Why Invest in Tunisia
Unrivalled Capital growth
Cosmopolitan society – French, English, Russian, Italians, Spanish
Low entry level for investors
Properties from as little as €24,999
Frontline Beach Developments
Low price per sq meter
High Rental Yields
Many golf courses – 18 hole/35 hole
Outstanding quality of build
International Cuisine
2/3 hrs flight time from Europe
Tourism increased by 45% in 2006
6 international airports and more being built
Billions of euros being invested by government and private institutions.
Democratic society
Mediterranean climate
Tunisia is a great place to visit and an excellent country to invest in. The tourist industry is booming due to its Mediterranean temperatures, great locations and quality developments and redevelopments of many locations funded by the government and investors. With the popularity of Tunisia growing all the time and more people traveling to Tunisia each year, investing into Tunisia is a real possibility, with many chances to buy property in top locations, like Sousse, El Kantaoui, Djerba and Hammamet. With property in locations like these it can be easily rented out as holiday homes. Buying property is becoming easier for foreigners although there are still strict guidelines but with a lawyer and help from agencies it is very achievable.
The time to invest in Tunisia could not be better. Considered to be the one of the most stable countries in the Arab speaking world, and certainly the most politically and economically stable country in all of Africa, Tunisia is a founding member of the World Trade Organisation and has a trade association agreement with the EU. The Tunisian people have strong links to Europe and consider themselves to be more European in nature than African or Middle Eastern. Within two hours flight of the capital, Tunis you are able to reach most established European capitals whilst flight times to the UK are just under 3 hours. A stable currency and consistently low inflation levels below 3% have helped to place Tunisia in a great position to benefit from direct foreign investment which is currently pouring into the country.
Dubai Investment
The largest developers from Dubai have recently started to invest very heavily into Tunisia, realising the stability of the region and the proximity to Europe making Tunisia an ideal link between Africa, Middle East and Europe. In the capital Tunis, they are currently investing over $10bn in projects such as Tunis Financial centre and Tunis Sports City based on the popular concepts from Dubai itself. Further south, they are investing $2bn in a picturesque coastal region creating an artificial marina, a world class golf course, exclusive residential properties and a number of luxury 5-star hotels. It isn’t only the Dubai groups who have stood up and taken notice of what is happening in the country. Many large European organisations and banks have set up bases in Tunisia benefiting from a highly educated work force and a very stable economy whilst the government welcomes them with open arms providing excellent incentives encouraging them to move to the country.
Excellent Infrastructure
Infrastructure and transportation to and within and the country is excellent as Tunisia offers 7 international airports ensuring that no matter where you are in the country you are never further away than 2 hours from an airport. The largest airport in Northern Africa is currently under construction in Tunisia scheduled for completion in late 2009 which will offer cheap and inexpensive flights with carriers such as Ryanair and Easyjet. Within 10 minutes drive of this airport, the largest deep water port in the southern Mediterranean is also being built enabling the globe’s biggest trade ships and cruise liners to dock in Tunisia.
Property market
So why hasn’t the property market yet taken off in Tunisia? Well, until very recently, foreigners were not allowed to buy property in Tunisia as the government wanted to ensure that home ownership for the local market was made affordable. With local home ownership currently in over 80%, higher than in the UK and most other EU countries, they have certainly achieved that target and now believe that Tunisia is ready to benefit from the explosive foreign-property ownership boom that many of its northern European neighbours have done extremely well from in recent years. For the foreign investor this is great news as it means that there is a strong local market in place when they need to realise their investments and sell their properties. At the moment, foreigners still require authorisation from the Governor of the region in which they are buying the property, however for most this is simply a formality which takes approximately 3 months to complete. With so many excellent reasons to buy in Tunisia, the timing could not be any better to benefit from this new and exciting market on the door step of Europe!
Strong Economy
The Republic of Tunisia (pop 10.1 million) is considered as one of the most stable countries in the Arab region. For the past decade it has been a shining example to other African and Middle Eastern nations on how to grow and prosper as a developing nation. In 2007, the World Economic Forum ranked the country as the number 1 most competitive African economy (29th in the world) with also the highest ranking out of all the countries in the Arab speaking world. Comparing other nations in the region, Morocco ranked 64th while Egypt came in 77th out of 131. In the same report, Italy was placed in 42nd position, 13 places below Tunisia. GDP per capita is around US$8,800.
Inflation within the country has remained below 3% for the past 10 years whilst economic growth has constantly been above 5% for the same period. The country has had to work extra hard to develop its industry and economy to the level it is at today. Unlike its larger neighbours, Libya and Algeria, Tunisia produces very little oil and so the country had to develop and excel its other industries such as tourism, manufacturing and agriculture. Needless to say that Tunisia's economic reform program has been lauded as a model example by international financial institutions.
Tunisia acceded to the GATT in 1990, is a founding member of WTO, and has an Association Agreement on free trade with the EU.
Buying costs in Tunisia are low - How difficult is the property purchase process in Tunisia?
Although the laws concerning property taxes do change from time to time, as a general rule, when buying property in Tunisia, you need to budget for the following costs :
Property Tax
1% of the total value of the property if buying from an immobiliere promoter.
6% of the total value of the property if buying from an individual.
3% of the total value of the property 'Change of ownership fee' if buying a re-sale property.
Opening Of A Currency Convertible Account
All purchasers living abroad will need to open a currency convertible bank account, in which to send money to be converted into Tunisian Dinars to pay for their property. A small amount of money should be brought to open this account and this should be declared with customs upon arrival and a receipt should be obtained.
Solicitor's Fees
1 - 3% of the total value of the property or land, on average.
On The Sale Of Property Or Land
1.5% of the total value of the property or land is due from the Vendor
On The Rental Of Property
5% of the annual rental amount is due from the Landlord
5% of the annual rental amount is due from the Tenant
Selling Your Tunisian Home
If at some stage you would like to sell your Tunisian home, you are able to take your money out of the country in the currency that you paid for your property. For example, if you paid £200,000 and sold your property for £300,000, therefore making a £100,000 profit, you can take the £200,000 tax free, but of the profit, you will need to pay 10% tax, i.e. £10,000. However, if you have owned the property for over 10 years, the current law states that you will only be charged 5%. If you choose to sell your home, we can obtain up-to-date advice of the current laws at that particular time, for you.
Foreigners are allowed to purchase real estate property in Tunisia. Until recently, Tunisian government officials discouraged investment in the real estate sector. Nonetheless, this policy seems to be being relaxed, though all real estate transactions are still subject to approval.
Agricultural land cannot be bought by foreigners. Leasing of (agricultural) land up to 40 years, however, is allowed.
A preliminary contract of sale (“promesse de vente” or promise of sale) is executed between the contracting parties. Whether there are any legal encumbrances on the property should be first checked at the Regional Land Ministry.
The preliminary contract should include:
the name of the contracting parties;
address and other identification details of the property;
specification of what costs the seller and purchaser bear;
presence of tenant and date of vacancy (if relevant);
“delay of realization of sale”, which refers to a grace period, during which the purchaser can fulfill needed documentation and secure funding.
a deposit equivalent to 10% of the sale price is expected.
The contract is then prepared by a lawyer or a notary after consultation with the property registry services. In either case, the contract still needs to be notarized, and the contracting parties should be present.
After payment of the transfer tax and registration fee, the purchaser files an application for a title deed at the Land Property Administration, and doe a property certificate from the Regional Land Registry.
Can a British Citizen own property in Tunisia?
Yes, as long as it is within town boundaries. A non-Tunisian cannot own agricultural land. The Tunisian Governors Agreement is a formality that every foreign purchaser has to go through. Remember that it is only a formality and that due to the changes that are going on in Tunisia to increase the number of foreign investors the Tunisian Government are planning to phase these agreements out. The Governors Agreements are simply seen as a way of keeping track of who is buying property in Tunisia.
The Governors Agreements are seen by many as a positive thing since they make sure that every property that is purchased by a foreigner is checked thoroughly giving the purchaser peace of mind.
The documents that are needed for the Government Agreement are dealt with by our associates inTunisia. All that is needed is a copy of your passport, Promise of Sale and Ground Certificate (which are provided by the developer), and the proof of your money transfer. With this the Local Government instruct the Notary to visit the project to make sure that the ground and the project does exist and that your purchase is being built which can only be a good thing.
Area Guide
Tunis
One hour from Hammamet, Tunis takes you by surprise with its modern conference halls, hotels and banks, bright yellow taxis rushing passengers to a business lunch, all the hustle and bustle of a modern Mediterranean city. Steel and glass blend with the baroque, palm trees look down on chic boutiques, gardens and cafés.
Begin at the monument of November 7, which marks Tunisia's turn towards the future, stroll down shady tree lined Avenue Habib Bourguiba, with its flower stands, passing bookstores and galleries. Beyond the Cathedral and the statue of Ibn Khaldoun, looms the gateway to the ancient Medina.
As you enter the narrow streets , centuries slip away and, like Alice, step into the looking glass to another world. Small shops, their treasures of brass, olive wood, leather and brightly colored garments spill out into the street. Souvenirs, antiques, berber jewelry, carpets and pottery vie for your attention. Continue, if you can resist their lures, upwards towards the Mosque of the Olive Tree, Ez Zitouna, as old as the town itself and the heart of the Medina.
Hammamet
For visitors and Tunisians alike Hammamet is another word for vacations and its ritual of sun bathing on spotless beaches, the gasp of cool water on bronzed skin, dinner on the patio of a beachfront hotel , midnight swims, discos and watching the sun rise in the mirror of the sea.
Hammamet, the "Tunisian Saint Tropez", is all this and more. Its a way of life, taking the time to relax , meet old friends and make new ones.It's fishermen in brightly painted boats setting out at dawn, the medina surrounded by its ramparts and crowned by an ancient fort overlooking the sea, fashionable boutiques where resplendent traditional tunics and caftans rival the shimmering sun.
The Gulf of Hammamet shelters miles of fine sandy beaches, sparkling seas and modern hotels dedicated to the comfort a well being of their guests. A variety of sea sports, folklore, exhibitions, festivals and amusements are provided for an memorable vacation.
Monastir
Monastir, 9th century walls and an imposing Ribat tower over a modern resort complex and the result is amazingly harmonious. Monastir captures that blend of the traditional and modern that characterizes Tunisia. A marina nestled in the shade of the walls provides a enjoyable promenade as does the long avenue that offers the bluest of Mediterranean seas on one side and open air terraces of hotels, restaurants and coffee houses from where you can enjoy the view.
The "monastery" after which the town was named, was built by an Islamic religious order in 797 to defend the town from roaming nomadic tribes and Byzantine warships. The fortress houses a lovely museum of art and artifacts.
Sousse
On the eastern coast of Tunisia, two hours from the capital Tunis lies Sousse, "the pearl of the Sahel" . The mildness of its climate, its calm and beautiful coast and the hospitality of its people have long captivated those who came to conquer. Phoenicians, Romans, Byzantines and Arabs settled in this lovely "fertile city" each leaving their imprint and heritage. No wonder modern day visitors from all over the world find themselves at home and return again and again.
The resort area of Sousse is perfectly integrated into the city and the visitor welcomed to participate in its exuberance. Proud of its heritage, museums and monuments are accessible and opened with pleasure to its guests and the Medina with its tiny colorful shops overflowing with silver jewelry, pure wool blankets, copper and carpets bustle with activity under the towering walls of the ribat.
El Kantaoui
The hotels that line the beachfront extend from the Sousse itself along miles of sparkling clean sea to the Port El Kantaoui. This complex includes a modern marina equipped for over 300 boats, an 18 hole golf course as well as a full array of sports from water skiing to riding, in a village-like setting.
The charm of this white and blue Tunisian style village with its perfectly reproduced medina, never fails to enchant, lending itself to an afternoon stroll through the cobblestone streets to window shop, admire the boats moored in the marina or a refreshing pause at one of the sidewalk cafes. The two story residential apartments that ring the marina observe the same architectural style creating a peaceful and pleasing harmony
A wealth of Spas in Tunisia
Thalassotherapy (derived from the Greek word ‘thalassa’ which means ‘sea’), uses the beneficial aspects of the marine environment; the climate, sea water, seaweed and algae, mud and sand—for therapeutic purposes. Thalassotherapy spas are always on the coast because sea water cannot be reconstituted and it loses its healing quality soon after being stored. This is good news for beach lovers because you can combine the best of a spa holiday with the pleasures of sun, surf and sand. The health benefits of pure sea water have been proven over hundreds of years. It is very close to human plasma in density and has many of the same components. Only pure sea water collected at least 4 metres below the surface is used to ensure purity—and strict filtering controls guarantee quality. Once pumped from the sea and warmed to body temperature, the mineral rich water is easily absorbed through the skin.
Thalassotherapy has a wide range of treatments that are combined for optimum results. Mud packs, seaweed wraps, water jet massages, warm and cold seawater pools—all have their benefits depending on what you hope to achieve. Thalassotherapy spas are very popular in the Mediterranean due to its ideal climate.
Tunisia is well known for its Spa centres, renowned in the world as one of the best Spa destinations with towns such as Hammamet and Sousse offering the best treatments in Tunisia.
Golf in Tunisia
Tunisia is the ideal destination for the golfer with 6 courses open all year round. Still comparatively undiscovered, the usual hours of waiting for your turn on the fairway are a thing of the past, whilst green fees and golfing lessons are substantially lower than those in Europe.
Carthage Golf Course - La Soukra. 10 km from Tunis - 18 holes par 66, fairways run amidst magnificent stands of eucalyptus, pine, palm and olives trees. Length 4432 meters.
Hammamet Golf Course - Jasmine: Just outside Hammamet resort area. 18 holes par 72, water hazards, practice ground and 9 hole school for beginners.
Hammamet Golf Course - Citrus. Designed around 6 lakes on 300 acres of olive groves and forest near Hammamet beaches . There are 2 courses, "La Foret" 18 holes, par 72. 617 5 meters and "Les Oliviers" 18 holes, par 72 .6178 meters plus a 9 hole school.
El Kantaoui Golf Course - El Kantaoui Sousse Resort Area. 27 holes, par 108. Championship competitions over 9576 meters as well as standard 8433 meters. 18 hole putting green and practice ground . This high level course runs across an olive grove and ends alongside the beach.
Monastir Golf Course - Sousse/Monastir Resort Area. A very technical course overlooking the sea. 18 holes par 72 length 6140 meters. 5 starting areas and 3 hole school.
Tabarka Golf Course - Tabarka Resort Area. Top quality greens 18 par course (can extend to 27) similar to Cypress Point California. 6306 meters and a 9 hole school.
Traveling in Tunisia
In Tunisia there are many types of transport, which facilitate travelling between the various cities and towns. To move between the various corners of the city, the best means are the taxis, available 24hrs per day with the tariffs starting from 300millimes or roughly 15p.
Tram
To travel through Tunis, the tram is the best option, it is available from 5 am 11 pm. They are comfortable and fast (the subway is only in Tunis, not in the other areas).
Buses
There is also the bus, but they are not advisable as they are always full, and it is not always reliable which can be stressful for tourists.
Trains
To move between the areas, trains are available from 5am until 1am, they are usually quite clean and comfortable, if a little slow and crowded during peak periods.
Inter City Buses
This type of bus is advised in cases where travel over larger distances is required, they are comfortable, and inexpensive (approximately, 3 dinars Tunis-Bizerte), and they are available from 5am until 11pm.
Louages
Then there are the Louages, they are like the taxi, but between the larger areas, a louage is a large car of 8 seats including the driver, available at all times, they are not expensive (3 dinars between Tunis and Bizerte for example).
Weather in Tunisia
Although only about the same size as England, the country is geographically diverse. Tunisia includes parts of the three major regions described for Algeria; in the north a narrow coastal strip backed by mountains; a central and western district of mountain and plateau or 'tell' country; and a low-lying region in the south which is either steppe or desert, the fringe of the Sahara.
In recent years Tunisia has developed a large tourist trade, taking advantage of a Mediterranean climate with mild to warm, sunny winters and hot summers that are almost completely dry. The coastal regions, particularly in the north, and the northern mountains have a typically Mediterranean climate with moderate winter rainfall. Occasional rain may occur in the early summer and autumn and this can take the form of heavy but rare downpours. Summers are fine and hot.
The climate becomes progressively drier towards the south of Tunisia and summer temperatures can rise very high inland, since this area has a virtual Sahara climate. Rainfall can occasionally be heavy in spring and autumn although days with rain are rare.
Daily sunshine amounts are high everywhere, ranging from between seven and eight hours in winter to as much as twelve hours in summer. On average, Tunisia has more than 300 days of sunshine per year
Flights to Tunisia
Tunisia has long been established as a tourist destination with many direct and indirect flights from the UK. Currently there are four airlines offering direct flights from UK airports with this figure set to increase once the new airport, currently under construction, completes in Tunisia which will allow budget airlines such as EasyJet and Ryanair to fly into the country.
Thomas Cook offers direct flights from the following UK airports to Monastir:
www.flythomascook.com or www.thomsonfly.com
London Gatwick
London Luton
Manchester
Birmingham
Coventry
Bristol
Doncaster
Newcastle
Glasgow
British Airways offer direct flights from London Gatwick to Tunis.
www.ba.com
TunisAir flies directly from London Heathrow to Tunis.
www.tunisair.com
Nouvel Air Tunisie offer direct flights from London Gatwick to Monastir
www.nouvelair.com
XL airlines offers direct flights from London Gatwick to Monastir in the summer.
www.xl.com
There are many good two leg connecting flights from many UK airports to Tunis or Monastir with Air France or Al Italia and for this we recommend using a site such as www.expedia.co.uk or www.skyscanner.net
Tunisia, Tunis, British Embassy
British Embassy
Rue du Lac Windermere
Les Berges du Lac
Tunis 1053
Telephone: (216) 71 108 700
Fax: (216) 71 108 749 Management
(216) 71 108 789 Consular
(216) 71 108 769 Commercial
Email: TVI.tunis@fco.gov.ukTVI.tunis@fco.gov.uk
Email: TunisConsular.Tunis@fco.gov.ukTunisConsular.Tunis@fco.gov.uk
Website: www.britishembassy.gov.uk/tunisia
Office hours:
1 July to end Ramadan (mid-October)
0730 - 1500 (Local Time) Mon - Fri
0530 - 1300 (GMT) Mon - Fri
End Ramadan (mid-October) - 30 June
0800 - 1630 (Local Time) Mon - Thurs
0800 - 1300 (Local Time) Friday
Tunisia emerging as the next property market to take off.
Major Middle East developers are investing in Tunisia which property analysts believe is the new emerging market set to make an impact in the next five years.The property market is very new. Foreign ownership of residential property was only allowed three years ago. Prices are low, just like they were in Morocco five years ago.
Those investing vast sums of money include United Arab Emirate's Sama Holding (a subsidiary of Dubai Holding) with a $14 billion mixed development project and Dubai-based Emaar have investment projects totalling $1.9 billion.
Official figures are promising. The International Monetary Fund describes Tunisia as having a stable and growing economy with 5.5% GDP growth predicted for 2008 and 5.9% for 2009. Unemployment is dropping and inflation is in check.
Tourism figures are also encouraging. The World Travel and Tourism Council forecasts an annual increase of 4.3% between 2009 and 2018. However, growth may actually be considerably higher since tourism rose by 4.7% during the first half of 2008 with the second 6 months expected to produce similar results.
TripAdvisor ranked Jerba number one among its top 10 emerging tourism spots for 2008. A New York Times article at the end of last year put the country at third place in its list of 53 countries to visit in 2008.
Analysts say it is clearly beginning to attract the attentions of holidaymakers. The country has many beautiful beaches, cultural and historical attractions, combined with days of endless sunshine and hot summers, which means that any investment has the potential of high rental yields, as well as providing an excellent holiday home. Tunisia is an up and coming property market.
"Tunisia's property market may just be in its early stages but with its strong economy and tourist sector, large-scale property investment by Middle East developers and low-entry prices, Tunisia looks well set to become one of the most interesting emerging markets,' said James Gonzalez, market analyst at Obelisk.
Although it is much smaller and has fewer natural resources than its neighbours it has overcome the type of poverty related problems from which Libya and Algeria suffer. The economy is growing and the government is investing in education, tourism and business. It is ranked first in economic competitiveness among African countries according to the World Economic Forum..."
