Commercial news from Israel - 28th April 2025

Why are startup founders across Israel suddenly jealous of their Tel Aviv counterparts?

Rent expenses are among the heaviest financial burdens for any organization. Your total rental outlay typically consists of four components:

• Base rent for office space
• Municipal tax (Arnona - a name derived from Aramaic meaning "agricultural tax")
• Management fees
• Parking fees

Municipal tax (Arnona) makes up about 25% of the total office costs and goes straight to the local government. This is where Tel Aviv just changed the game completely.

The city's 2025 tax code now includes a special classification for startups and software companies.

The bottom line, startups and software companies can fill out one simple online form and instantly slash their tax burden.

Here's the link to the online form:

https://www5.tel-aviv.gov.il/TlvForms/TlvStartUpClassificationRequest

If you need any help with this procedure, we will be happy to connect you with an Arnona consultant from our office to optimize this process for you.

Commercial real estate in Israel

Vitania Ltd. and Amtsor Ltd. entered into a non-binding, in-principle outline for conducting negotiations and a period of exclusivity regarding the demolition of the existing buildings on the land they own at 10 Hasednaot Street, Herzliya, and the establishment of a new project zoned for employment, residences and commerce with a surface area of approximately 58,000 square meters to be built on the land, as well as additional uses as agreed upon by the parties.

A subsidiary of Electra Ltd. is expected to sign an agreement with Meshulam Levinstein Engineering and Contracting Ltd. and D.C. North Limited Partnership to establish a data center in Netanya, for NIS 450 million.

Commercial real estate overseas

A Romanian corporation owned by Hajj Europe Development C.S. Ltd. has entered into agreements to acquire the right to use part of a building with an area of approximately 9,655 square meters in central Bucharest, intended for rental for multiple uses, including offices, shops and a commercial center.

A subsidiary of the Property and Building Company Ltd., which owns the 10 Bryant Tower in Manhattan, New York, has signed a lease agreement with an American corporation from the Amazon group, according to which the corporation will lease approximately 30.5 thousand square meters for a 15-year lease period, for $29.5 million per year.

Real estate in the headlines

We embrace, rejoice and wish success to Idan Tzur-Magen on his joining our team of professionals.

The Rishon LeZion municipality will participate in financing the extension of the light rail line (Globes).

Modi's spearhead on Trump, logistics, Jerusalem and Petah Tikva (The Marker).

Guy Amosi: 'The 5-6 largest companies in the field are well-stocked with cash and less sensitive to this pressure' (Calcalist).