Economy Guide in Tunisia
Economic overview, job market trends, income levels, and financial landscape for expats
GDP
$46.69B
Total economic output of the country
HDI
0.73
High human development
Quality of Life
51/100
Good quality of life — above global average
Purchasing Power
14/100
Very weak purchasing power — limited buying capacity
Cost of Living Index
Very affordable costs (CPI: 29.3). Groceries (35.8) and restaurants (18.1) are significantly cheaper than in NYC.
Housing Market
Property prices are considered expensive, averaging 12.7 years of household income. The rental market (index: 5.0) is very affordable.
Average Income Levels
Purchasing power is low, with an index of 38.3 compared to NYC. This indicates significantly lower buying power for residents.
Tax System
Tunisia has a progressive income tax system with rates up to 35% for residents and a flat 20% for foreign workers in certain sectors. The standard VAT rate is 19%, with reduced rates of 7% and 13% for specific goods and services. Property taxes include an annual tax (8-15% of rental value) and a 15% capital gains tax on sales, though incentives exist for new businesses.
Business Environment
Tunisia's business environment is improving, with its startup ecosystem ranked #82 globally in 2025. The Startup Act provides legal recognition, tax incentives, and streamlined procedures for entrepreneurs. While business entry is strong, challenges remain in regulatory efficiency and dispute resolution.
Social Security
Tunisia has a comprehensive social security system. Healthcare is managed by the National Health Insurance Fund (CNAM), covering over 90% of the population, with public and growing private sector options. Contributory pension schemes provide old-age, disability, and survivor benefits, with minimums linked to the legal minimum wage. Unemployment benefits are available for up to 12 months for eligible workers, and family allowances are also provided.
Banking & Financial Safety
Deposits in Tunisia are protected by the Fonds de Garantie des Dépôts Bancaires (FGDB) up to 60,000 TND (approximately USD 20,820) per depositor per bank. The Central Bank of Tunisia actively supervises the banking sector and is implementing Basel III-aligned capital rules by the end of 2026 to enhance financial stability.
Deposit Protection: up to $20,820 USD (see sources)More Insights for your Move to Tunisia
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