Tunisia's Startup Act Explained: What Fintech Founders Get

Tunisia's Startup Act, Law No. 2018-20 of 17 April 2018, was one of the first laws in Africa written specifically for tech startups. Eight years later, more than 1,300 companies have received the Startup Label. For fintech founders the label is useful, but it is often misunderstood. It brings tax, social-security and foreign-currency benefits. It does not give anyone permission to handle other people's money.

What the Startup Act is

The law creates a "Startup Label" that the Ministry of Communication Technologies awards to qualifying companies. Smart Capital, the public company that runs the Startup Tunisia programme, manages applications through the startup.gov.tn portal, and the label is granted by decision of the minister. The law also creates:

• a pre-label for individuals who have not yet incorporated, valid for six months (article 4);
• incentives for founders, for the company itself and for its investors;
• a startup guarantee fund that partly covers investors' stakes if a startup is wound up amicably (article 18).

Who qualifies for the Startup Label

Under article 3 of the law and the criteria published on the Startup Tunisia portal, a company must:

• be less than eight years old;
• have fewer than 100 employees, and a balance sheet or annual turnover below 15 million dinars;
• be more than two-thirds owned by individuals, regulated investment vehicles such as venture funds, or foreign startups;
• have an innovative business model, notably technological, with strong growth potential.

The label lasts at most eight years from incorporation. It can be withdrawn if the company stops meeting the conditions or its obligations. Labelled companies must file their financial statements by 31 March each year.

What founders get

The benefits for individuals are the most distinctive part of the law:

• Startup leave (congé pour création de startup). Up to three founder-shareholders working full time on the startup can take one year of leave from their job, renewable once, and get their post back afterwards (articles 8–9). In private companies with fewer than 100 employees, the employer must agree in writing.
• Startup grant (bourse). Up to three full-time founder-shareholders can receive a grant for one year (article 10). A founder can receive only one grant at a time, even if they run several startups.
• Graduate programmes. Recent graduates keep their rights under public employment programmes for up to three years after the label is granted (article 11).

What the company and its investors get

• Corporate income tax exemption for as long as the label is valid, i.e. up to eight years from incorporation (article 19).
• Social-security contributions, both employer and employee shares, are paid by the State during the label period (article 19).
• A foreign-currency account. Startups may open a special account in foreign currency (article 17). The BCT set the rules in circular 2019-01. The account can receive export revenue and capital from non-residents. It can pay for goods and services linked to the business, staff travel abroad and investments in companies outside Tunisia.
• Patents. The state covers national filing fees and, within available budgets, part of international filing costs (article 12).
• Investor incentives. Capital gains on the sale of startup shares are tax-exempt (article 14), and income reinvested in startups can be deducted (article 13).

What it means for fintech founders

For fintechs, the foreign-currency account has long been the most practical benefit. It lets a company pay for cloud services, software licences and foreign contractors without going through the general foreign-exchange rules. That system is itself under review (see our article on the foreign exchange code reform).

But three limits matter:

1. The label is not a financial licence. A wallet, payment service or lending product still needs approval from the Central Bank of Tunisia, or a partnership with a licensed bank or payment institution. Many fintechs start in the BCT regulatory sandbox.
2. Capital requirements are not adjusted. Founders cited in a 2026 Mosaïque FM report said fintechs face financial requirements designed for large companies.
3. The eight-year clock runs from incorporation. A company that waits years before applying loses part of the benefit period.

Results so far and the "Startup Act 2.0"

The number of labelled startups has grown steadily. The figures below come from Smart Capital, the Ministry and press reports:

• about 327 in August 2020 (Smart Capital, cited by GSMA);
• 1,018 at the end of March 2024 (Kapitalis);
• 1,146 in February 2025, after 69 new labels (Managers);
• 1,352 by July 2026 (Mosaïque FM, cited by MENA Startup Digest).

According to that 2026 report, business software (14%) and e-commerce (11%) are the largest groups of labelled startups, ahead of healthtech and edtech (9% each). Founders also listed recurring problems: complex procedures, poor coordination between government bodies, a small domestic market, competition from the informal economy and late payment on public contracts.

Minister of Communication Technologies Sofiene Hemissi has said that a "Startup Act 2.0" is being prepared with several ministries, with access to finance as the main focus. No draft or timetable had been made public as of October 2026, so founders should plan on the current law for now. For funding options beyond the label, see our guide to raising money as a Tunisian fintech.