Investing in Tunisian Real Estate: An Expat’s Guide

Published on November 10, 2025 and written by Cyril Jarnias

Investing in real estate abroad can be a lucrative and rewarding adventure, especially for expatriates eager for new opportunities. Tunisia, with its dynamic and growing real estate market, represents a prime destination.

This appealing Mediterranean country offers not only a pleasant living environment but also significant financial benefits that attract more and more international investors. Expatriates discover a unique blend of modernity and tradition, while enjoying a favorable cost of living and accommodating legislation for foreign investors.

By exploring the secrets of real estate investment in Tunisia, this article guides expatriates through each step of the process, enabling them to maximize their return on investment while minimizing potential risks.

Understanding the Tunisian Real Estate Market for Expatriates

Current Trends in Tunisia’s Real Estate Market

The Tunisian real estate market in 2025 shows continuous price increases, with an average increase of 4 to 5% in price per square meter for apartments over one year. Older properties dominate the supply (about 68%), while new apartments show positive momentum but remain in the minority. The available floor areas are increasingly optimized, particularly to meet the demand for compact and affordable housing. Demand focuses on S+2 and S+3 apartments, mainly between 90 and 180 m².

Cities Most Sought After by Expatriates

City	% of Demand	Main Assets
La Marsa	20%	Seaside proximity, urban life, expatriates
Ariana	11.9%	Residential neighborhoods, schools
Sfax	9%	Economic dynamism
Hammamet	9%	Seaside resort, tourist appeal
Djerba	n/a	Mild climate, seasonal real estate
Les Jardins d’El Menzah, Riadh al Andalous, Boumhel	n/a	Up-and-coming neighborhoods, notable increases

Types of Properties Available for Expatriates

• Older or new apartments (S+2, S+3)
• Villas with swimming pools (especially on the coast and in Djerba)
• Buildable land
• Secure high-end residences

Average Prices by Region (Apartments)

Region	Average Price per m² (2025)
Northern Tunis	3,200 – 4,500 TND
La Marsa	4,500 – 6,000 TND
Hammamet	3,000 – 4,500 TND
Sfax	2,500 – 3,200 TND
Djerba	2,000 – 3,000 TND
Kélibia (villa/pool, seasonal rental)	470 – 1,000 TND/night

Local Regulations for Foreigners

• Non-resident foreigners can only purchase residential real estate, after obtaining authorization from the regional governor.
• Agricultural land is generally inaccessible to non-Tunisians.
• The procedure can be lengthy (up to 12 months), and the purchase must be made via bank transfer.

Taxes and Additional Costs

• Value Added Tax (VAT): 7% for new properties.
• Notary fees: 1 to 2% of the purchase price.
• Registration fees: 5% for foreigners.
• Real estate agency fees: 2 to 3%.
• Administrative and bank fees: variable depending on the bank.

Advantages of Investing in Tunisia

• Proximity to Europe (direct flights to Paris, Milan, etc.)
• Pleasant Mediterranean climate year-round
• Dynamic market with capital gains potential
• Prices still lower than other Mediterranean markets
• Tourist appeal and infrastructure development

Challenges and Risks

• Exchange rate fluctuations (particularly euro/dinar)
• Lengthy and complex administrative procedures
• Purchase restrictions for foreigners on certain types of properties
• Lack of transparency in some transactions
• Local market fluctuations depending on the political and economic context

Precautions to Take When Buying

• Hire a specialized lawyer to verify the conformity of property titles and the legality of the transaction
• Rely on a licensed real estate agent to facilitate the search and negotiation
• Verify the authenticity of documents and the absence of debts or mortgages on the property
• Prefer registered properties and recognized developers
• Avoid untraceable cash payments

Financing Options for Expatriates

• Local mortgage: often reserved for residents or Tunisians living abroad
• International financing: through foreign banks or personal funds
• Cash payment: generally required for non-residents, given banking restrictions

Useful Resources

• Real estate platforms: Mubawab.tn, Tayara.tn, ImmoTunisie.com
• Specialized agencies: Century 21 Tunisia, RE/MAX Tunisia, Kahimm.com
• Legal advisors: Tunisian law firms specializing in real estate
• Blogs and buying guides: Matunisie.com, La Presse Immobilier

Advice

Before any commitment, it is imperative to consult a local professional and thoroughly research the current legislation.

Legal Aspects and Administrative Procedures for Real Estate Purchase in Tunisia

Legislation and Restrictions for Foreigners

Real estate purchase by foreigners in Tunisia is strictly regulated.

• Prior authorization from the governor is mandatory for any residential acquisition. Without this authorization, the sale is void.
• Purchase of agricultural land is prohibited for foreigners. Only Tunisians or companies with Tunisian capital can own it.
• Foreigners can purchase properties in authorized urban or tourist zones, according to local development plans.
• Investments in industrial or tourist land and premises are permitted under conditions, within the framework of direct investment operations.
• Exceptions: Algerians and Libyans benefit from a specific regime (no governor authorization for properties above a certain amount and payment in foreign currency).

Summary Table of Restrictions

Property Type	Accessibility for Foreigners	Main Conditions
Residential (urban)	Yes, with governor authorization	Authorized zone, payment in foreign currency
Agricultural	No	Total prohibition
Industrial	Yes, within investment framework	Compliance with urban planning code
Touristic	Yes, within investment framework	Compliance with urban planning code

Key Steps in the Acquisition Process

1. Search and selection of the property (verification of the authorized zone).
2. Signing a preliminary contract (promise to sell), conditional upon obtaining administrative authorizations.
3. Administrative file to be prepared:
   • Passport copy
   • Recent criminal record (especially for French nationals)
   • Proof of fund origin (international transfer, exchange slip, etc.)
4. Submission of the authorization request to the competent governorate.
5. After obtaining the governor’s authorization:
   • Request for authorization from the Central Bank of Tunisia (BCT) for the fund transfer.
6. Signing of the final deed of sale before a notary or lawyer.
7. Registration of the sale and land registry formalities.

Documents Required at Each Stage

• Preliminary contract: passport, contact details of parties, property description, amount and payment terms.
• Governorate file: preliminary contract, passport, proof of funds, criminal record.
• Finalization: governor authorization, BCT authorization, notarized deed, proof of payment in foreign currency.

Role of Lawyers and Notaries, Importance of Due Diligence

• The lawyer ensures verification of ownership (absence of mortgage, conformity of land title, cadastral situation).
• They prepare contracts, secure funds in an escrow account, and guide the administrative procedure.
• The notary registers the sale and ensures its legal publicity.
• An exhaustive due diligence (verification of title, charges, urban planning compliance) is essential to avoid disputes and nullities.

Taxes and Fees Associated with Purchase

Expense Item	Indicative Amount / Calculation
Registration fee	5% of purchase price (excluding exceptions)
Notary fees	1-2% of purchase price
Lawyer fees	Variable (often flat fee or % of price)
Administrative/file fees	0.5 to 1% of price or flat fee
Capital gains tax (resale)	According to Article 27 of the IRPP and IS Code

Specific Administrative Procedures for Non-Residents

• Obligation to obtain the governor’s authorization before any acquisition.
• Authorization from the Central Bank of Tunisia for any operation involving foreign funds.
• Declaration of fund origin and retention of transfer proof.
• After purchase, obligation to declare property ownership to the tax and land administration.

Tax Implications for Expatriates

• Annual property tax: calculated based on the cadastral value of the property.
• Tax on potential rental income: subject to income tax in Tunisia (progressive scales or flat-rate regime).
• Capital gains tax upon resale: applicable to the difference between sale price and purchase price, after deduction for holding period.

Practical Tips to Secure the Purchase

• Verify that the property is located in an authorized urban or tourist zone.
• Always engage an independent local lawyer to verify the land situation and prepare the deeds.
• Demand transparency on fund origin and retain all proof of foreign currency transfer.
• Do not make any final payment before obtaining all required authorizations.
• Plan for sometimes lengthy administrative delays (several months).
• Stay informed about evolving laws and consult official websites (Ministry of State Domains and Land Affairs, Central Bank of Tunisia).
• Seek advice from specialized professionals (lawyers, notaries, accredited real estate agencies).

Useful Resources

• Ministry of State Domains and Land Affairs (for lists of authorized zones)
• Central Bank of Tunisia (for fund transfer procedures)
• Tunisian Bar Association (to find a lawyer specialized in real estate law)
• Tunisian Notaries Order (for list of authorized notaries)
• Franco-Tunisian or bilateral chambers of commerce (for expatriate advice)

For any acquisition, it is recommended to surround yourself with local professionals and rigorously follow the current administrative and legal procedures.

Financing Options and Tax Implications for Expatriates

Real Estate Financing Options for Expatriates in Tunisia

Financing Option	Specific Conditions for Expatriates	Initial Deposit Requirement	Typical Interest Rate	Particularities
Local Bank Loans	Accessible to Tunisians Residing Abroad (TRE) and, under conditions, to foreigners. Need for a non-resident account. Procedures adapted for expatriates.	Generally 20 to 30% of property price	Fixed or variable rates, often competitive for the diaspora, between 6% and 8% for locals; for expatriates, sometimes preferential rates	Term up to 25 years, guarantees required (mortgage, guarantee, proof of stable income)
International Banks	Rarer. Some foreign banks may finance purchases in Tunisia, especially if the expatriate maintains a banking relationship with their country of origin.	Often higher initial deposit, typically 20 to 40%	Rates generally higher than local banks, between 4% and 6% for the best profiles	More complex application, possibility of foreign currency credit
Developer Payment Schedules	Frequent for off-plan or new purchases. Direct agreement with the developer, without going through a bank.	Initial down payment of 20 to 30% of property price	No interest rate but management fees or a markup on the overall price	Staggered payment over 1 to 5 years, negotiation flexibility

Procedures and Conditions for Obtaining Financing

• Open a bank account in Tunisia (non-resident account in foreign currency or convertible dinars).
• Provide a complete file: passport, residence permit, proof of income, bank statements, preliminary sales agreement.
• Justify the origin of transferred funds.
• For non-Tunisian foreigners: obligation to obtain prior authorization from the Central Bank of Tunisia for real estate acquisition.

Tax Implications for Foreign Buyers

Real Estate Taxation	Rate/Conditions	Observations
Registration Fees	Approximately 5% of acquisition price	Paid upon purchase, varies by property nature
Annual Property Tax	Low, depends on the municipality	Low compared to other countries
Real Estate Capital Gains	Tax on capital gains upon resale	Rate varies by holding period; possible exemption if property held for more than 5 years as primary residence
Double Taxation	Depends on bilateral tax treaties	Tunisia has signed treaties with many countries, allowing avoidance of double taxation on property income and capital gains
Fund Transfer upon Resale	Investment slip required to repatriate funds	To request upon purchase, essential to recover funds upon resale

Tax Advantages for Expatriates and Practical Tips

• Tunisians Residing Abroad can benefit from more advantageous financing conditions (reduced rates, streamlined procedures, personalized services).
• Some developers offer interest-free payment schedules or discounts for cash payment.
• Tax treaties between Tunisia and the expatriate’s country of residence may allow deduction or exemption of certain taxes on capital gains or rental income, subject to correct declaration in both countries.
• It is advisable to:
  • Check for a tax treaty between Tunisia and your country of residence.
  • Request the investment slip upon purchase to guarantee the possibility of fund repatriation.
  • Consult a tax specialist to optimize cross-border taxation and comply with all reporting obligations.

Key Takeaways

Expatriates wishing to invest in real estate in Tunisia have several financing options, each with its own requirements and tax implications. Support from professionals (banks, developers, tax specialists) is highly recommended to maximize benefits and avoid administrative or tax pitfalls.