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U.S. Regulatory Climate Attracts Nearly Half Of Israeli Startups For Incorporation

by THEFUTURE.TEAM

Overview Of A Shifting Landscape

The Israel Advanced Technology Industries Association (IATI) has revealed a striking trend: nearly 45 percent of startups in 2025 are incorporating outside Israel. This marks a significant departure from 2022, when approximately 80 percent of new companies registered domestically. The shift is largely attributed to the relatively easier regulatory environment in the United States, with Delaware emerging as a preferred hub.

Government Policy And Economic Ripple Effects

The tide began to turn in 2023 when an anticipated overhaul of Israel’s judicial system prompted many startups to look abroad. Although the controversial reforms were set aside following the October 7, 2023 attacks and the subsequent conflict, the momentum for U.S. incorporation has persisted. Industry leaders have raised alarms about these trends, warning that the relocation of economic activity abroad could undermine the strong global reputation of Israel’s high-tech sector, which is a critical driver of national economic performance.

Industry Voices And Strategic Concerns

Dan Shamgar, chair of the IATI’s lawyers and accountants committee and partner at the Meitar law firm, emphasized, “Incorporation abroad gradually shifts economic activity out of Israel and erodes the brand of Israeli high-tech.” Shamgar highlighted that while U.S. policies in the past year have actively encouraged companies to register and operate domestically, economic policymakers in Israel have yet to implement comparable incentives. The absence of robust governmental support raises questions about maintaining the nation’s competitive edge in high technology, which encompasses roughly 20 percent of the country’s economic activity, 15 percent of its jobs, and more than half of its exports.

Challenges And The Road Ahead

Further concerns at the IATI conference include the sector’s reliance on foreign capital, with domestic investment lagging behind, and the critical need for renewed focus on health technology—a market segment that has recently experienced a downturn. These issues underscore the imperative for state intervention to ensure that Israeli high-tech companies continue to thrive on home soil.

Conclusion

The current trend of startups incorporating in the United States is symptomatic of broader regulatory and economic challenges facing the Israeli high-tech industry. As global competition intensifies, the call for policy reforms and strategic incentives in Israel becomes ever more urgent. How the government responds in the coming months will be pivotal for preserving the nation’s high-tech legacy and securing the future of its economic ecosystem.

Cyprus Expected Working Life Reaches 39.5 Years, Above EU Average

by THEFUTURE.TEAM

People in Cyprus are expected to spend 39.5 years in the workforce, around two years longer than the European Union average of 37.5 years, according to the latest Eurostat data for 2025.

The figure places Cyprus among the EU countries with the longest expected working lives.

Cyprus Ranks Above EU Average

Only a handful of member states recorded higher figures than Cyprus. The Netherlands topped the ranking at 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years, and Estonia at 41.5 years.

At the other end of the ranking were Romania with 32.7 years, Italy with 33.0 years, Bulgaria with 34.6 years and Greece with 35.3 years.

Gender Gap Remains Wider Than EU Average

Men in Cyprus are expected to remain in work for 42.1 years, compared with 36.7 years for women. The gap of 5.4 years exceeds the EU average gender gap of 4.1 years.

Across the bloc, Lithuania, Latvia and Estonia were the only countries where women were expected to spend longer in employment than men. Finland recorded the smallest positive gender gap at 0.7 years.

Italy posted the widest gap at 8.9 years, followed by Romania at 6.9 years, Greece at 6.7 years and Malta at 6.3 years.

Working Lives Continue To Lengthen

Between 2016 and 2025, expected working life in Cyprus increased by 3.5 years, placing the country among the strongest performers in the EU over the period. Men’s expected working life rose by 3.3 years, while women’s increased by 3.6 years.

Across the EU, every member state recorded an increase. Malta posted the largest gain at 4.9 years, followed by Hungary and Ireland at 4.2 years each, and the Netherlands at 4.1 years.

Malta’s increase was driven largely by women, whose expected working life rose by 7.8 years, the biggest increase recorded across the bloc.

By comparison, Romania, Spain, Italy, Germany and Austria recorded gains of two years or less over the same period.

Women’s Working Lives Increase Faster Across Europe

Women’s expected working life increased faster than men’s in most EU countries. Denmark, Romania, Sweden and Greece were the main exceptions.

In Cyprus, gains for men and women were broadly similar, alongside Bulgaria, Belgium and Slovenia.

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