Investing in Tunisia
Law Firm for Investing in Tunisia
Tunisian investment legislation offers numerous opportunities, incentives, and guarantees to investors through an attractive legal framework that has been recently reformed to provide greater flexibility, openness, and appeal for both local and foreign investors.
The Investment Law:
Law No. 2016-71 of September 30, 2016, relating to investment, aligned its provisions with international investment standards, particularly regarding market access, incentives, institutional frameworks, and arbitration. Its primary objective is to stimulate foreign investment.
This law was presented to local and foreign investors during the International Investment Conference held in Tunis on November 29 and 30, 2016.
One of the key advantages of this legislation is that investors may implement their projects through the Tunisian Investment Authority, which serves as a single point of contact responsible for guidance, support, and assistance throughout the investment process.
The law also allows foreign investors to acquire real estate for the purpose of carrying out their investment projects, whereas previously such acquisitions were generally restricted to industrial and tourism zones.
Furthermore, foreign investors are permitted to employ up to 30% foreign executive staff during the first three years of operation (calculated from either the company’s incorporation date or the commencement of business activities, at the investor’s discretion). This percentage may be increased upon authorization from the Ministry responsible for Employment.
The law also grants foreign investors the right to freely transfer their profits and assets abroad. In this regard, it limits the discretionary powers of the Central Bank, simplifies administrative procedures, and establishes specific response deadlines, with decisions being formally communicated to the foreign investor.
In addition, the law guarantees the protection of property rights against unlawful interference and ensures equal treatment of foreign and Tunisian investors without discrimination.
Law No. 49 of November 27, 2015 on Public-Private Partnerships (PPP)
By enacting this law, the State reaffirms its commitment to developing public-private partnerships (PPPs).
This legislation aims to diversify project financing sources and tendering mechanisms, with the objective of developing infrastructure and fostering cooperation between the public and private sectors.
The law provides that PPP projects must first undergo a technical and economic feasibility study demonstrating public profitability.
Such partnerships take the form of a partnership agreement signed between the public partner and the private partner. The public partner may also participate in the capital of the project company, subject to a minimum level of participation.
Finally, in order to encourage banks to co-finance projects, the State may mortgage the infrastructure developed by the private partner as loan security.
The Law on Electricity Generation from Renewable Energy Sources:
Law No. 12 of May 11, 2015, relating to electricity generation from renewable energy sources, aims to address the growing energy deficit, achieve energy independence, and diversify the energy mix while mitigating the impact of fluctuations in international oil and gas prices.
To achieve these objectives, this law promotes the development of renewable energy by strengthening electricity supply in Tunisia, encouraging private sector initiatives in this promising field, and liberalizing electricity production and export activities.
The law establishes three regimes for the implementation of electricity generation projects from renewable energy sources, which are particularly relevant for operators in the sector:
- Self-consumption
- Independent electricity production for local consumption
- Electricity export
Government Decree No. 388 of March 9, 2017
This decree establishes the organization of the High Council for Investment, the Tunisian Investment Authority, and the corresponding fund. It defines their administrative and financial functioning.
Décret gouvernemental n°389 du 9 mars 2017
This decree specifies the financial incentives granted to investors. To benefit from them, the investor must, in particular, submit an investment declaration, finance at least 30% of the project, maintain compliant accounting records, and be in good standing with tax obligations.
Legal Framework for Startups
The Startup Label is granted subject to specific conditions relating to the company’s age, size, capital structure, and the innovative nature of the project.
Advantages of the Startup Label
The label notably provides exemption from corporate income tax, coverage of salary-related charges, the opening of a foreign currency account, access to the technology card, and simplified customs procedures.
Advantages for Investors in Startups
Les investisseurs bénéficient de déductions fiscales sur les montants investis et d’une exonération de l’impôt sur la plus-value lors de la cession de participations.
Investing in regulated sectors
The sectors concerned include, in particular: education, telecommunications, health, natural resources, transport, banking and insurance, hazardous industries, and certain commercial and service activities.
Investing in Renewable Energy
Law No. 12 of May 11, 2015 encourages the production of electricity from renewable energy sources in order to reduce the energy deficit and promote energy independence. It provides for three regimes: self-consumption, independent production for the local market, and electricity export.Cette loi a été renforcée par la loi n°47 du 25 mai 2019 visant l’amélioration du climat des affaires.
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