Invest in Tunisia: free zones and offshore regime 2025

Why invest in Tunisia in 2025?

Tunisia offers a rare combination for a European investor: restored macroeconomic stability (IMF agreement 2024, controlled inflation), strategic geographic position (Mediterranean-Africa crossroads), qualified French-speaking workforce (700,000 graduates per year), and a legal framework aligned with international standards.

The country attracts groups like Leoni, Yazaki, Zodiac (Safran), Benetton, Ericsson — proof that the model works.

The 2016 Investment Code: key points

The Tunisian Investment Code (Law 2016-71) guarantees:

• Free repatriation of profits (totally exporting companies)
• Equal treatment between Tunisian and foreign investors
• Protection against nationalization and expropriation without compensation
• International arbitration access (ICSID, UNCITRAL)

The 3 main regimes

1. "Totally exporting" regime (offshore)

The most advantageous regime for European companies wishing to use Tunisia as an export production base:

Tax benefits:

• Corporate tax 0% for 10 years, then 10% (vs 15% standard)
• VAT: full exemption on imported inputs and equipment
• Customs duties: 0% on machinery, raw materials
• Dividends: exempt from withholding tax for 10 years

Conditions:

• Minimum 70% of turnover from exports
• Possible to sell 30% on the local market (paying applicable duties)

Eligible sectors: all, except hydrocarbons, mining, financial services

2. Special Economic Zones (SEZ)

Tunisia has developed several Economic Activity Parks (PAE):

3. General regime with incentives

For investments targeting the Tunisian market (non-exporting):

• Investment grant: up to 15% for regional development zones
• Deduction of reinvested profits: up to 35% of taxable income
• Partial employer contribution coverage for 5 years (priority zones)

Setting up a company: practical steps

SARL (limited liability company) — the most common

1. Registry filing: 1,000 TND minimum capital (≈ €300)
2. Official Journal publication: mandatory — 1–2 week delay
3. Tax ID (NIF) + CNSS social security registration
4. Business bank account opening
5. Total lead time: 3 to 6 weeks

Local lawyer/notary services: €500–1,500 depending on complexity.

Workforce: the real competitive advantage

• Engineers: €3,000–4,500/month (all-in) — vs €4,500–7,000 in France
• Skilled technicians: €800–1,400/month — vs €2,500–3,500 in Europe
• Production operators: €400–600/month — vs €1,800–2,200 in Europe

Turnover remains below the MENA average for well-managed companies. Tunisia trains thousands of mechanical, electronics, IT and textile engineers every year.

Risks to know and manage

• Exchange rate risk: the Tunisian dinar (TND) is not freely convertible — offshore companies avoid this risk (invoicing in foreign currency)
• Administration: delays can extend — a local lawyer is essential
• Infrastructure: outside major cities, logistics remains a challenge
• Political stability: 2022-2025 saw power concentration (2022 Constitution) — to monitor for long-term investments

The most promising sectors in 2025

1. Automotive: wiring harnesses (Leoni, Yazaki, Nexans) + electronic sub-systems
2. Aerospace: MRO (maintenance) and lightweight composites — Tunis and Sfax hubs
3. IT/BPO: French digital nearshoring, customer support, software development
4. Renewable energy: 2019 RES law, target 35% renewable electricity by 2030
5. Certified agri-food: organic olive oil, premium dates, harissa, canned goods

Considering setting up an entity in Tunisia? TuniTrade connects you with business lawyers, accountants and establishment consultants. Request guidance.