility that includes between 11 and 24 accommodation units, at least 80% of which are rooms. The facilities allow the hotel a smaller and more flexible scope of public and service space.
The Suites Hotel has at least 25 units and the Suites Hotel has 11 to 24 units. In both cases at least 80% of the accommodation units are suites, and the remainder can be studio units.
A facility that includes at least 25 accommodation units, most of which are attached to land, low-density construction, and combined with a supply of sports and recreation activities and public and service spaces.
A youth hostel or backpacking hostel is tested according to the designated standards. For setting up a project or extension procedure, an additional 25 new beds are required; at the hotel, an additional 11 new rooms are required.
A facility of up to 10 units is usually defined as a rural or urban accommodation unit and not as a hotel for the purpose of the construction and expansion procedure. It should not be assumed that a guest house, villa or vacation apartment is eligible for the route simply because they are used for tourist accommodation.
The corporation's documents and signatures, the shareholders' documents, draft or real estate rights agreement, zoning and permit documents, architectural plans, investment estimate, business plan, financial ability approval, funding sources, statements regarding previous grants and a guarantee in the required version. The exact list varies according to the track and project.
The usual deadline for submitting applications under Procedure 01/2026 was June 15, 2026 at 12:00 and has passed. The procedure includes a limited mechanism for the application submitted after the deadline, which may allow for an examination of the date of investment recognition if it met the conditions, but requires renewal and completion of the application within the framework of the subsequent procedure and does not guarantee approval or budget. Before making an investment, the current status and the possibility of recognizing it must be checked.
The information is general and as of the date of the update. The provisions of the law, the order, the priority area map, the procedure and the authorisation writing that are binding on the date of submission are increased. There is no commitment to receive a grant, and each project requires individual legal, planning and economic examination.
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Karin Amsalem, a professional and thorough attorney of the highest level! Represented us in the process of selling a plot of land that we won in a tender. This is a complex process that includes registering lease rights in the Land Registry, payments to the Land Registry such as consent fees, refunding subsidies for housing and construction, as well as handling the appreciation tax, which includes many expenses. Karin managed the entire process with professionalism, accuracy and attention to detail, while fully protecting our interests as sellers. Throughout the entire process, we felt that we had someone to trust. Highly recommend her!
