Tax System in Tunisia for Tunisians Living Abroad

Are you a Tunisian national living abroad and wondering about your tax rights and obligations in Tunisia? This comprehensive guide explains the key benefits, procedures, and exemptions available to Tunisians abroad — whether you’re planning to invest, return permanently, or clarify your tax status.

1. Buying Real Estate

Tunisians residing abroad are exempt from certain administrative charges relating to the purchase and registration of real estate. These include registration fees and real estate transaction costs. Beneficiaries must register with the Tunisian consulates in their country of residence to benefit from these real estate privileges.

It is highly recommended to consult a lawyer specialized in real estate law to assist Tunisians living abroad in completing the legal procedures and guaranteeing their rights.

Before buying, beneficiaries should check the condition of the property and make sure there are no legal disputes or problems that could affect the purchase process. To do this, make sure that the property is correctly and fully registered with the Land Registry, as registration constitutes solid legal proof of ownership, and keep all documents relating to the property, such as purchase contracts, gifts, wills and any other official documents.

For the purchase of built property intended for residential or business use, with the exception of agricultural land, Tunisians living abroad benefit from special advantages if they purchase real estate intended for business use and pay for the transaction in foreign currency. In this case, they are only required to pay a land registry tax of 1%.

In addition, Tunisians living abroad can register the purchase of a property at the fixed rate of 30 TND per page.

Documents Required to Complete the Registration Procedure When Signing the Purchase Contract

• Photocopy of all passport pages
• Copy of residence permit
• Copy of purchase contract
• Proof that the purchaser is resident abroad (purchaser’s movement card proving non-resident status at the Tunisian consulate)
• Proof of payment of the purchase price in convertible currency, such as presentation of a bank certificate justifying the transfer of the price. The buyer must therefore open an account in convertible dinars and transfer money from abroad to finance the property purchase via a Swift transfer.
• Proof of transfer of the price to the seller in Tunisian dinar (mandatory currency conversion); receipts for money transfers from the foreign bank account to the Tunisian bank account; documents proving the source of the transferred funds, such as income certificates or proof of savings.
• Production of a copy of the certificate of deposit of the investment declaration issued by the bodies in charge of investment, including the value of the property to be acquired within the investment and financing scheme, for projects relating to the exercise of an economic activity.

Such transactions are exempt from the additional registration duty of 2% or 4% payable on contracts with a value of five hundred thousand dinars or more.

Application to the Central Bank for an investment certificate.

Once the contract has been signed, the purchaser must file an application with the General Directorate of Public Accounting and Collection.

2. Purchase of Movable Property

Tax benefits for motorcycles or motor vehicles on temporary or permanent return to Tunisia.

Current system: Tunisians residing abroad may benefit, once only and non-renewably, from tax advantages in the context of the definitive return to import or purchase on the local market of a motorcycle or a passenger motor vehicle or a commercial vehicle with a gross vehicle weight not exceeding 3.5 tonnes, by opting, within a period not exceeding the date of registration of the customs declaration on the basis of which the tax advantage is granted, for one of the following preferential tax regimes:

• a. Total exemption from duties and taxes, with unlimited non-transferability.
• b. Partial exemption from duties and taxes, subject to the vehicle or motorcycle being non-transferable for one year from the date of registration, as follows:
  • By payment of 25% of the amount of duties and taxes due on passenger vehicles equipped with petrol engines with a cubic capacity not exceeding 2000 cm³ or diesel engines not exceeding 2500 cm³, as well as on commercial vehicles and motorcycles.
  • By payment of 30% of the amount of duties and taxes due on petrol passenger vehicles exceeding 2000 cm³ or diesel engines exceeding 2500 cm³.

The total or partial exemption is granted for a single motorcycle or a single passenger or commercial vehicle, including off-road vehicles, per household.

Tax benefits are granted subject to documentary proof of compliance with the following conditions:

• Residence abroad for at least two years, for the period immediately preceding the date of last entry into Tunisia.
• The total duration of stays in Tunisia must not exceed 120 days per 365-day period.
• The applicant has not previously benefited from preferential tax treatment in the same context.
• Undertaking not to apply for the same preferential tax treatment in the future.
• The motor vehicle or motorcycle must have been imported or acquired locally within a maximum of two years from the date of last entry into Tunisia.
• The motor vehicle or motorcycle must be the personal property of the beneficiary.
• The acquisition of the vehicle from stores operating under the fictitious warehousing regime must be carried out on the basis of prior authorization from the head of the relevant customs office, and payment must be made in convertible currency to the Tunisian supplier.

3. Tax on the Income of a Tunisian Resident Abroad from Foreign Sources

If the income is from a foreign source, the Tunisian resident abroad is not taxable in Tunisia. Such income is generally taxed in the country of residence, according to national law. However, some Tunisians residing abroad are required to pay taxes on their income, notably salaries and income from their activities. This is the case in the absence of double taxation agreements with certain countries. In this respect, Tunisians living in countries without bilateral tax agreements must prove to the Tunisian authorities that they have paid their taxes in those countries.

It should also be remembered that Tunisian Tax Law states that Tunisians residing abroad, who have filed tax returns in a foreign country and have the necessary supporting documents, cannot be forced to pay taxes in Tunisia on their foreign income.

In other words, Tunisians living abroad are not required to file tax returns in Tunisia for income earned abroad. They may, if necessary, obtain a certificate of non-tax liability from the relevant tax control office, based on the address shown on their national identity card. The certificate is available on the Ministry of Finance website and can only be issued to Tunisians living abroad who have foreign-source income: https://www.finances.gov.tn/sites/default/files/2019-08/non_imposition.pdf

In addition, Tunisia has signed bilateral agreements with several countries (France, Canada, Germany, Belgium, Italy, Switzerland, etc.) to avoid double taxation, with the aim of avoiding paying tax twice on the same income.

Example: The Convention between the Swiss Confederation and the Republic of Tunisia for the avoidance of double taxation with respect to taxes on income concluded on February 10, 1994:

• a) When a resident of Tunisia receives income which, in accordance with the provisions of this Convention, may be taxed in Switzerland, Tunisia shall deduct from the tax it levies on the resident’s income an amount equal to the income tax paid in Switzerland.
• b) However, the sum deducted may not exceed the fraction of the income tax calculated before the deduction, corresponding to the income taxable in the other Contracting State.

The same applies under the France–Tunisia convention of May 28, 1973, which avoids double taxation and provides rules for mutual administrative assistance. Tunisia deducts the tax paid in France, within the limits of what would be owed locally.

If you are a non-resident and your income is taxed in France, it is imperative that you contact the Tunisian tax authorities to find out about your tax obligations. Tunisia requires an annual declaration of all income, from both foreign and French sources, following the French model. Double taxation will be resolved in accordance with the tax treaty in place.

4. Compulsory Taxation

In the event of disagreement between the tax authorities and the taxpayer over the results of the preliminary or in-depth tax audit, taxation is imposed automatically.

Tax is also assessed automatically if the taxpayer fails to file the tax returns and documents required by law to establish tax liability, within a maximum period of thirty days from the date of formal notice.

The courts of first instance are competent to rule on appeals lodged against tax assessment orders or tax refunds. Appeals must be filed within 60 days from notification or expiry of the administration’s response period, with a written petition served on the tax authority.

Failure to comply within 30 days results in administrative tax penalties. If there is doubt over the value of real estate purchased in Tunisia, the tax administration may reassess the declared value after verification.

The presence of a lawyer is mandatory when the tax amount or restitution claim exceeds 25,000 TND. Taxpayers can only obtain relief by proving the accuracy of their declarations and income.

5. The Choice of Domicile in Tunisia for Tax Notifications

Taxes must be declared at the principal residence for individuals earning income from non-professional or foreign sources. In the absence of a domicile in Tunisia, tax must be declared at the source of income.

When a taxpayer relocates abroad, tax applies to income received up until departure. Non-residents must request a certificate of tax compliance before changing residence, repatriating goods, or transferring funds.

To ensure proper tax correspondence, Tunisians abroad must elect a tax domicile in Tunisia by sending a registered letter to the tax authority. Failure to do so may result in losing the right to challenge assessments.

Conclusion

The tax status of Tunisians living abroad involves specific exemptions, procedures, and compliance rules. Whether you’re investing, returning permanently, or simply staying informed, it’s essential to understand your legal rights and duties.

For tailored legal advice or tax assistance, feel free to contact Me. Mounir Baatour, an experienced attorney in Tunisian fiscal matters for expatriates.

Secure your legal standing. Understand your rights. Take action with confidence.