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Incentive Legislation

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The Tunisian economy is characterized by increasing liberalization, greater integration in the global economy and stronger competitiveness combined with a new regulatory and tax incentive framework.

The new Investment Law, which came into force on the 1st of April 2017, offers the following advantages:

  • total freedom of foreign equity participation for offshore companies,

  • reduction in the number of authorisations and review of the relevant specifications,

  • freedom of access to land ownership for the realisation of the investment,

  • guarantees to the investor in compliance with international standards for fair and equitable treatment and for the protection of industrial and intellectual property,

  • freedom to transfer of funds (profits, dividends and assets) abroad,

  • possibility to hire 30 % of foreign executives during the first 3 years by simple declaration and 10 % thereafter with 4 executives guaranteed in all cases,

Financial and Tax incentives

  • Income tax rate reduced to 10 % for totally exporting companies,

  • Total exemption from VAT and customs duties on inputs to products to be re-exported,

  • Total tax exemption of benefits for up to 10 years granted to companies operating in regional development zones

  • Specific investment grants in regional development zones covering up to 30 % of investment cost capped at 3 MTND

  • Investment grants for priority sectors and value chains,

  • Economic yield grant on intangible investment and research and development expenditure

  • Subsidy of employers’ contribution to mandatory schemes,

  • Subsidy of expenses incurred under training programs leading to certification,

Specific Incentives for Regional Development Zones (ZDR)

There are two regional development zones for investments in industry, crafts and a range of services: a regional development zone of the first group and a regional development zone of the second group.

Within these specific geographical boundaries, there are specific investment incentives that are much more favourable to investors wishing to respectively establish their businesses in the zone of the second group and in the zone of the first group.

These benefits and incentives are summarized in the table below:

  Regional Development Zones under the 2nd Group Regional Development Zones under the 1st Group
Financial benefits in the form of subsidies, including revolving capital capped at 10 % of project cost 30% max 3 MTND 15% max 1.5 MTND
Deduction of business -generated revenues or profits 100% during the first ten years of operation and subject to 10 % thereafter 100% during the first five years of operation and subject to 10 % thereafter
Coverage of employer’s contribution to social security legal scheme 100% for 10 years 100% for 5 years
Coverage of infrastructure costs in industrial businesses capped at 10 % of project cost 85% max 1 MTND 65% max 1 MTND
Contribution to the Fund for the Promotion of Social Housing (FOPROLOS) Exemption for an unlimited period of time No advantages
Vocational Training Tax (TFP) In compliance with the legislation in force, the TFP is not payable by the companies benefiting from the advantages of regional development.

Reasons to Invest in Tunisia


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