Property Taxes in Tunisia

Nonresident individuals are generally subject to Tunisian income tax on Tunisia-source income, including income derived from real estate located in Tunisia.

Married individuals are generally taxed separately for personal income-tax purposes.

Income Tax

From 2025, Tunisia applies the following progressive personal income-tax rates:

For 2026, a Social Solidarity Contribution (SSC) of 0.5% also generally applies to income subject to the progressive personal income-tax scale. Consequently, the combined marginal burden can reach approximately 40.5% in the highest bracket.

Rental Income Tax

Rental income earned by a nonresident individual from real estate located in Tunisia is subject to Tunisian personal income tax.

The taxable rental-income base is generally calculated as 70% of gross rental receipts, effectively providing a 30% standard deduction against gross rent.

The resulting taxable rental income is then subject to Tunisia's progressive personal income-tax rates of 0% to 40%, together with the applicable Social Solidarity Contribution.

For a standard residential investment property, the calculation can therefore generally be expressed as:

Gross rental income
– 30% standard deduction
= taxable rental income

The progressive personal income-tax rates are then applied to the resulting taxable amount.

Using an exchange rate of approximately TND 2.9614 per US dollar, the estimated total annual tax is approximately $2,988, $17,964 and $38,376, respectively. This represents effective tax burdens of approximately 16.6%, 25.0% and 26.7% of gross rental income.

Capital Gains Tax

Capital gains derived by an individual from the disposal of qualifying Tunisian land and buildings are subject to a specific real-estate capital gains tax regime.

Where the property is sold within five years of acquisition, the taxable capital gain is generally subject to tax at 15%.

Where the property is sold after more than five years of ownership, the applicable rate is generally reduced to 10%.

These rates apply to both resident and nonresident individuals.

The taxable gain is determined under the specific Tunisian real-estate capital gains rules, taking into account the property's acquisition price and qualifying acquisition, improvement and other adjustments permitted under Tunisian tax legislation.

Capital gains from the disposal of qualifying immovable property generally must be declared within three months following the sale.

Corporate Tax

The standard corporate income-tax rate is 20%, increased from the previous general rate of 15%.

A preferential 10% rate continues to apply to certain specifically qualifying activities.

For an ordinary company holding and renting investment real estate, the 20% standard corporate income-tax rate is therefore the appropriate general reference, subject to the company's activities and circumstances.

Qualifying business expenses are generally deductible in determining taxable corporate profit.

Property Buying and Selling Taxes/Costs

Tax on Built Real Estate

Owners of built real estate in Tunisia are generally subject to an annual municipal Tax on Built Real Estate (Taxe sur les Immeubles Bâtis – TIB).

The tax is not calculated simply as a fixed percentage of the property's market value. Instead, the taxable base is determined principally by reference to the property's annual rental value, which is estimated using the building's covered surface area and a reference price per square meter established under the applicable rules.

Buildings are generally classified into four categories according to their covered surface area:

• up to 100 square meters;

• more than 100 and up to 200 square meters;

• more than 200 and up to 400 square meters; and

• more than 400 square meters.

The applicable municipal tax rate depends on the number of public services available in the area where the property is situated. Rates generally range from 8% to 14% of the taxable rental value, increasing according to the level of municipal services provided.