Rental income tax in Tunisia 2026: IRPP rates, deductible expenses, 25% non-resident withholding, annual filing and bilateral tax treaties. Complete guide for residents and TRE.

Rental Income Tax in Tunisia: Rates, Deductions & Filing Guide 2026

If you rent out property in Tunisia — whether you are a resident or non-resident — your rental income is taxable. The Tunisian rental income tax regime is frequently misunderstood, particularly by diaspora property owners who are unaware of the specific withholding tax rules that apply to non-residents. Here is everything you need to know for 2026.

General Framework: Rental Income = Property Income

In Tunisia, rent received from leasing real estate constitutes property income (revenus fonciers) subject to the Personal Income Tax (IRPP — Impôt sur le Revenu des Personnes Physiques). This applies to both unfurnished and furnished rentals, with some treatment differences.

Source: Tunisian Personal and Corporate Income Tax Code (IRPP/IS), Articles 22–30.

Tax Regime for Tunisian Residents

Option 1: Actual Expenses Method

Deductible charges include:

Property management fees (agency commissions, advertising costs).
Insurance premiums covering the rented property.
Loan interest (if the property was mortgage-financed).
Repair and maintenance works (excluding improvement works that add to the asset's capital value).
Condominium charges and building management fees.
Depreciation (in some cases, particularly new-build properties).

Net property income (rents minus deductible charges) is added to other household income and taxed at the progressive IRPP scale:

Annual net income bracket	Rate
0 – 5,000 TND	0%
5,001 – 20,000 TND	26%
20,001 – 30,000 TND	28%
30,001 – 50,000 TND	33%
Above 50,000 TND	35%

Note: These brackets reflect the IRPP scale applicable in 2026 — verify the current Finance Law for any updates.

Option 2: Flat-Rate Deduction

A flat 30% of gross rents is deducted without requiring expense receipts. Simpler, but less advantageous when actual charges exceed 30% of rents.

The taxpayer chooses between the two methods at the time of the annual return filing.

Non-Residents and TRE

Tunisians living abroad (TRE) and foreign nationals who own property in Tunisia are subject to a specific regime.

Withholding Tax for Non-Residents

When a business or professional tenant pays rent to a non-resident landlord, it must withhold 25% of gross rent as a liberating withholding tax (source: IRPP/IS Code, Article 52). This tax is final — the non-resident has no further IRPP obligation in Tunisia for those rents.

In practice, when the tenant is an individual (most common in residential letting), no withholding obligation applies. The non-resident landlord should then file an annual IRPP return in Tunisia. Many fail to do so — a tax risk that accumulates over time.

Bilateral Tax Treaties

Tunisia has signed tax treaties with France, Italy, Germany, Belgium, the Netherlands, the UAE, Saudi Arabia, Qatar, Morocco, Algeria, and others.

As a general rule, these treaties provide that property income is taxable in the country where the property is located (Tunisia). They may also provide tax credits in the owner's country of residence to avoid double taxation.

Example: A TRE living in France who collects rent from their Tunis apartment pays income tax on those rents in Tunisia first. They also declare the income in France, but the Franco-Tunisian convention allows them to credit the Tunisian tax against the French tax owed on the same income.

Consult a tax adviser for your specific situation, especially if you have complex multi-country residence status.

Furnished Rentals: Specific Treatment

Furnished lettings generally follow the same rules as unfurnished lettings. However, high-frequency furnished rentals (Airbnb-style) may be reclassified as commercial income subject to corporate tax or IRPP in the commercial income category — depending on frequency and management mode. Verify with a tax adviser.

Annual IRPP Filing

2026 Calendar

IRPP return deadline: before 25 June 2026 for individuals with rental income (standard deadline — confirm with your tax office).
Tax payment: concurrent with filing or per the tax assessment notice.

Procedure

File using Form D (individual income return) at the relevant tax collection office. The DGI e-services portal (Direction Générale des Impôts) also accepts online filings.

Source: DGI (impots.finances.gov.tn).

Summary Table: Residents vs Non-Residents

Situation	Applicable regime	Rate / Mechanism
Tunisian resident	Progressive IRPP	0%–35% on net global income
Non-resident (professional tenant)	Liberating withholding tax	25% on gross rent
Non-resident (individual tenant)	IRPP return in Tunisia	Progressive scale (in theory)
Tax treaty applicable	Credit in country of residence	Varies by treaty

Watch-outs

Non-filing carries late penalties (10% + 0.5%/month) and potential 5-year reassessment exposure.
Below-market rents may be challenged by the tax authority if significantly below comparable market rents (e.g., letting to a relative at a symbolic rent).
VAT: residential rents are generally VAT-exempt. Professional or commercial lettings may be subject to 19% VAT — check the use clause in your lease.

Last updated: May 2026. Tax data should be verified with the DGI or a licensed tax adviser.

Sources: Tunisian IRPP/IS Code (JORT), DGI (impots.finances.gov.tn), Tunisia bilateral tax treaties.