Last Updated:
Sep 16, 2008
The fine sandy beaches, the romantic oases, healthy weather, an exotic ambience, the ancient medinas and the ruins of Punic and Roman empires have made Tunisia one of the favorite destinations of millions of tourists around the world. In 2007, tourism brought more than 7 million foreigners, and TND3.08 (€1.72) billion foreign currency receipts.
Nevertheless residential prices in Tunisia are low compared with elsewhere along the Mediterranean. House prices range from TND450 (€250) per sq. m. to TND1,700 (€943) per sq. m.
Tunisia, a middle income country, has a stable political and economic environment. But it was only in 2006, that the real estate market was opened to foreign ownership. Several multi-billion dollar construction projects of the biggest Middle East property developers are already underway. Foreigners, however, cannot buy agricultural land. All real estate transactions are subject to government approval.
Nevertheless residential prices in Tunisia are low compared with elsewhere along the Mediterranean. House prices range from TND450 (€250) per sq. m. to TND1,700 (€943) per sq. m.
Tunisia, a middle income country, has a stable political and economic environment. But it was only in 2006, that the real estate market was opened to foreign ownership. Several multi-billion dollar construction projects of the biggest Middle East property developers are already underway. Foreigners, however, cannot buy agricultural land. All real estate transactions are subject to government approval.
Read Price History »
RENTAL YIELDS
Last Updated: Jan 18, 2005
Gross yields for properties in Tunis range from 4.8% to 7.43%, with prices at €2,100 to €2,900 per sq. m. Rent for a 70 sq. m. property is around €800 a month while rent for a 200 sq. m. property can reach €2,600 a month.
Properties within the suburbs of Tunis and new development have lower prices at €1,500 to €1,700. Beachfront developments and those within Carthage and Hammamat have prices from €1,600 to €1,800. Rent figures for new developments and beach properties are not readily available as they mainly cater for the local market and first time buyers.
Properties within the suburbs of Tunis and new development have lower prices at €1,500 to €1,700. Beachfront developments and those within Carthage and Hammamat have prices from €1,600 to €1,800. Rent figures for new developments and beach properties are not readily available as they mainly cater for the local market and first time buyers.
TAXES AND COSTS
Last Updated: May 04, 2009
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 8.3% | ||
| Click here to see a worked example | |||
Source: |
Disclaimer | ||
Rental Income: Rental income is taxed at progressive rates, from 15% to 35%. A standard deduction of 30% is given to cover income-generating expenses leading to effective tax rates ranging from 8% to 18%.
Capital Gains: Net capital gains are taxed at progressive rates in Tunisia.
Inheritance: Inheritance tax is levied at varying rates, depending on the relationship between the deceased and the heir. Spouses and direct descendants are taxed at 2.5%.
Residents: Tunisian residents are taxed on worldwide income at progressive rates, from 15% to 35%.
Capital Gains: Net capital gains are taxed at progressive rates in Tunisia.
Inheritance: Inheritance tax is levied at varying rates, depending on the relationship between the deceased and the heir. Spouses and direct descendants are taxed at 2.5%.
Residents: Tunisian residents are taxed on worldwide income at progressive rates, from 15% to 35%.
BUYING GUIDE
Last Updated: Nov 20, 2007
Roundtrip transaction costs are around 9.11%. The transfer tax is 5% while real estate agent’s commission is typically 3%. Various registration fees add up to around 1.11%. The buyer pays for all the costs.
LANDLORD AND TENANT
Last Updated: Aug 02, 2006
Rent: The rent can be freely negotiated. There is no legal maximum annual rent increase for free market tenancies, but any increase must be stipulated in the contract (typically, 5%).Tenant Eviction: At term, the lease may be renewed by tacit agreement for the same period, or ended, if a notice is given by either of the parties in advance through a bailiff or by registered mail. Once the notice is given, eviction is swift. The court system is highly efficient.
ECONOMIC GROWTH
Last Updated: Sep 16, 2008
One of Arab world's best reformers
The Republic of Tunisia, with an estimated population of 10.4 million, is considered one of the most stable countries in the Arab region. GDP per capita is around TND4,700 (US$3,760).In 2007, the economy grew 6.3%, up from 5.5% in 2006. Despite the global credit crunch, economic outlook for 2008 is still positive with 5.5% projected GDP growth.
Tunisia is the third most competitive country in the Arab World, based on the latest report of the World Economic Forum.
Though Tunisia is an Arab country, it is more Mediterranean in nature. With its prime spot in the Mediterranean coast, it serves as a gateway between Africa and Europe, especially France.
Tunisia gained its independence from France in 1956 under President Habib Bourguiba. The president consistently pursued secular policies. Polygamy has been abolished and free education is compulsory.
Tunisia is also known as the Arab country with the most liberated women’s rights law. Tunisian women have long had full legal status including the power to run and own businesses, own bank accounts and passports, to transmit citizenship if married to a foreigner.The current president, Zine El-Abidine Ben Ali, overthrew Bourguiba in a bloodless coup in 1987. Since then, Tunisia’s economic policies are more than ever geared towards liberalization and participation in the global market.
The country acceded to the GATT in 1990, is a founding member of WTO, and has an Association Agreement with the EU.
