Ecovis Global > How to invest in Tunisia: Unlocking opportunities
How to invest in Tunisia: Unlocking opportunities
28. September 2023
Over the past ten years, Tunisia has made a name for itself as a location for investments in IT development. Foreign IT companies in particular, for example from Western Europe, Canada and the USA, have set up branches in Tunisia – and are benefiting from the numerous advantages that the country offers: a favourable geographical location, a pool of highly qualified engineers and attractive tax and legal incentives.
Tunisia has emerged as one of Africa’s most digitally connected countries, characterised by rapidly growing urban centres that are democratising access to the internet and digital technologies. This widespread connectivity facilitates seamless domestic and international communication and collaboration, providing an ideal setting for IT firms to expand their reach. The country’s strategic location on the northern coast of Africa, in close proximity to major European economic hubs such as Paris, Rome, and Madrid, is another significant advantage. This geographical alignment ensures compatible time zones, enabling real-time communication and minimizing logistical challenges.
We support you with accounting and tax issues if you wish to set up a company in Tunisia. Youssef Tekari, Managing Partner, ECOVIS KDH Partners, Tunis, Tunisia
Tunisia offers many advantages to IT companies willing to relocate
The corporate tax rate is only 15%, with a full tax exemption in the first year of business.
The tax on dividends is a competitive 10%, creating a favourable and cost-efficient business environment.
Tunisia’s educational institutions consistently produce skilled IT professionals. Graduates possess both theoretical knowledge and practical skills, making them valuable assets to the industry.
The cost-effective labour market in Tunisia, where starting salaries for IT developers rarely exceed EUR 1,200 gross per month, enhances its appeal to investors. This allows companies to maintain high-quality development teams without incurring excessive financial burdens.
Tunisia’s academia-industry collaboration plays a pivotal role in its attractiveness. Mandatory internship programmes at Tunisian universities forge close ties with the IT sector, benefiting students with practical experience and companies with a pool of potential future employees.
The Professional Life Initiation Contract (Contrat d’Initiation à la Vie Professionnelle, or CIVP) exempts employers from social security contributions for the first year when hiring new graduates, reducing hiring costs and encouraging investment in local talent.
Tunisian regulations accommodate non-resident exporting companies, facilitating straightforward profit repatriation to the parent company or foreign shareholder’s bank account.