Buying Land or an Apartment

Post by Admin On February 25, 2024

Investing in Tunisia

PURCHASE OF REAL ESTATE

Buying land or an apartment in Tunisia is a very interesting investment for Tunisians living abroad or for foreigners. The Tunisian dinar is significantly depreciating (1 euro = 3.326 dinars and 1 dollar = 3.060 dinars), which makes acquiring real estate an excellent investment. However, before buying real estate (house, apartment, land), it is essential to take precautions and use the services of a lawyer to check the land status of the property to be purchased. The lawyer will therefore perform the necessary legal checks.

For the purchase of land or an apartment, there are two types of real estate in Tunisia: those that are registered with the land registry office (CPF) and have a land title with a plan at the topographical services, and those that are not registered and are commonly referred to as "Arab contract". In any case, before buying a property, the following points must be checked:

A- If it's a house or an apartment:

1) The owner's contract and its registration at the tax office
2) Whether the real estate is subject to a mortgage or a seizure registered in the land registry at the CPF.
3) Transcription of the seller's name at the land registry office (CPF).

B- If it's land:

1) The purpose of the land (touristic, industrial, agricultural, or for residential construction)
2) The COS and CUF at the technical services of the municipality
3) Transcription of the seller's name at the land registry
4) Whether it is subject to a mortgage or others (conservatory seizure or real estate seizure)
5) The existence or not of a reserve clause of ownership in favor of the State or a prohibition of sale for a certain period.

PURCHASE IN FOREIGN CURRENCY

Tunisians living abroad who plan to buy a house, an apartment, or land and finance this acquisition in foreign currency are only liable for the payment of the 1% CPF tax. However, they are exempt from registration fees (see joint fiscal note no. 5 of 2017).

REGISTRATION FEES

1) Built properties acquired from an individual:
- Value less than 500,000 dinars: 5% of the price
- Value more than 500,000 dinars: 5% of the price

2) New built properties acquired from a real estate developer:
- In addition to taxes, a VAT of 13% is added, and taxes are calculated on the total sale price including VAT.

PURCHASE OF REAL ESTATE BY A FOREIGNER

Foreigners living in Tunisia or abroad must obtain prior authorization (governor's authorization). Indeed, they are required to sign a sales agreement and present a complete file (list of documents) to the real estate service of the governorate and wait for the governor's approval. The waiting period for a response is between 6 months and 1 year. Once the governor's authorization is obtained, a definitive deed of sale can be signed and legalized, specifying the dates and the number of said authorization.

Selling Real Estate by a Foreigner in Tunisia

Post by Admin On March 7, 2024

Investing in Tunisia

Are you a foreigner and want to know the procedure for selling your real estate in Tunisia?
Before any procedure, it is advisable to seek advice from a lawyer.

Sale of Real Estate by a Foreigner in Tunisia:

The sale is generally subject to the Governor's authorization, under the same conditions as the purchase. A prior authorization from the Tunisian administration is essential for any transfer of property.
However, properties acquired or built before 1956 and sold to a Tunisian are not subject to the Governor's authorization. The only obligation of the seller is to notify the tenant or the occupant in good faith, by a bailiff, a summons to exercise their right of first refusal to purchase. The tenant has a period of one month for an individual property and two months for a collective property, to exercise their right of first refusal.
For properties acquired or built after 1956, the sale is subject to prior authorization from the Governor unless the conditions of this sale meet the Franco-Tunisian Agreement of December 4, 2003. This agreement provides for exemption from the Governor's authorization when the sale is made to a Tunisian and when the seller can prove that the sold property is the result of an investment in foreign currency.
To obtain the Governor's authorization, it is necessary to submit a complete application file for the sale authorization to the territorially competent governorate.
After obtaining the administrative authorization and signing the final sale contract, it will be possible to transfer the sale proceeds to France.
Transfer of Financial Assets Held in Tunisia
Transfers of assets from Tunisia to France are possible for non-resident foreigners (since 1987) or residents (in case of definitive departure from Tunisia), after approval by the Central Bank of Tunisia.

For Non-Resident French Citizens:

Financial assets held in Tunisia by non-residents with only French nationality must be kept in suspense accounts and cannot be freely used. They can be withdrawn during trips to Tunisia, but within very narrow limits (about 100 dinars per week, roughly 65 euros, or a higher amount, subject to authorization from the Central Bank).
Suspense accounts can be opened at any Tunisian banking agency. However, we advise contacting one of these three banks: UBCI, UIB, Tunisian-Kuwaiti Bank.

Transfer Abroad of Financial Assets:

To make a fund transfer, you must obtain:
– a tax clearance: the competent Tax Control Center requires a number of documents before issuing the tax clearance (validity 3 months). Any applicant for authorization to transfer financial assets to France must obtain this clearance, which is required by the Central Bank.
– authorization to transfer financial assets to France: it is the Central Bank that issues this authorization. Numerous supporting documents must be provided. In case of sale, the Central Bank only authorizes the transfer upon production of the property certificate in the name of the new buyer.
In the case of buying and then selling real estate, the transfer of the sale proceeds is only possible if the origin of the funds through the importation of currencies is justified. We advise French people to keep their documents to prove the transfers.
It is strongly advised for non-resident French nationals to have local representation in Tunisia for procedures with local institutions (tax administration, Land Registry, real estate managers, banks...).

Some Recommendations

– Obtain certified copies (an incomplete file leads to additional procedures),
– keep any unique original document (make certified copies, if necessary),
– keep all supporting documents, even very old ones (credit notice, land title...),
– confirm the content of phone calls in writing,
– keep a copy of all correspondence and all their attachments,
– send by registered mail with acknowledgment of receipt (or ask for a discharge in case of hand delivery). Compensation in case of expropriation for public utility or nationalization Expropriations for public utility and nationalizations are entitled to compensations. The compensations rarely amount to the real value of the real estate (the expropriation compensation is determined by an expert). They must first be settled amicably, then, in a second step, be made through legal proceedings. As for public purchase offers, the agreements of February 23, 1984, and May 4, 1989, set the terms for the transfer to the Tunisian State of vacant lands, residential premises, or commercial premises owned by French people, as well as the conditions for payment of the sale price. The procedures are carried out in two stages:
– The National Real Estate Company of Tunisia (SNIT) launches a public purchase offer for acquiring a property, and the sales contract is concluded between the French owner and the SNIT.
– The National Agency for the Compensation of French Overseas (ANIFOM) examines the sale prices. The purchase offer is valid for nine months from its publication in the official journal. If the owner receives an individual offer, the period is three months from the notification. Any responses or claims should be sent directly by mail to the SNIT or ANIFOM (see "Useful Addresses" section).

Renting Out Real Estate by Non-Residents

The rental of real estate abroad involves risks of diversion, actual absence of rental, or poor management.
In addition to the National Real Estate Company of Tunisia (SNIT), real estate properties owned by foreigners must be managed by a licensed real estate agent. The agent is responsible for carrying out all formalities related to property management (collection and transfer of rent, maintenance of the premises, tax declaration).

Acquisition of Real Estate by a Foreigner in Tunisia

Post by Admin On March 14, 2024

Investing in Tunisia

In Tunisia, foreigners can acquire real estate under certain conditions, except for agricultural lands.

Before buying real estate:

– verify that the land does not have an agricultural purpose (agricultural land cannot be acquired by a foreigner),
– ensure the land status of a property registered with the competent Land Registry. Real estate properties in the medinas can be acquired, but most often, they are not registered. Essential points to check:
– the nature of the land (agricultural or not),
– the registration of the property (with a land title),
– the registration of the seller's property rights,
– the purpose of the location (buildable land, tourist perimeter),
– the absence of a property reserve clause in favor of the Tunisian state (following expropriation for public utility or nationalization under the law of May 12, 1964). To acquire real estate, it is necessary to obtain authorization from the Governorate and the Central Bank of Tunisia.

Authorization by the Governor

A prior purchase authorization signed by the Governor is mandatory for the buyer of foreign nationality. The time frames to obtain the authorization differ from one governorate to another but are on average at least one year.
It is appropriate to sign a promise of purchase and to pay an advance on the total price (about 20%). Include a clause for the refund of the deposit in case of refusal by the Governor.

Indicative list of documents to be provided

– a duly completed application form in 5 copies;
– a report made by a bailiff specifying the conditions of the property;
– a property certificate;
– the purchase promise drafted according to current regulations with legalization of the contractors' signatures;
– the tax clearance of the seller (if the latter is foreign);
– a municipal clearance justifying the settlement of municipal taxes;
– identity documents of the seller and the buyer;
– the criminal record of the buyer (required by some governorates);
– a situation plan of the property;
– a certificate from the municipality justifying the purpose of the land. If the land is vacant, a certificate justifying that the said land is buildable may be requested. Some governorates also require a certificate from the Regional Commission of Agricultural Development indicating the purpose of the land;
– the land title,
– any document attesting to the seller's origin of ownership (if the seller is of foreign origin, a prior purchase authorization must be provided),
– the verification report and the building permit. For each document, an original or a certified copy and four photocopies should be provided. The application for prior purchase authorization may be approved or refused. If the authorization is granted, the final purchase contract is signed and legalized, then the registration and transcription procedures are carried out. The sale contract must be registered at the Finance Office of the property's location within sixty days. The purchase of real estate (for residential use) by a non-resident foreigner in foreign currencies is registered at a fixed right. If the property is registered, the purchase contract must be transcribed at the competent Land Registry. If the authorization is refused, it is impossible to finalize the sale. To recover the initially paid deposit, the promise of purchase must provide for its restitution under a clear and precise clause. Authorization by the Central Bank of Tunisia Any purchase of real estate by a non-resident French person is necessarily subject to authorization from the Central Bank of Tunisia, in accordance with exchange legislation. It is appropriate:
– to open a non-resident account in foreign currencies or convertible dinars, in the bank of their choice and in correspondence with their banking institution in France;
– to import the currencies intended to settle the deposit and then the purchase price;
– to ask their bank to provide an investment sheet specifying that the funds from abroad are intended for the acquisition of real estate. It is necessary to obtain this investment sheet (which will be indispensable for the resale) from their bank within 48 hours following the transfer of funds. In the event that it cannot be obtained, the buyer must obtain a certificate from the bank indicating all these details. For French residents, the purchase is not subject to prior authorization from the Central Bank, but this acquisition must be made through the importation of foreign currencies. Also, they must open a "special resident account." It is preferable for payments to the seller to be made via bank transfer, ensuring the transparency and security of the transaction.

Succession of Assets in Tunisia

In the context of a succession, several documents will be required for the financial or real estate transactions of the heirs.
For any real estate or personal property in Tunisia belonging to a deceased French person, the succession must be declared in Tunisia, and the transfer rights by death must be paid.
If the deceased has left real estate in the inheritance, it is necessary to regularize the land status of the property by proceeding to transcribe the death on the land registry. It is necessary to deposit the death certificate, the certificate of notoriety, and the birth certificates of the heirs.
If the deceased also leaves personal property (cash or securities), it will be necessary to close the deceased's account and open a suspense account in the name of each heir, then distribute the proceeds of the succession into the suspense accounts of the heirs, subject to prior authorization from the Central Bank of Tunisia.
Subsequently, the Central Bank authorizes the transfer of the proceeds of the succession, upon production of the tax clearance and other documents.
Franco-Tunisian Agreements in Real Estate Matters
– Agreement on the encouragement and mutual protection of investments of October 20, 1997, ratified by a law of December 1998,
– Agreement concerning the settlement of the issue of French real estate in Tunisia, in the form of an exchange of letters dated October 20, 1997.

Real estate trends in Tunisia in 2024

Post by Admin On March 28, 2024

Investing in Tunisia

The year 2024 promises to be a pivotal year for the Tunisian real estate market, which will face several challenges and opportunities. What are the main trends that will mark this rapidly changing sector? Here is our analysis and forecast.

Real estate trends in Tunisia in 2024

From January 1, 2025, sales of goods for residential use will be subject to VAT of 19%, in accordance with the 2024 finance law. This measure aims to increase state tax revenue and reduce the deficit budgetary, but it will also have an impact on the real estate market.
In fact, this tax will increase the cost of acquiring new homes, and could discourage potential buyers, particularly first-time buyers and the middle classes. Current 2024 will be marked by a likely buying frenzy at the end of the year, while the start of 2025 could see a temporary slowdown before the market finds its equilibrium under the new VAT rate of 19%.
For real estate developers, this tax represents both an opportunity and a risk of seeing their current housing stock decline at the risk of seeing it increase in 2025, which could push them to lower their prices or offer payment facilities to buyers. .
According to the Entreprises Magazine land guide, the land market in Tunisia experienced strong growth in 2023, with an increase of 15% in the number of transactions and 20% in the average price per m². This trend is expected to continue in 2024, driven by demand from individuals and investors.
This trend can be explained by various factors, including the increase in construction costs, the slowness of work, the complexity linked to the acquisition of land due to land titles, the scarcity of plots developed for construction, resulting from population and urban growth, as well as considerations related to infrastructure and land viability.
The most sought-after lands are those located in peri-urban areas or coastal regions, which offer a pleasant living environment and potential for profitability. Agricultural land is also popular, particularly for the development of ecological or tourist projects.

The rise of eco-responsible construction

Faced with environmental and energy challenges, the construction sector in Tunisia is increasingly turning towards eco-responsible practices, which aim to reduce the impact of buildings on nature and optimize their performance. These practices include the choice of materials, bioclimatic design, thermal insulation, water management, the use of renewable energies, etc.
Several innovative real estate projects have emerged in Tunisia, which integrate these principles of sustainability, such as the Smart City project in Tunis, which aims to create an intelligent and green city, or the Ecovillage project in Bizerte, which offers ecological and autonomous housing. . These projects demonstrate the desire of promoters and buyers to be part of a civic-minded and environmentally friendly approach.
In conclusion, the Tunisian real estate market in 2024 will be marked by significant changes, which will influence the behavior of players in the sector. It will therefore be necessary to adapt to these new realities and seize the opportunities that present themselves, while taking into account the needs and expectations of customers.

Real estate trends in Tunisia in 2024

Post by Admin On March 28, 2024

Investing in Tunisia

The year 2024 promises to be a pivotal year for the Tunisian real estate market, which will face several challenges and opportunities. What are the main trends that will mark this rapidly changing sector? Here is our analysis and forecast.

Real estate trends in Tunisia in 2024

From January 1, 2025, sales of goods for residential use will be subject to VAT of 19%, in accordance with the 2024 finance law. This measure aims to increase state tax revenue and reduce the deficit budgetary, but it will also have an impact on the real estate market.
In fact, this tax will increase the cost of acquiring new homes, and could discourage potential buyers, particularly first-time buyers and the middle classes. Current 2024 will be marked by a likely buying frenzy at the end of the year, while the start of 2025 could see a temporary slowdown before the market finds its equilibrium under the new VAT rate of 19%.
For real estate developers, this tax represents both an opportunity and a risk of seeing their current housing stock decline at the risk of seeing it increase in 2025, which could push them to lower their prices or offer payment facilities to buyers. .
According to the Entreprises Magazine land guide, the land market in Tunisia experienced strong growth in 2023, with an increase of 15% in the number of transactions and 20% in the average price per m². This trend is expected to continue in 2024, driven by demand from individuals and investors.
This trend can be explained by various factors, including the increase in construction costs, the slowness of work, the complexity linked to the acquisition of land due to land titles, the scarcity of plots developed for construction, resulting from population and urban growth, as well as considerations related to infrastructure and land viability.
The most sought-after lands are those located in peri-urban areas or coastal regions, which offer a pleasant living environment and potential for profitability. Agricultural land is also popular, particularly for the development of ecological or tourist projects.

The rise of eco-responsible construction

Faced with environmental and energy challenges, the construction sector in Tunisia is increasingly turning towards eco-responsible practices, which aim to reduce the impact of buildings on nature and optimize their performance. These practices include the choice of materials, bioclimatic design, thermal insulation, water management, the use of renewable energies, etc.
Several innovative real estate projects have emerged in Tunisia, which integrate these principles of sustainability, such as the Smart City project in Tunis, which aims to create an intelligent and green city, or the Ecovillage project in Bizerte, which offers ecological and autonomous housing. . These projects demonstrate the desire of promoters and buyers to be part of a civic-minded and environmentally friendly approach.
In conclusion, the Tunisian real estate market in 2024 will be marked by significant changes, which will influence the behavior of players in the sector. It will therefore be necessary to adapt to these new realities and seize the opportunities that present themselves, while taking into account the needs and expectations of customers.

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Real estate trends in Tunisia in 2024

Acquisition of Real Estate by a Foreigner in Tunisia

Selling Real Estate by a Foreigner in Tunisia