Although not usually regarded as a prime investment country,
Tunisia offers a number of benefits that make the country a
very appealing destination for foreign investors. Over recent
years, Tunisia has undergone a series of significant changes that
have encouraged foreign investors to set up or relocate businesses
in the country.
Following decades of heavy state participation in the
country's economy, Tunisia is
currently implementing strong economic reforms
and liberalisation measures. A process of prudent economic and
fiscal planning yielded moderate but sustained growth for over a
FDI (Foreign Direct Investment) currently accounts for 10%
of productive investments in Tunisia. Furthermore, FDI amounts to
15% of the total number of jobs and 30% of total exports. In recent
years, despite the strong decline due to the global recession and
the socio-political revolution in Tunisia, FDI strongly
Why invest in Tunisia?
Tunisia provides a credit-worthiness that guarantees access to
international capital markets. Tunisian economy is also undergoing
a strong diversification process as to reinforce its resistance to
possible economic downturns.
The country's strategic location on the Mediterranean is an
aspect investors should not overlook or underestimate. Tunis, the
country's administrative and economic capital, can be easily
reached from major European capitals.
Tunisia offers a very well developed social system and a very
ambitious education program. This guarantees the reduction of
social cost of adjustment and boost the modernisation of the
country. The country's workforce is qualified, productive and
grants competitive salary levels.
As a measure to encourage FDI growth, Tunisia has introduced,
over recent years, several forms of aid for foreign investor.
Should investors set up or relocate a business in Tunisia, they
would be granted relief on income tax (or profit reinvested) up to
35%, along with the exemption from Customs duty on capital goods,
in the case nothing similar is manufactured in the country. VAT
would moreover be limited to 10% for capital goods importation.
Should investors decide to set up or relocate a business in
Tunisian interior regions, Tunisia provides 10 year tax exemption
and 8-25% investment subsidy are among these incentives.
Sectors for Best ROI in Tunisia
Traditionally, Textile-Clothing has been the key sector of
Tunisian economy. However mining, energy, tourism, and
manufacturing sectors play a crucial role in the country's
economy. The agricultural sector (which employs half of Tunisian
population), accounts nonetheless for less than 15% of the GDP.
Electronic component production is, however, a very promising
sector and in increasingly attracting foreign investments.
Petroleum extraction sector has increased, due to recent oil
discoveries. Finally, tourism represents one of the important
Offshore Investments in Tunisia
Setting up an offshore company in Tunisia is a rather seamless
process. As a matter of fact, several countries entertain special
relations with Tunisia, and have signed agreements to avoid double
taxation. Moreover, profits from an offshore company in Tunisia can
transferred to another country with advantageous tax rates and
cannot be taxed again.
This is the list of country that have signed a treaty with
Tunisia to avoid double taxation.
Belgium, Germany, Austria, Norway, Italy, Denmark, Sweden, Spain,
UK, Poland, Switzerland, Netherlands, Malta
Senegal, USA, Korea, South Africa, Iran, Mali
Many more advantages must be taken into account when deciding
whether to set an offshore company in Tunisia. During the first ten
years of actual activity, income and profits derived from export
are fully deductible, notwithstanding the minimum tax. VAT is
not requested for payments received from abroad. Only one person is
required in order to incorporate the company.
Only 500 euros are needed to incorporate an offshore company.
Finally, dividends can be fully transferred and no tax on that
income will be paid to the country of origin, as provided by the
Agreement of Double Taxation.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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