Brexit will have widespread effects on the activities of Israeli companies and entrepreneurs in Europe. Israeli businesses in general, and high-tech companies in particular, have always been drawn to the UK: Today, more than 350 Israeli companies operate in the UK, employing thousands of employees in various sectors including high-tech, pharmaceuticals, medical products and financial services. In 2018, the value of trade between the UK and Israel reached a record $ 10 billion and the UK is the largest export destination of Israeli goods to European countries. More than 25 Israeli companies, with a combined market capitalization of over $ 8 billion, are traded on the London Stock Exchange.

Upon the UK’s departure from the European Union, and in the absence of a finalised free trade agreement between the UK and the EU, UK-based companies and entrepreneurs will find it harder to use Britain as a base for their Europe-wide operations. Many expect Brexit to, among other things, make it more difficult for Israeli companies in London to recruit foreign workers (including EU citizens), transfer digital data between the UK and the EU and, perhaps most significantly, trade across Europe free of new customs and taxes.

Ireland and the other leading European tech hubs are now looking to capitalise from the Brexit fallout by positioning themselves as attractive alternative destinations for Israeli companies wishing to maintain their European HQ operations.

Yes. Ireland is currently the only English-speaking country in the Eurozone and, following Brexit, it will remain the only English-speaking country in the EU.

Registering a company in Ireland is a simple, quick and a relatively easy process.

Establishing a new company takes about a week once the appropriate documentation has been sent to the Companies Registration Office

Each company must appoint at least one director who is ordinarily resident in the European Economic Area (EEA)

Companies in Ireland must also appoint a company secretary

Irish limited companies benefit from some of the lowest corporate tax rates in the European Union.

For more information on registering a company in Ireland – see our special guide on this topic (link) or contact our experts

The bad news for those Israeli companies that have already invested significant time and money in complying with the strict requirements on the GDPR is that the UK’s exit from the EU is likely to add a further layer of complication to their European operations.

Firstly, Brexit might make it more difficult to transfer personal data between the UK and the remaining EU countries. In addition, businesses operating in Israel must prepare for a scenario whereby the Information Commissioner’s Office (the British data protection regulator) ceases to exist as a lead supervisory authority for the purposes of the GDPR – as a result, in order to avail of the ‘one stop shop’ mechanism, Israeli companies should consider registering with a new European regulator in another country, a move that could later require the transfer of activity, infrastructure, workers or opening a subsidiary in the new country.

In this context, Ireland is emerging as the natural GDPR regulatory hub for foreign companies. The Irish Data Protection Commissioner stands out as particularly convenient for global businesses, given the use of the English language, experience in regulating tech multinationals such as Google and Facebook and the relatively low business costs in Ireland compared with other European destinations.

Yes. Ireland encourages immigration and relocation of foreign entrepreneurs and business owners. There are several immigration and relocation options available to self-employed persons to move their start ups to Ireland and establish their business in the country.