On Jerusalem Day, government passes incentive plan to support opening foreign embassies in capital

Nava Freiberg is The Times of Israel's deputy diplomatic correspondent.

Prime Minister Benjamin Netanyahu, second from left, leads a special cabinet meeting on Jerusalem Day in the City of David, outside Jerusalem's Old City, May 26, 2025. (Flash90)
Prime Minister Benjamin Netanyahu, second from left, leads a special cabinet meeting on Jerusalem Day in the City of David, outside Jerusalem's Old City, May 26, 2025. (Flash90)

Following a special cabinet meeting in East Jerusalem on Jerusalem Day, the government has approved a resolution proposed by Foreign Minister Gideon Sa’ar to assist and financially support foreign countries in establishing or relocating their embassies to Jerusalem, Sa’ar’s office announces in a joint statement with Minister for Jerusalem Affairs and Jewish Heritage Meir Porush.

“This resolution will significantly strengthen the diplomatic efforts I’ve been leading on this issue,” says Sa’ar in the statement.

Porush adds: “We continue our efforts to strengthen Jerusalem on the diplomatic level as well. We will keep encouraging and facilitating the countries that recognize Jerusalem as Israel’s capital to translate that recognition into action.”

Most countries do not recognize Jerusalem as the capital of Israel and base their embassies in Tel Aviv, often opening smaller consulates in Jerusalem. Currently, six countries — the US, Guatemala, Honduras, Kosovo, Papua New Guinea and Paraguay — have embassies in Jerusalem.

The decision, which includes a multi-year commitment from the Israeli government and all relevant ministries, will invest millions of shekels into an incentive package, providing partial funding of costs related to moving embassies to Jerusalem, as well as housing and planning solutions, according to the statement.

Fiji is expected to open an embassy in the capital in September, Paraguay reopened its Jerusalem embassy in December, and earlier this month, Ecuador inaugurated an innovation office in Jerusalem as an extension of its embassy in Tel Aviv, Sa’ar’s office adds.

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