Tunisia Economy Overview

Currency

Tunisian Dinar (TND)

Working hours

40 hours/week

Public/bank holidays

7 public holidays

Capital

Tunis

Languages

Arabic (official), French widely used in business and administration

Population

~12 million

Minimum hourly salary

Around TND 2.06 (varies by sector and weekly hours)

Tax year

1st Jan – 31st Dec

Date format

YYYY/MM/DD

Misclassification penalties

In Tunisia, penalties for worker misclassification include back payments for wages and social security contributions, fines, interest on unpaid amounts, and potential legal liabilities.

Fun fact

Tunisia is home to the ancient city of Carthage, once a powerful hub of the Carthaginian Empire that rivaled Rome. The archaeological sites of Carthage are a UNESCO World Heritage Site.

The Republic of Tunisia is a small North African country on the Mediterranean coast sandwiched between Algeria and Libya and is home to Africa’s northernmost point. Fewer than 350 miles from the southern coast of Italy, this country has a long and complex history. It was the home of Carthage before being taken over by the Romans and then the Ottomans, followed by a period as a French possession. In 1956, Tunisia gained independence, and since that time, it has grown significantly. 

The country’s population has doubled since 1980 to reach an expected 12.43 million in 2025. The GDP has increased at a much greater rate, increasing to over five times its value during the same period thanks to intense trade with the European Union (EU). This is a middle-income country with a diverse economy and a strategic location that presents plenty of opportunities for international businesses. In this article, we’ll guide you through the ways you can enter this market or hire Tunisian workers to add value to your business.

Overview of Tunisia’s Economy

Tunisia uses the Tunisian dinar (TND), which is worth roughly one-third of the US dollar (1 TND = 0.03 USD). The GDP of this country was worth $52.64 billion (around 169 billion TND) in 2024 and is expected to grow by 1.6% in 2025. Growth in the past has been powered by development in petroleum, car parts, food products, phosphates, and tourism.

Services in Tunisia make a 64% contribution to GDP, while industry contributes 24% and agriculture around 10%. At the same time, services employ around 53% of workers, industry 33%, and agriculture 14%. Currently growing industries include ICT, automotive, aeronautics, agri-food, textiles, and pharmaceuticals.

Sector Contribution to Tunisia’s Economy
Services 64% of GDP
Manufacturing 24% of GDP
Agriculture  10% of GDP

The per capita GDP in Tunisia reached $4,270 in 2024 and is expected to rise to $4,400 in 2025, making this a middle-income country. The cost to hire workers here is low. The national minimum wage is 20.320 TND/day (around 6.42 USD) for agricultural workers, 448.238 TND/month for 40-hour-workweek workers (around 141 USD), and 528.320 TND/month for 48-hour-workweek workers (around 167 USD). While employers also need to pay an additional 16.57% of worker’s salaries toward social security schemes, employees in Tunisia can still cost a lot less than in other countries.

Taxes

Employer Tax: 16% – 25%

Social Security

16%+ (sometimes higher, depending on the sector and specific scheme) to the National Social Security Fund (CNSS).

Vocational Training Tax

A separate levy of about 1% – 2% of payroll may apply, depending on the employer’s activities.

Employee Tax: 9-10%

Social Security

This typically includes contributions for pensions, disability, family benefits, and health coverage.

Income Tax

Tunisia employee income tax is charged on a progressive basis.

Gross Income (TND)

Up to 5000

5,001 – 10,000

10,001 – 20,000

20,001 – 30,000

30,001 – 40,000

40,001 – 50,000

50,001 – 70,000

More than 70,000

Tax Rate

0%

15%

25%

30%

33%

36%

38%

40%

Overview of Tunisia’s Business Regulation

Tunisia is open to and encouraging of foreign investment and has even set up business parks and other free points to entice investment with significant tax reductions. If you want to set up a business in Tunisia, here are some of the regulations you should be aware of to proceed compliantly:

Registration and Compliance

Most foreign investors looking to set up businesses in Tunisia choose to incorporate either limited liability companies (LLCs) or public liability companies (PLCs). Branch offices are also possible. An LLC can be set up with just two shareholders and one director of any nationality, and a share capital of $500. A PLC needs seven shareholders and three directors and must have $3000 in share capital. However, PLCs normally can’t be more than 49% foreign-owned.

The World Bank gives Tunisia an excellent score of 94.6% for ease of setting up a business and a ranking of 19th in the world. The process of incorporating an LLC can take as few as nine days and involves the following three steps:

  • Reserving a unique company name with the National Center for Company Registration
  • Opening a special bank account and depositing the paid-in shared capital in it

Submitting an application at the Agence Nationale de la Promotion de l’Industrie et de l’Innovation, APII (APII) One-Stop Shop to register with the commercial registry, labor inspectorate, tax authority, and social security, and to obtain a company seal.

The corporate tax rate (CIT) varies from 10-35% in Tunisia. The standard rate is 15%, but some types of activities receive a discount of 10%. The rate is as high as 35% for banks, offshore financial institutions, franchisees of foreign brands, hydrocarbon producers and service providers, and several other organizations. VAT is generally 19% though some operations receive lowered rates of 13% and 7%. Employers pay 16.57% on top of workers’ salaries to social security schemes, between 0.4% and 4% for work accident and occupational disease coverage for workers, and a 1% social lodging tax.

In free zones, however, companies can benefit from a 10% CIT rate, an exemption from paying VAT on local purchases, and an exemption from paying customs duties on raw materials, goods, and equipment.

Employment Laws

Tunisians normally work 40-hour or 48-hour weeks. A 48-hour worker must be paid 175% of normal wages for overtime hours, while a 40-hour worker is paid 125% for the first eight hours and 150% for subsequent hours of overtime.

Tunisians are entitled to 15 calendar days of annual leave, and this allowance increases by one day per year for every five years of service to a maximum of 21 calendar days. Workers also receive six paid public holidays per year.

Mothers receive 30 days of maternity leave, paid at two-thirds of their normal salaries through social security. Fathers receive one day of paternity leave fully paid through social security.

Workers should receive at least one month’s notice prior to termination and may be entitled to between one and three months’ severance pay.

Intellectual Property

Copyrights in Tunisia last for the author’s lifetime plus 50 years. Trademarks can be registered for ten years and then renewed for ten-year periods. Patents are protected for 20 years.

What Are the Benefits of Doing Business in Tunisia?

There are many reasons why doing business in Tunisia can be a very good idea. These include:

  • Favorable trade agreements
  • Decades of economic growth
  • Skilled workforce
  • Affordable labor
  • Access to African and European markets
  • Ease and speed of incorporating entities
  • Free zones offering substantial tax reductions

What Are the Downsides of Doing Business in Tunisia?

There are clear advantages to doing business in Tunisia, but there are also downsides to be aware of. These can include the following:

  • Lack of foreign ownership for PLCs
  • Political uncertainty following a bloodless coup in 2011
  • Bureaucratic hurdles
  • Labor unrest and protests 
  • Infrastructure gaps

International Expansion into Tunisia

If you’re interested in expanding into Tunisia, you have several options at your disposal. These can include setting up an entity to enter the local market or simply hiring Tunisians to work for you remotely.

Tunisia Employer of Record (EOR)

An EOR or Employer of Record also manages HR concerns for your employees, including payroll and benefits. However, it provides the special service of hiring employees on your behalf when you don’t own an entity in the country. This is a good way to get Tunisians on your payroll quickly to test the waters in the country or employ them to work remotely for your organization.

LEARN MORE

Recruitment Agencies

Recruitment agencies in Tunisia help businesses expand by connecting them with skilled local talent across various industries.

Remote People provides recruitment solutions that simplify hiring and ensure compliance with Tunisian labor laws.

For businesses looking to grow in Tunisia, Remote People offers the expertise and resources needed to build a local workforce quickly and effectively, making it a practical solution for market expansion.

LEARN MORE

Tunisia Professional Employer Organization (PEO)

A PEO or Professional Employment Organization is a service provider that helps manage HR for your employees if you already own an entity in Tunisia. It can assist you with compliance and management of your local workforce.

LEARN MORE

Tunisia Subsidiary Incorporation

It’s not only possible but also quick and easy to register an entity in Tunisia. As stated earlier, most investors choose to incorporate LLCs or PLCs, with LLC registration taking as few as nine days. The downside to opening a PLC, however, is that it can’t be more than 49% foreign-owned. Once you have your own entity in Tunisia, you can hire local workers and start doing business in the local market.

Tunisia Branch Office

It’s possible to set up a branch office of a company already registered in another country. The parent company is liable for all the losses and debts the branch incurs in its operations which are limited to those allowed for the parent. A branch needs to have one director of any nationality resident in Tunisia during the registration process. 

A representative office is another possibility. It must have one director resident in Tunisia and its activities are limited to performing market research and promoting the parent company only.

Business Opportunities in Tunisia

Tunisia has emerged as an appealing destination for businesses looking to establish a foothold in the region. The country’s diversified economy, strong ties to Europe, and ongoing reforms to foster entrepreneurship make it ripe with potential for various sectors. Tunisia’s growing reputation as a tech hub, combined with its rich agricultural resources and thriving tourism industry, offers a range of lucrative opportunities for investors and entrepreneurs seeking dynamic markets with room for expansion. 

Business OpportunityReason for Opportunity
Technology and IT ServicesTunisia is becoming a regional tech hub with skilled talent, government incentives, and high demand for IT solutions.
Renewable EnergyAbundant solar and wind resources, combined with the government’s renewable energy targets, drive investment potential.
Agribusiness and Food ProcessingTunisia excels in olive oil and date production, offering opportunities for value-added food exports.
Tourism and HospitalityHistorical and cultural richness makes Tunisia attractive for sustainable tourism investments post-pandemic.
Automotive Components ManufacturingProximity to Europe and competitive labor costs position Tunisia as a leader in automotive component exports.

Tunisia’s economic reforms, skilled workforce, and proximity to key global markets make it a compelling choice for businesses looking to diversify their operations. The country is actively fostering an entrepreneurial environment, supported by incentives for foreign investors and an improving business climate.

By capitalizing on its strengths in technology, renewable energy, agriculture, tourism, and manufacturing, Tunisia offers an entry point into the broader African and Mediterranean markets. Whether you’re a startup or an established firm, exploring these opportunities in Tunisia could lead to significant long-term growth.

Are you interested in doing business in Tunisia? Remote People can help. To navigate the complexities of market entry and workforce expansion, get in touch with Remote People’s business expansion services for seamless growth.