Legal Framework and Investment Incentives

In general, the legal framework for business investments in Tunisia can be summarized as follows:

  • Tunisia has signed 52 double taxation avoidance agreements with other countries;
  • Progressive tax exemption for 4 years for certain investments from the establishment of the company;
  • Reduced tax rate of 15% on profits from certain high-value-added activities;
  • Financial incentives of up to one-third of the project cost;
  • Investment incentives for industrial projects in regional development areas and for tourism and agricultural projects;
  • Possibility of covering social and employer contributions for certain investments for up to 10 years from the project's creation;
  • 10% withholding tax on distributed dividends;
  • Exemption from customs duties and VAT, regardless of the country of origin of imported goods and equipment (in case of project establishment in Tunisia);
  • Ability to purchase local goods and services without VAT;
  • Exchange rate advantage for offshore companies.