Invest in Tunisia
Dec 8, 2023
A legal investment framework with international standards
Overview
The legal investment framework in Tunisia is in line with international standards, favorable to the free economy and offers flexible procedures and appropriate protection for private investors thanks to the new laws adopted, which has improved the investment conditions and attracted a significant flow of private, national and international investments.
INVESTMENT IS FREE in most economic sectors: A foreign investor can hold up to 100% of project equity without prior authorization in most sectors. Some non-exporting services must be authorized when foreigners hold the majority of shares.
Foreigners investing in agriculture can hold up to 66% of companies’ capital. Agricultural land can be farmed under long term leases.
Shares in operating Tunisian companies can be freely purchased up to 50% of capital without authorization.
FIXED DEADLINES FOR ALL AUTHORIZATIONS: The principle of Silence equivalent to administrative authorization is applied.
INVESTMENT FRAMEWORK BASED ON DIGITIZED SERVICES: regulatory framework for electronic exchanges facilitating administrative transactions, comprehensive investor's digital platform.
GUARANTEES FOR INVESTORS: Fair and equal treatment, guarantee of industrial and intellectual property, protection against non-commercial risks, freedom to transfer capital abroad.
Right to recruit foreign workers for all companies: Possibility of employing 30% of foreign executives up to the 3rd year and 10% beyond.
Real estate ownership for international investors
Wide range of fiscal and social incentives targeting in particular priority sectors with high added value, regional development and projects of national interest.
Appropriate PPP framework: Regulatory and institutional framework with simplified procedures and rules favoring the implementation of PPP projects.
a) Regulating texts
The main regulatory texts governing the investment climate in Tunisia
the investment law
law PPP N° 2015-49
the transverse law 2019-47
law 2017-8 (tax incentives)
decree 2017-389
b) Innovative initiatives
Tunisia is committed to attracting the best of the new wave of entrepreneurs. Tunisia has set up many initiatives to attract these companies, with an emphasis on a start-up-centric ecosystem with supportive policies, high availability of human resources and advanced ICT networks.
c) Industrial zones
d) Developed industrial zones
In Tunisia, there are 157 industrial zones covering a total area of 5000 ha. They are distributed in coastal zones, which are not subsidised, and regional development zones, which benefit from various subsidies according to the group.
The 157 zones are distributed as follows:
35 zones in Greater Tunis covering 1900 ha, i.e. 38% of the total area.
63 zones in the coastal regions covering 1100 ha, i.e. 22% of the total area.
59 zones in regional development zones covering 2,000 ha, i.e. 40% of the total area.
Legal forms
a) Indivudual business
Individual business managed by the solde trader
b) Partnerships
LLP Limited liability company
Company type : Limited company
minimum capital : 1 000 Dinars
Nb of shareholders : 2 or more not exceeding 50
Management : managed by your choice
ii. SLLP Sole ownership with Limited liability company
Company type : sole ownership with Limited company
minimum capital : 1 000 Dinars
Nb of shareholders : one
Management : managed by your choice
iii. SLLP Sole ownership with Limited liability company
Company type : Limited Company
minimum capital : 5 000 Dinars
Nb of shareholders : 7
Management : Board of directors or executive board and board of directors
Investment regimes
a) Fully exporting/non fully exporting company
Fully exporting companies are those:
The production of which is totally intended for export.
Which provide services abroad or in Tunisia with the aim to their use abroad.
Which work exclusively with the companies established in the economic activity parks and totally exporting.
Right to import the necessary production goods, free of all duties and taxes.
Possibility of selling on the local market up to 30% of turnover.
0% VAT on exports
Or you can be non fully exporting company.
b) Off shore regime
Totally exporting companies are considered non-resident (offshore) when at least 66% of the capital is held by non-Tunisian or foreign residents through the import of convertible currencies. The Company is considered as an "offshore" company when it has established its head office in a country in which it does not carry out any trade and whose top managers are not resident there.
Benefits :
Agreement to avoid double taxation between European and Maghreb countries and Tunisia
No VAT for payments received from abroad and purchases in Tunisia
10% tax on dividends not reinvested
Between 10% and 35% income tax (see Note N ° 1)
Only one person necessary (even a foreigner) to constitute the company
Bank confidentiality is legally respected
Between 0% and 16.57% rate of employer social charges for employees
No social charges for no-salary earning manager
A salary cost significantly lower than in Europe (minimum wage in Tunisia = € 133.35)
A minimum capital of 300 euros to constitute a company (the capital is not blocked)
Dividend transfer guarantee
Registration of your company in 72 hours
Financial benefits
Possibility of opening bank accounts in foreign currency or convertible dinars
Remote bank account management services
No limits on transactions abroad
Several withdrawal methods are available (international card, Swift transfer etc
Tax incentives
The deduction a share of their profits or income from the exploitation of the first four years of activity under the same conditions, is set as follows:
100% for the first year,
75% for the second year,
50% for the third year,
25% for the fourth year.
An additional 30% deduction for depreciation of exploitation machinery and equipment, with the exception of passenger cars other than those intended for exploitation, acquired or manufactured for extension purposes, the base of income tax or corporate tax is due for the first year from the date of acquisition, manufacture or start of use.
Tunisian Labor law
a) Fixed term or open term
The Labour Code provides for two types of contracts:
An open-ended contract (CDI)
Fixed-Term Contract (CDD)
The Fixed-Term Contract (CDD) can only be concluded in the following cases:
Completion of first established work or new work
Completion of work requesting huge extra work
Provisional replacement of a permanent worker who is absent or whose job contract is suspended
Completion of urgent work to prevent imminent accidents, to carry out rescue operations or to repair defects in the material, equipment or buildings of the company.
The performance of seasonal work or other activities for which, according to custom or by their nature, an open-ended contract cannot be used
A fixed-term employment contract may also be concluded, in cases other than those indicated in the preceding paragraph, by agreement between the employer and the worker, provided that the duration of the contract does not exceed four years, including any renewals; any recruitment of the worker concerned after the expiry of this period shall be on a permanent basis and without a trial period. In this case, the contract is concluded in writing in two copies, one of which is kept by the employer and the other delivered to the worker.
b) Employment of foreigners
Any company can recruit executives of foreign nationality up to 30% of the total number of its executives until the end of the 3rd year from the date of its legal creation or the date of entry into force of the actual activity determined by the company. This proportion must be decreased by 10% the 4th year from the said date. In any case, the company can recruit four foreign executives. Beyond the proportions or limits provided for in the previous paragraph, the company is subject, regarding the recruitment of foreign executives, to an authorization issued by the Ministry of Employment in accordance with the Labour Code provisions.
c) Working hours
The actual working time cannot exceed 48 hours per week. This time can be reduced but not less than 40 hours per week.
The duration of the effective working time may not exceed 48 hours per week or an equivalent limitation established over a period of time other than the week without the duration of this period exceeding one year.
This duration may be reduced to not less than 40 hours per week or an equivalent limitation established over a period of time other than the week and not exceeding one year, by collective agreements or by regulatory texts.
This may be done by collective agreements or by regulatory texts, adopted after consultation with the employers' and workers' trade unions.
d) Minimum Guaranteed Salary
The amount of the SMIG (Minimum Guaranteed Salary) for the 48-hour scheme has been increased to 429.312 dinars (equivalent in euro …)
Industrial proprety
Any invention of a product or of a manufacturing process may be protected by an invention patent which is issued by the industrial property body under the provisions of Law 2000-84 of 24 August 2000 relating to inventions' patents. According to this law the patent is granted for new inventions with an inventive activity applicable in industry.
