Tax Rate on Rental Income
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Nonresidents are taxed on their Tunisian-sourced income. Married couples are taxed separately.
Income is taxed at progressive rates.
INCOME TAX 2023
|TAXABLE INCOME, TND (US$)||TAX RATE|
|Up to 5,000 (US$2,500)||0%|
|5,000 - 20,000 (US$10,000)||26% on band over US$2,500|
|20,000 - 30,000 (US$15,000)||28% on band over US$10,000|
|30,000 - 50,000 (US$25,000)||32% on band over US$15,000|
|Over 50,000 (US$25,000)||35% on all income over US$25,000|
|Source: Global Property Guide|
Rental income is included in the aggregate income and is taxed at progressive rates. A standard deduction of 30% of gross rent is given to account for income-generating expenses.
Itemized deduction of actually incurred expenses may be used over the standard deduction if justified by proper documents.
Capital gains are taxed at a flat rate of 15% if the property was held for less than 5 years before selling the property, and 10% if the property was held for more than 5 years before selling the property.
The taxable capital gains are calculated by deducting the following from the real or assessed transfer price: acquisition costs and incidental expenses, 10% of the acquisition cost for each year the property was held by the owner; and improvement costs.
Real Estate Tax
Real estate tax is payable annually by the property owners in Tunisia. The tax is levied at 1.5% 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.
The law provides for four categories of buildings, classified according to area (less than 100 sq. m, between 100 sq. m and 200 sq. m, between 200 sq. m and 400 sq. m and more than 400 sq. m).
Income and capital gains earned by companies are generally taxed at a flat rate of 15%. Income-generating expenses are deductible when calculating taxable income.