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Tunisia

We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in Tunisia with efficiency and assurance.

WHY TUNISIA?

Tunisia, officially the Republic of Tunisia, is a country in the Maghreb region of North Africa. It is bordered by Algeria to the west and southwest, Libya to the southeast, and the Mediterranean Sea to the north and east. Tunisia also shares maritime borders with Italy through the islands of Sicily and Sardinia to the north and Malta to the east. It features the archaeological sites of Carthage dating back to the 9th century BC, as well as the Great Mosque of Kairouan. Known for its ancient architecture, souks, and blue coasts, it covers 163,610 km2 (63,170 sq mi), and has a population of 12.1 million. It contains the eastern end of the Atlas Mountains and the northern reaches of the Sahara Desert; much of its remaining territory is arable land. Its 1,300 km (810 mi) of coastline includes the African conjunction of the western and eastern parts of the Mediterranean Basin. Tunisia is home to Africa’s northernmost point, Cape Angela. Located on the northeastern coast, Tunis is the capital and largest city of the country, which is itself named after Tunis. The official language of Tunisia is Arabic. The vast majority of Tunisia’s population is Arab and Muslim. Vernacular Tunisian Arabic is the most spoken language, and French serves as an administrative and educational language in some contexts, but has no official status.

The largest sector in the service industry, of course, is tourism, which directly or indirectly provides employment for approximately 300,000 residents. As a major source of foreign currency, this sector experiences steady economic growth. Tunisia has a developed economy, an important place in which there is agriculture, mining, energy, tourism and manufacturing. The country is now gradually removing barriers to trade with the European Union, as evidenced by the increase in imports (from 46% of GDP in 1997 to 54% in 2009). Priorities for future development are expanded privatization and further liberalization of investment laws to increase foreign investment and improving government effectiveness. In Tunisia it is extremely profitable to do business as there are strong fiscal incentives. In the early 90s the legislation in Tunisia was enacted providing for the grant of a large set of tax incentives for international companies engaged in tourism, food and agricultural industry (especially the fishing industry), machinery and electronic industries and service industries. The international trading company may be authorized to conduct business in the country with preferential tax treatment.

ADVANTAGES

Strategic & Market Access

• Geographic Hub: A gateway to Europe, Africa, and the Middle East, reducing logistics for nearshoring.
• EU Access: Strong preferential trade relationship with the European Union.
• Market Reach: Access to nearly 2 billion consumers in Africa, the Middle East, and the EU through free trade zones and agreements.

Financial & Tax Benefits

• Low Corporate Tax: Competitive rates (e.g., 15%), with full exemption in the first year for some activities, and 10% for exporters.
• Export Incentives: VAT/duty exemptions and compensation for raw materials/equipment for export-oriented goods.
• Profit Repatriation: Easy repatriation of profits for non-resident companies

Workforce & Infrastructure

• Skilled Labor: Educated, multilingual (Arabic, French, English) workforce, strong in IT, engineering, and technical fields.
• Developed Infrastructure: Modern ports, airports, roads, and specialized tech parks (cyber parks, technopoles).
• Cost-Effective Labor: Lower operational costs, especially for skilled tech roles.

Business Environment

• Investor-Friendly: Streamlined procedures, one-stop shops, and ongoing commitment to regulatory improvements.
• Support for FDI: Institutional assistance and bonuses for regional development, increased value, and sustainability.
• Diversified Economy: Growing sectors beyond traditional tourism and textiles, including electronics, automotive parts, and software.

TAX REGIME

Corporate Income Tax (CIT)

As of 1 January 2025, the general corporate tax rate has increased to 20% (up from 15%). Specific sectors are subject to higher rates:

  • 40% Rate: Applies to banks, financial institutions, and insurance/reinsurance companies.
  • 35% Rate: Applies to telecommunications operators, car dealers, hypermarkets, and the hydrocarbon sector.
  • 10% Rate: A reduced rate for agricultural, fishing, and craft activities.
  • Minimum Tax: A minimum corporate tax of 0.2% of local turnover (including VAT) is generally due, even if the company realizes a loss.

Personal Income Tax (PIT)

The 2025 Finance Law expanded the PIT scale to eight brackets (previously five) to increase progressivity. The rates for the 2026 fiscal year include a 1% Social Solidarity Contribution (SSC) for most brackets:

  • TND 0 – 5,000: 0% (SSC is 1% but may be 0% for certain low-income earners).
  • TND 5,001 – 10,000: 16% (including 1% SSC).
  • TND 10,001 – 20,000: 26% (including 1% SSC).
  • TND 20,001 – 30,000: 31% (including 1% SSC).
  • TND 30,001 – 40,000: 34% (including 1% SSC).
  • TND 40,001 – 50,000: 37% (including 1% SSC).
  • TND 50,001 – 70,000: 39% (including 1% SSC).
  • Above TND 70,000: 41% (including 1% SSC).

Wealth Tax (New for 2026)

  • The 2026 Finance Law (Art. 88) introduces an overhauled wealth tax levied every January 1st on the assets of natural persons:

    • Scope: Includes both real estate and movable assets (e.g., luxury cars, boats, securities).
    • Thresholds:
    • 3M – 5M TND: 0.5% rate.
    • Above 5M TND: 1% rate.
    • Exemptions: Primary residence and assets used for professional activity are generally exempt.

Value-Added Tax (VAT)

The standard VAT rate remains 19%. Reduced rates apply as follows:

  • 13%: Applies to petroleum products and low-voltage electricity (reduced to 7% for domestic use in 2025).
  • 7%: Applies to medical services, medicines, tourism activities, and transport of goods.
  • Exemptions: Essential foodstuffs and specific educational materials are exempt.

Social Security & Payroll

  • Employee Contribution: 9.68% of gross salary (includes a new 0.5% for an Unemployment Insurance Fund as of 2025).
  • Employer Contribution: 17.07% (standard) or 16.57% for wholly exporting companies.
  • Other Levies: Vocational Training Tax (1%–2%) and Social Lodging Tax (FOPROLOS) at 1% of gross salaries.

TUNISIA COMPANIES

Common Corporate Structures:

  • SARL (Société à Responsabilité Limitée): The standard Limited Liability Company, ideal for SMEs, requiring at least two shareholders and low minimum capital (around 1,000 TND).
  • SUARL (Société Unipersonnelle à Responsabilité Limitée): A single-member LLC, perfect for sole entrepreneurs, with similar capital requirements to the SARL.
  • SA (Société Anonyme): A Joint Stock Company for larger ventures, requiring at least seven shareholders, a higher minimum capital (around 5,000 TND), and a mandatory auditor.

Partnerships:

  • SNC (Société en Nom Collectif): A General Partnership where all partners have unlimited liability.
  • SCS (Société en Commandite Simple): A Limited Partnership with both general partners (unlimited liability) and limited partners (liability capped at their contribution).

Other Structures:

  • Entreprise Individuelle (Sole Proprietorship): A business run by one individual, where the owner bears full personal liability.
  • Branch Office/Representative Office: Used by foreign companies to establish a local presence, with branches undertaking commercial activities and representative offices for market study.

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

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