Tunisian property buying guide

 
Foreigners are now permitted to purchase real estate in Tunisia but only properties that are set within town boundaries, agricultural land cannot be purchased.

Until recently, Tunisian government officials discouraged investment in the real estate sector. Nonetheless, this policy has now been relaxe, although all real estate transactions by foreigners are still subject to approval.

Governors Agreement

The Tunisian Governors Agreement is a formality that every foreign purchaser has to go through. Remember that it is only a formality and that due to the changes that are going on in Tunisia to increase the number of foreign investors the Tunisian Government are planning to phase these agreements out. The Governors Agreements are simply seen as a way of keeping track of who is buying property in Tunisia.

The Governors Agreements are seen by many as a positive thing since they make sure that every property that is purchased by a foreigner is checked thoroughly giving the purchaser peace of mind.

For your peace of mind there is a full money back guarantee should the Governor's Agreement not be forthcoming. However, as already stated, it is merely a long winded formality.

Protected Payments

In Tunisia, the advanced build payments paid to developers by off-plan property buyers are highly regulated by Tunisian law.

As such, the funds paid by purchasers for the build of the property are protected by an escrow account which the developer doesn't have access to. The bank lends money on the back of these funds in small stages to the developer as they are required. Inspectors are sent to the site on a monthly basis to monitor the build and release funds as they are required, typically in 10% increments.

This is a LEGAL REQUIREMENT in Tunisia and the bank where the funds are kept is the largest Government owned bank in Tunisia called the Banque de l'Habitat. Your funds are therefore very secure and this system, based on what is commonly used in the USA, is an alternative to Bank Guarantees or Insurance bonds for client funds protection.

Capital Gains Tax

Is levied at 10%.  Upon selling of the property, the bank will withhold on behalf of the Government 10% of the difference between the selling price and the sum indicated on the certificate, (Capital Gains) which you will receive from the bank evidencing the amount you have paid for your property.  For example, if you are to buy a property at €100,000 and sell in two years at €200,000, the difference of €100,000 will be taxed at a 10% level. Therefore the client will be taking €190,000 out of the country in total.




For more information on purchasing property in Tunisia, contact us today and leave your number, we will call you at a time convenient to you.