Tax benefits for Tunisian expats buying abroad: Conditions and details

In the context of a dynamically evolving Tunisia, real estate investment emerges as a particularly significant opportunity for Tunisians residing abroad. Central to this opportunity is a notable fiscal advantage: a preferential 1% registration rate for real estate acquired by this specific category of citizens. In this article, Almindhar meticulously explores the essential conditions for leveraging these tax benefits, emphasizing the strategic role of real estate in stimulating investment and strengthening economic ties between Tunisia and its global diaspora.

• I-Conditions to Benefit from the Advantages
• 1-Payment in Foreign Currency
• 2-Residing Abroad for a Period of Two Years or More
• 3-Acquisition of an Already Constructed Real Estate Property
• II-Registration Fees for Residential Land
• 1-For up to 120 m2: 1%
• 2-From 120,001 to 300 m2: 2%
• 3-From 300,001 to 600 m2: 3%
• 4-Beyond 600 m2: 5%
• III-Registration Fees for New Real Estate Properties
• 1-Sale Price < 500,000 TND
• 2-Sale Price: 500,000 – 999,999 TND
• 3-Sale Price > 1,000,000 TND
• IV-Registration Fees for Existing Real Estate Properties
• 1-Selling Price up to 499,999 TND
• 2-Selling Price: 500,000 – 999,999 TND
• 3-Selling Price > 1,000,000 TND
• V-Conclusion

I-Conditions to Benefit from the Advantages

1-Payment in Foreign Currency

The first mandatory condition to benefit from the advantageous registration rate is the obligation to settle the entire acquisition amount in foreign currency. This strategic measure aims to encourage foreign investments in the Tunisian real estate sector, thereby enhancing the financial resilience of the market and fostering the economic development of the country.

2-Residing Abroad for a Period of Two Years or More

The second condition requires the buyer to have resided abroad for a minimum period of two years. This requirement goes beyond a mere administrative formality; it acknowledges and rewards the significant economic and social contribution of Tunisians residing abroad. By favoring this category of investors, Tunisia aims to strengthen ties with its diaspora and stimulate sustainable economic growth.

3-Acquisition of an Already Constructed Real Estate Property

The third condition specifies that the purchase must involve an already constructed real estate property, intended either for residential purposes or for economic activities. This strategic direction aims to invigorate the existing real estate market, promoting optimal use of available resources. By focusing investments on ready-to-occupy properties, this condition stimulates local economic activity by creating employment opportunities and generating positive impacts for surrounding communities.

II-Registration Fees for Residential Land

When acquiring residential land, registration fees vary based on the land’s surface area, reflecting a progressive approach :

1-For up to 120 m2: 1%

This first tier, applicable to land up to 120 m2, is subject to a favorable registration rate of 1%. This measure promotes property ownership for smaller areas, thereby fostering diversity in the real estate market.

2-From 120,001 to 300 m2: 2%

For land with an area ranging from 120,001 m2 to 300 m2, the registration rate slightly increases to 2%. This gradual progression aims to maintain financial incentive while reflecting proportionality with the size of the land.

3-From 300,001 to 600 m2: 3%

The third tier, applicable to land ranging from 300,001 m2 to 600 m2, sees the registration rate increase to 3%. This gradual increase corresponds to the growing size of the land, ensuring fair taxation while continuing to encourage investments in properties of intermediate size.

4-Beyond 600 m2: 5%

Finally, for land exceeding 600 m2, the registration rate reaches 5%. This measure aims to reflect the more substantial dimension of the property while recognizing the potential contribution of these investments to larger real estate projects. This progressive structure of registration fees encourages diversity in investment choices, fostering both small residential properties and larger real estate projects.

III-Registration Fees for New Real Estate Properties

When acquiring a new real estate property from an authorized developer in Tunisia, registration fees are calculated based on the purchase price, with a detailed progressive fee structure outlined below :

1-Sale Price < 500,000 TND

A 1% amount of the sale price is levied for the CPF (Land Promotion Center). Additionally, a fixed fee of 30 TND per page applies. This initial tier encourages investments in affordable real estate, thereby enhancing housing accessibility.

2-Sale Price: 500,000 – 999,999 TND

For real estate properties with a sale price between 500,000 and 999,999 TND, a 1% rate of the sale price is collected for the CPF. Additionally, a complementary fee of 3% is applied to the portion of the amount exceeding 500,000 TND, with an additional complementary fee of 2%. This structure encourages investments in properties of intermediate range.

3-Sale Price > 1,000,000 TND

For real estate properties with a sale price exceeding 1,000,000 TND, the 1% rate of the sale price for CPF remains. Additionally, a complementary fee of 3% is applied to the portion of the amount exceeding 500,000 TND, with an additional supplementary fee of 4%. This measure encourages more substantial investments while optimizing tax revenues.

IV-Registration Fees for Existing Real Estate Properties

When acquiring old real estate properties, registration fees are established based on the sale price, reflecting a proportional approach. The rates are as follows :

1-Selling Price up to 499,999 TND

For old real estate properties with a sale price up to 499,999 TND, a rate of 6% is applied for registration fees. This measure aims to maintain moderate taxation for properties of more modest value.

2-Selling Price: 500,000 – 999,999 TND

For transactions with a sale price between 500,000 and 999,999 TND, the registration rate increases to 8%. This progression reflects the increased value of the property while maintaining a proportional taxation.

3-Selling Price > 1,000,000 TND

For old real estate properties exceeding 1,000,000 TND, the registration rate reaches 10%. This measure aims to ensure a more substantial taxation for high-value properties, contributing to tax revenues while discouraging speculation on luxury real estate.

V-Conclusion

The fiscal incentives granted to Tunisians residing abroad for the acquisition of real estate in Tunisia represent more than a mere financial incentive. They embody a thoughtful strategy aimed at revitalizing the entire real estate sector while strengthening the ties between the Tunisian diaspora and their country of origin. By transforming real estate into a crucial vector of economic and social connectivity worldwide, Tunisia not only appeals to investors but also invites its diaspora to play an active role in the development and prosperity of the country. These measures transcend the mere financial aspect, symbolizing a bold vision for a future where diaspora investment and engagement significantly contribute to the economic flourishing of Tunisia.