VAT on New Homes in Tunisia in 2026: 7% or 19%, What You Actually Pay
⟳ Machine translation
By Slim, editorial lead at menzili.tn, a real estate listings portal in Tunisia covering all 24 governorates.Published on 18 September 2026. Next update scheduled for January 2027, after the 2027 Finance Law is adopted.
Two new apartments in the same residence. The first is listed at 400,000 TND excluding VAT, the second at 405,000 TND. On the brochure, a 5,000 TND gap. At signing, almost 54,000 TND.
No typo here. This is the effect of the 400,000 TND VAT threshold, introduced by the 2025 Finance Law and kept unchanged in 2026. Yet many online guides still quote a single 19% rate on new homes, or talk about a "cut from 13% to 7%" even though the 13% rate no longer exists. The result: buyers comparing developments with the wrong numbers.
This guide sets out the rules that actually apply in 2026, runs the numbers bracket by bracket, and lists what to check with the developer before paying any deposit.
What VAT rate applies to a new home in Tunisia in 2026?
In 2026, a new home intended for residential use and sold by a real estate developer in Tunisia is subject to 7% VAT if its price does not exceed 400,000 TND, and 19% above that. A home bought from a private seller is not subject to VAT.
The 400,000 TND rule
The mechanism works like a switch, not a progressive scale. Below the cap: 7% on the entire price. Above it: 19% on the entire price, not just on the portion above 400,000 TND. Nothing like income tax, where each bracket has its own rate.
One point deserves your attention. The texts reported in the press refer to the "value" or "price" of the property without always specifying whether it is the amount excluding or including VAT. Our calculations assume a cap assessed excluding VAT. If the VAT-inclusive price is what counts, the real threshold drops to about 373,800 TND excluding VAT (400,000 ÷ 1.07). In practice? Get the basis confirmed in writing, by the developer or your notary, before committing.
Where this regime comes from
For years, home sales by developers were taxed at 13%, with a move to 19% announced and then postponed from one finance law to the next. The 2025 Finance Law settled the matter: the 13% rate was abolished, a reduced 7% rate was created for homes up to 400,000 TND, and 19% applies above that (summary of the 2025 Finance Law, ilboursa, in French).
The 2026 Finance Law, adopted in December 2025, did not change this regime, which should be verified against the texts in force. An amendment proposed raising the cap from 400,000 to 500,000 TND: it was rejected in committee, with the Ministry of Finance opposing it.
And the famous "20,000 TND in savings" figure repeated everywhere? It dates from January 2025. The Director General of Housing, Nejib Snoussi, calculated it against the old 13% rate (La Presse, TAP dispatch, in French). In 2026, the right comparison is with 19%, and the gap is much wider.
Which homes qualify for the 7% VAT rate?
The 7% VAT rate applies to new homes intended for residential use, sold by a real estate developer, and priced at no more than 400,000 TND. The three conditions are cumulative: miss just one, and you lose the reduced rate.
What is covered
An apartment in a residence, a duplex, a villa built by a developer on a housing estate: the type of property matters little, as long as it is residential and sold by a professional developer. A one-bedroom apartment (S+1) in Sahloul, a three-bedroom (S+3) in Jardins de Carthage and a semi-detached villa in Hammamet fall under the same regime. Only the price makes the difference.
What is not covered
- Buying from a private seller: no VAT at all, since the seller is not VAT-registered. You do, however, pay registration duties, whose regime was amended by the 2026 Finance Law.
- A shop or office sold by a developer: it is not residential, so it stays outside the reduced rate.
- Undeveloped land: the measure targets built property; a plot of land is not covered.
The case of social housing
Social housing units financed by FOPROLOS (the Housing Promotion Fund for Salaried Workers) and bought from developers remain VAT-exempt, shared parking included. If your application is eligible, that beats 7%.
How much you save: worked examples
On a new home priced at 300,000 TND excluding VAT, 7% VAT amounts to 21,000 TND, versus 57,000 TND at 19%. The saving reaches 36,000 TND, or 12% of the pre-tax price. The closer the property gets to the cap, the bigger the saving, up to 48,000 TND for a home at 400,000 TND excluding VAT.
| Price excl. VAT | Rate applied | VAT paid | Price incl. VAT | VAT at 19% | Saving |
|---|---|---|---|---|---|
| 250,000 TND | 7% | 17,500 TND | 267,500 TND | 47,500 TND | 30,000 TND |
| 300,000 TND | 7% | 21,000 TND | 321,000 TND | 57,000 TND | 36,000 TND |
| 350,000 TND | 7% | 24,500 TND | 374,500 TND | 66,500 TND | 42,000 TND |
| 400,000 TND | 7% | 28,000 TND | 428,000 TND | 76,000 TND | 48,000 TND |
| 405,000 TND | 19% | 76,950 TND | 481,950 TND | 76,950 TND | 0 TND |
| 450,000 TND | 19% | 85,500 TND | 535,500 TND | 85,500 TND | 0 TND |
menzili.tn calculations, September 2026, assuming a cap assessed excluding VAT.
Take a concrete case. A new two-bedroom apartment (S+2) of 110 m² in La Soukra, offered at 3,300 TND per m² excluding VAT (illustrative price), comes to 363,000 TND excluding VAT. With 7% VAT, the final bill is 388,410 TND. The same apartment taxed at 19% would have cost 431,970 TND. That's a 43,560 TND difference: more than half of a 20% down payment on this property.
The threshold effect: 5,000 TND more on the listing, 54,000 TND more at signing
Crossing the 400,000 TND mark excluding VAT, even by a few thousand dinars, switches the entire price from 7% to 19%. A property at 405,000 TND excluding VAT therefore costs 481,950 TND including VAT, versus 428,000 TND for one at 400,000 TND: 53,950 TND more for a 5,000 TND gap on the listing.
In practice, this step creates a trap zone between roughly 400,000 and 450,000 TND excluding VAT. An apartment listed at 420,000 TND excluding VAT ends up at 499,800 TND including VAT. If the developer agrees to come down to 400,000 TND, you pay 428,000 TND. The developer gives up 20,000 TND of revenue; you save 71,800 TND. For a developer with units still to sell, that's worth discussing.
Our view is clear: if you like a development and its pre-tax price sits just above the cap, negotiating isn't optional, it's the first thing to do. Also look at what the price includes. A parking space or storage room included in the same deed can be enough to push the total over 400,000 TND. Some sellers offer to invoice them separately: ask your notary before accepting this arrangement, because the tax treatment of the entire transaction is at stake.
Before signing: 5 checks with the developer
Before paying anything, insist that the reservation contract states the price excluding VAT, the VAT rate applied and the VAT-inclusive amount. Those three written lines protect you if a dispute arises when the final deed is signed.
- Excluding or including VAT? A brochure showing "395,000 TND" with no detail tells you nothing. If that amount excludes VAT, you'll pay 422,650 TND at 7%. If it includes VAT, the property is worth 369,159 TND excluding VAT.
- Is the VAT rate written in the contract? If not, have it added. A written "7%" is worth more than ten verbal promises at the sales office.
- What does the price include? Parking, storage room, private garden, STEG (electricity) and SONEDE (water) connection fees: every item included counts toward the threshold.
- Does the contract have a certain date? Have the reservation contract registered at the tax collection office (recette des finances), which gives it a legally certain date ("date certaine"). In late 2024, with the announced rise from 13% to 19%, it was the contract's certain date that allowed buyers to keep the old rate. If a future finance law changes the rates, this reflex could be worth tens of thousands of dinars.
- Is the seller really a real estate developer? Ask for their tax ID number and the project's building permit. A private individual who builds and then sells does not charge VAT, but the legal framework of the sale is not the same.
FAQ: VAT on new homes in Tunisia
Is the 400,000 TND threshold calculated excluding or including VAT?The published texts refer to the value of the property without always specifying the basis. Our calculations use the pre-tax amount; if the VAT-inclusive price applies, the real threshold falls to around 373,800 TND excluding VAT. Get the basis confirmed in writing, by the developer or the notary.
Does a home sold for 405,000 TND pay 19% on the whole price?Yes. The 19% rate applies to the entire price, not only to the 5,000 TND above the cap. Hence a gap of almost 54,000 TND between a property at 400,000 TND and one at 405,000 TND excluding VAT.
I'm buying a new apartment from a private seller: do I pay VAT?No. A private seller is not VAT-registered, so the sale carries no VAT. The buyer does, however, pay the registration duties linked to the transfer of ownership.
Can the 7% VAT rate be combined with the Premier Logement (first home) programme?The two schemes are separate. In January 2025, the Ministry of Equipment and Housing estimated that the VAT cut reduced the cost of a home bought through the Premier Logement programme by around 13,000 TND. The programme has its own price cap, below 400,000 TND: check the current conditions with your bank.
Will the 7% VAT rate on new homes last?It was renewed unchanged by the 2026 Finance Law. No finance law binds the next one: the 2027 law, examined by the Assembly of the Representatives of the People (ARP) at the end of the year, may change it. menzili.tn will update this guide as soon as it is adopted.
Finding a new home under the 400,000 TND threshold
The simplest way to benefit from the 7% rate is to target developments under the cap from the start. On menzili.tn, a real estate listings portal in Tunisia covering all 24 governorates, the new builds section (Immo neuf) gathers developers' projects. You can also browse apartments for sale in Tunis or in Ariana.
Are you a developer? Publish your projects on menzili.tn, clearly stating the pre-tax price and the VAT rate: it's the first question buyers ask.