Tunisians Living Abroad Benefit from Vehicle Importation Incentives
The possibility of importing a vehicle after a period of residence outside of Tunisia, exempt from various duties and taxes, is one of the key advantages granted to Tunisians living abroad. The FCR (Foreign Resident Tunisian) regime allows for significant vehicle imports, as evidenced by the volume recorded in 2024.
Record-Breaking Vehicle Imports in 2023
In 2023, the value of FCR vehicles reached an absolute record of 1,675.9 million Tunisian dinars (Mtnd), a 44.4% increase year-over-year. Their share in labor income gained 370 basis points to 16.9%.
Boost from Article 24 of the 2024 Finance Law
This surge is largely attributed to the benefits granted to Tunisians living abroad under the FCR regime, as reinforced by Article 24 of the 2024 Finance Law. They can benefit from a total or partial exemption from paying duties and taxes every 10 years when importing or purchasing a motorcycle, passenger car, or professional vehicle (including all-terrain vehicles) with a total weight not exceeding 3.5 tons.
Impact on Local Car Dealerships
At first glance, this seems like a lost market share for car dealerships. However, they gain from selling spare parts and reducing response times to local customer demands, as the market records a significantly higher demand than supply. This is why prices are far from decreasing.
The Elusive Dream of Owning a New Car
Buying a new car has become a daunting project that can block other acquisitions for a middle-income household. Hybrid cars remain inaccessible. Tunisia's four-wheeler taxation needs to be rethought in depth to find a profitable middle ground for all stakeholders.
