Buying costs in Tunisia are low
Taxation Researcher | November 22, 2019
How high are realtors´ and lawyers´ fees in Tunisia? What about other property purchase costs?
|Real Estate Agent´s fee||3%||buyer|
|Costs paid by buyer||9.10%|
|Costs paid by seller||nil|
|ROUNDTRIP TRANSACTION COSTS||9.10%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Tunisia?
Foreigners are allowed to purchase real estate property in Tunisia. Until recently, Tunisian government officials discouraged investment in the real estate sector. Nonetheless, this policy seems to be being relaxed, though all real estate transactions are still subject to approval.
Agricultural land cannot be bought by foreigners. Leasing of (agricultural) land up to 40 years, however, is allowed.
A preliminary contract of sale ("promesse de vente" or promise of sale) is executed between the contracting parties. Whether there are any legal encumbrances on the property should be first checked at the Regional Land Ministry.
The preliminary contract should include:
- the name of the contracting parties;
- address and other identification details of the property;
- specification of what costs the seller and purchaser bear;
- presence of tenant and date of vacancy (if relevant);
- "delay of realization of sale", which refers to a grace period, during which the purchaser can fulfill needed documentation and secure funding.
- a deposit equivalent to 10% of the sale price is expected.
The contract is then prepared by a lawyer or a notary after consultation with the property registry services. In either case, the contract still needs to be notarized, and the contracting parties should be present.
After payment of the transfer tax and registration fee, the purchaser files an application for a title deed at the Land Property Administration, and doe a property certificate from the Regional Land Registry.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property - lawyers´ fees, notaries´ fees, registration fees, taxes, agents´ fees, etc.
Transfers of real property are subject to a 5% transfer tax levied on the property value.
Real Estate Agent´s Fee:
Real estate agent´s fee is around 3% of the property value.
Registration fee is levied at 1% of the property value.
Contract fee is levied at 0.10% of the property value.