Tunisia: Taxes and Costs

Country Rating  »

Home ›  Middle East ›  Tunisia ›  Taxes and Costs

Tunisian law is pro-landlord in the free market segment

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	8.3%	14.9%	17.7%
Click here to see a worked example
Source: Disclaimer

Real estate earnings are taxable under the Tax Law (the Code de l'Impôt sur le Revenu des Personnes Physiques et de l'Impôt sur les Sociétés, Law N°89-114 of 30 December 1989, and subsequent amendments).

Personal income tax is payable by all earners, or by the head of the family for all family members.

Progressive personal income tax rates are as follows:

The taxable income is effectively 70% of the gross rent since 30% of the gross rent is deducted to cover income-generating expenses such as management, concierge payment, insurance, depreciation, maintenance and repairs. If justified by proper documents, actually incurred expenses (over the standard deduction) can also be deducted.

Real Estate Tax

Real estate tax is payable annually by the property owners in Tunisia. The tax is levied at 2% on the evaluated square meter value of the property, which is determined by the law every three years. The real estate tax will be levied on the rental income value of the property if it is less than the evaluated square meter value of the property.

Capital Gains Tax

Individuals are taxed on capital gains at the progressive income tax rates. The taxable gain is the difference between the real or assessed transfer price, and the original acquisition price, plus 10% of that price for each year of ownership, plus justifiable improvement expenses.

Tunisia - more data and information

• Guide to buying houses and registering property sales in Tunisia

Your Comments

Post a comment