Ever fancied buying a house in Tunisia? New draft law could make this a reality

An imminent change in the law may benefit Foreign Investors hoping to purchase houses for sale in tunisia.

Foreigners have traditionally found it hard to buy a house in Tunisia as all foreigners must obtain the authorization of the Governorate jurisdiction (the local governor of the province). With no specific time limit as to how long this process can take (maybe years) many investors and would be foreign expats avoid property purchases in Tunisia. To many Tunisian citizens, the necessity for foreigners to obtain authorization has been seen as a good thing in order to avoid the influx of foreign interests, the rise in house prices and an increase in the cost of living for local citizens. On the other hand, according to the Tunisian real estate sector, these obstacles to investment have contributed in slowing recovery in the housing market since events of 2011.

In view of these problems the local government wishing to meet the needs of both local citizens and foreign investors has opted for a Solomonic solution.

In preparation is a simplified legislation whereby the Tunisian government will limit the period in which the issuing of authorization is made to a maximum of three months. The decision has gone down well, and has been judged as rational and courageous by the Council of Ministers. It is worth noting though that the decision has not (as of the date of this article 18/07/14) yet been published on the Jort (the “Official Gazette” of Tunisia) and therefore, has not yet entered into law.  It is also worth noting that this new legislation will not change the current ‘ban’ on foreigners purchasing agricultural land in Tunisia.

Will changes in government authorization for foreign property purchases kick start the Tunisian economy?

It is hoped that these measures will contribute to an improvement in the construction sector and will also help promote residential tourism (foreigners looking for vacation homes) bringing an influx of tourism it is believed can only benefit the local economy as wealthy foreigners will consume local products and generally purchase more luxury goods than local citizens do.

If you are an investor or in the process of buying a house in Tunisia, you must seek assistance from a specialist Law firm in order to follow the formalities required in accordance to local Tunisian law. Giambrone’s Tunisian Law department will be able to advise you on these matters, including: authorizations from the competent Governor, checks for ‘Titre Bleu’ (title deed, proving the effective property right on real estate) and the draught of closing statements to name just a few. If you would like to know more or would like to know how Giambrone Tunisia may help you please make an enquiry here.

Article by Avv. Giorgio Bianco In collaboration with Avv. Dhouha Allagui