The commercial entity
The Dutch BV can be the European contract party for deals with large customers. Your customers then sign with a company under EU law. The BV can also answer questions from purchasing departments on where data is stored (the answer buyers look for). Some deals also require a certain level of cybersecurity. See the NIS2 requirements. The notary can set up the BV remotely, usually within one week once all documents are complete (the remote incorporation process). Trade between the EU and Israel also falls under the EU-Israel association agreement.
Hiring the team
The Dutch BV can hire people from all over the world under the highly skilled migrant scheme (kennismigrant). As one sponsor, it can bring Israeli engineers to the Netherlands and hire European engineers. See the hiring guide. Employees who relocate to the Netherlands can often use the 30% ruling. See the relocation guide. If real development work takes place in the Netherlands, Dutch tax benefits for research and development apply. See the WBSO and the 9% innovation box. You can use both within the standard group structure. See the structure guide.
Is your group setting up a Dutch entity? See setting up a Dutch subsidiary for what you need, how long it takes and what the parent company must sign.
The group structure
In a common structure, the group does its research and development in Israel and keeps its head office there. The Dutch BV handles sales and delivery in Europe. The terms between the companies are set out in writing, and the tax treaty between the Netherlands and Israel applies. See the treaty overview. Groups with a US parent company add the Dutch BV under the existing structure in the same way. See how US-backed groups add a Dutch BV.