Capital Gains Tax on Property in Tunisia 2026: Rates, Exemptions and Non-Resident Rules

Selling Tunisian property at a profit raises immediate tax questions: is it taxable? At what rate? Are there exemptions? Rules differ for residents vs. non-residents and depend on how long you've held the asset.

Disclaimer: This article is informational only. Consult a licensed Tunisian tax adviser before making decisions.

What Counts as a Capital Gain?

Under Tunisian tax law, the capital gain is the difference between the sale price and the acquisition cost (purchase price + documented purchase fees + improvement costs). Gains realised by individuals on property sales are treated as capital income (not rental income).

Tax Rate: 15% Flat Rate

Capital gains on property sales by resident individuals are taxed at a flat 15% liberatory rate (IRPP Code), independent of the progressive income tax scale. The same 15% rate applies to non-residents for Tunisian-sited properties under bilateral tax treaties, which generally assign property gain taxation to the country where the property is located (Tunisia).

The 15% applies on the net gain after deducting:

• Original acquisition cost.
• Documented purchase fees paid at acquisition (registration duties, notary).
• Justified improvement expenditure (with receipts).

Key Exemptions

1. Primary Residence (Total Exemption)

Sale of a primary residence is fully exempt from capital gains tax, provided the seller resided there for at least 2 years before the sale. This is the most common and valuable exemption.

2. 10+ Year Holding Period (Total Exemption)

Property held for more than 10 years is fully exempt from capital gains tax on sale. A significant benefit for long-term patrimonial investors.

3. Inheritances and Gifts

No capital gain arises at the point of inheritance or gift transfer. Any gain is only calculated at subsequent resale, measured from the value established in the estate.

Worked Example

Purchased 2019: 200,000 TND + 14,000 TND acquisition fees = 214,000 TND base. Sold 2026: 320,000 TND. Improvement works: 15,000 TND (documented).

• Net capital gain: 320,000 – 214,000 – 15,000 = 91,000 TND
• Tax owed (15%): 13,650 TND

If this was the seller's primary residence for 2+ years → total exemption, tax = 0. If held since 2013 (11 years) → total exemption, tax = 0.

Repatriation for Non-Residents

CPF (foreign currency) acquisition: Full sale proceeds (price + gain) freely repatriable via CNR account — no exchange control restriction.

Dinar acquisition: Only the net-of-tax gain can be repatriated, subject to BCT regulations and supporting documentation.

FAQ

Does the notary automatically declare the capital gain? No. The notary records the sale price in the deed, but the seller must declare the gain in their annual income tax return.

Does the primary residence exemption apply to non-residents? No — that exemption is reserved for Tunisian tax residents.

Can a capital loss (sale below purchase cost) be offset against other income? No — property capital losses are not deductible from other income under Tunisian tax law.

Updated: May 2026. Sources: Tunisian IRPP/IS Tax Code, DGI (finances.gov.tn). Informational only — consult a tax professional.