How to Buy Real Estate In Tunisia as a Foreigner
Who can buy property in Tunisia?
Yes, foreigners can buy real estate in Tunisia, but there are some restrictions and regulations to be aware of. Foreigners are generally allowed to purchase properties, especially in urban and tourist areas, but they cannot buy agricultural land. The process requires approval from the governor of the region where the property is located, which can take time. Additionally, while foreigners can buy apartments, houses, and other residential properties, purchases in coastal or strategic areas may require additional permissions. It's advisable for foreign buyers to work with a local lawyer and real estate agent to navigate the regulations and ensure a smooth transaction.
Do the research
Investing in Tunisia's real estate offers significant potential due to the country's growing economy and strategic location in North Africa. Tunisia provides relatively affordable property prices compared to other Mediterranean countries, making it an attractive destination for investors looking for cost-effective opportunities with room for value appreciation. The country’s developing tourism sector and its beautiful coastline also create demand for vacation homes and rental properties. Tunisia’s legal framework allows foreign ownership of real estate, particularly in designated areas, but the process can be complicated. Foreign buyers must obtain special authorization from the regional governor where the property is located. This step is necessary for non-Tunisians and can take several months.
Here are several sought-after destinations for real estate investments:
- Tunis - the capital of Tunisia, is the country’s political and economic hub, making it a prime location for both residential and commercial real estate investments. Popular areas like La Marsa, Gammarth, and the historical Medina offer a mix of modern apartments, luxury homes, and traditional Tunisian architecture. The city's proximity to the Mediterranean coast, combined with its urban amenities, makes it appealing to investors seeking both convenience and culture.
- Sousse - known as the "Pearl of the Sahel," is a major tourist destination thanks to its beautiful beaches and rich history. Popular areas like Port El Kantaoui attract investors looking for holiday homes, resorts, or rental properties, taking advantage of the strong tourist market.
- Hammamet - is another popular coastal destination, renowned for its beaches and relaxing atmosphere. It’s particularly sought after by investors interested in vacation properties or luxury villas. With its scenic views and growing real estate market, Hammamet remains a favored spot for both domestic and international buyers.
- Monastir - a smaller coastal city, is known for its charming historical sites and calm lifestyle. Real estate here tends to appeal to retirees or those looking for quieter beachfront properties. The town offers a variety of villas, apartments, and traditional homes, catering to a range of investment needs.
- Djerba - an island in southern Tunisia, offers a unique blend of traditional culture and modern development. It's a prime destination for those seeking tranquil retreats or investment in holiday homes. The island’s expanding tourism sector has boosted the demand for beachfront properties and boutique hotels.
Where to find properties online:
Financing
Foreigners are typically allowed to apply for mortgage loans in Tunisia, but they must meet certain requirements established by lending institutions. This often includes possessing a valid residence permit, demonstrating proof of income, and having a solid credit history. Foreign buyers usually face higher down payment expectations, which can range from 30% to 50% of the property's total value. Each bank has its own set of criteria for evaluating mortgage applications, so it is wise to explore various options to find the most favorable terms. Working with a local real estate agent or financial advisor can be advantageous in effectively navigating the mortgage landscape.
Due Diligence and Sales Contract
The due diligence process is a critical step that involves thoroughly assessing the legal, financial, and physical aspects of a property before completing the purchase. This comprehensive review ensures that the seller holds rightful ownership, that the property is free of any legal issues, such as disputes, debts, or liens, that could potentially jeopardize your ownership, and that the property complies with local regulations. Engaging a local attorney or notary is highly recommended to navigate this process effectively.
In Tunisia, the property sales contract is known as the "contrat de vente." This contract outlines the terms and conditions agreed upon by both the buyer and the seller, including the price, payment terms, and property details. Once both parties sign the document, it becomes legally binding. The process of purchasing property in Tunisia is generally similar for both local buyers and foreign nationals, though non-residents may encounter specific tax requirements or additional administrative steps. Foreign buyers should pay close attention to these factors, as they could impact the overall cost and timeframe of the transaction. It is advisable for foreign buyers to work with local legal and real estate professionals to ensure compliance with Tunisian laws and regulations, as well as to navigate any potential complexities specific to foreign ownership.
Property Buying Costs and Taxes in Tunisia
Transaction Costs |
||
| Who Pays? | ||
| Property Transfer Tax | 5.00% | buyer |
| Legal Fees | 0.50% - 1.00% | buyer |
| Notary Fees | 0.10% | buyer |
| Real Estate Agent's fee | 3.00% | buyer |
| Costs paid by buyer | 8.60% - 9.10% | |
| Costs paid by seller | nil | |
| ROUNDTRIP TRANSACTION COSTS | 8.60% - 9.10% | |
| Source: Global Property Guide | ||
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.
Currency:
Tunisia uses the Tunisian Dinar (TND). The exchange rate as of 02 Oct 2024 was US$1 = TND3.0438. The assumed property value is US$250,000, or approximately TND760,950 (760,945)
Transfer Tax:
Transfers of real property are subject to a 5.00% transfer tax levied on the property value.
Real Estate Agent's Fee:
The real estate agent's fee is around 3.00% of the property value and is paid by the buyer.
Notary Fee:
A notary fee is levied at 0.10% of the property value.
Legal Fees:
Are not expected to exceed 1.00% of property value.