Despite implementation of economic reforms aimed at liberalizing the economy, encouraging private sector growth, and attracting foreign investment, the Tunisian economy continues to have significant levels of government involvement and regulation. Government and state-owned institutions still dominate several key economic sectors, such as finance, hydrocarbons, pharmaceuticals, transportation, and utilities.

While the government has taken steps to reform tax procedures, businesses continue to perceive the taxation system as complex, cumbersome, lacking coherence, and subject to political interference. 

The market is also affected by substantial price regulation and subsidies. The government regulates prices of socially important commodities, including sugar, flour, gasoline, propane, milk, and cereals. Per the 2025 budget law, the Tunisian government is expected to spend the equivalent of about 7.7% of GDP on transfers and subsidies with about 61% of all subsidy expenditures going to energy products. These subsidies benefit all households, irrespective of income.

The 2016 Investment Law provided welcome modernization to the Investment Code of 1993, but some regulations remain complicated.  While the government is working on improvements, the pace of reforms is slow.  In 2018, the government adopted ministerial decree #417, which listed 100 economic activities requiring government authorization for investment (the “negative list”). The sectors include natural resources and construction materials, transportation by land, sea, and air, banking, finance, insurance, hazardous and polluting industries, health, education, telecommunications, and services.  

The Tunisian Central Bank must give prior approval for foreign-exchange transactions and may apply restrictions to foreign-exchange accounts and operations.  However, certain offshore foreign investors are not subject to this requirement.  Under Tunisian investment law, repatriation of funds and assets is free for all non-resident companies (firms with more than 66% foreign ownership). For firms with less than 66% foreign ownership, a request must be filed with the Central Bank to repatriate funds and assets.  

Tunisia recognizes two investment regimes: “offshore” and “onshore.”  Offshore investment, in general, supports export-only goods and services and benefits from several tax breaks and other incentives.  Onshore investment is directed primarily toward commerce within the Tunisian market. Foreign investors are often required to partner with a local Tunisian firm for onshore investment, with few exceptions. 

Many U.S. companies describe the Tunisian bureaucracy as cumbersome, slow, and burdened with a regulatory environment that lacks coherence and consistency. The government decision-making process can appear opaque and at odds with its official, pro-business posture. However, favorable business results can be obtained with adequate planning and sufficient lead times.  

Imports from the EU often enjoy a considerable price advantage over those from other countries. Under Tunisia’s 2008 Association Agreement with the EU, most non-food EU products are exempt from import duties. Despite the demand for U.S. goods, U.S. companies remain at a disadvantage due to additional costs associated with transportation, third-party distribution channels, and the depreciation in recent years of the Tunisian dinar against the U.S. dollar.

The EU and many European countries offer excellent financing terms for trade, and Tunisian companies are familiar with these opportunities. Tunisians are however generally unfamiliar with financing opportunities available to them when purchasing U.S. goods. The U.S. Embassy in Tunis works closely with the U.S. Export-Import Bank (EXIM), the U.S. International Development Finance Corporation (DFC), and other U.S. organizations to promote awareness of financing options.   

Local law prohibits the export of foreign currency from Tunisia to pay for imports without first submitting to the bank documents confirming that the merchandise was shipped.  Usually, a freight forwarder or Tunisian Customs provides documentation that satisfies this requirement.  In past transactions, U.S. exporters have used confirmed irrevocable letters of credit, or letters of credit that authorize “payment against documents.”