At $716 per month to live on, Tunisia is one of the most affordable Mediterranean destinations for Europeans. Yet the average Tunisian does not earn even half that amount through wages. A closer look at a report that tells two very different truths at the same time.
The 2026 Cost of Living report by Wise.com puts the monthly cost of living for a single person in Tunisia at $716, placing the country in the middle of the regional ranking.
But that figure takes on a very different meaning depending on whether it is viewed through the lens of a Tunisian salary or a European pension. It is precisely this dual perspective that makes the analysis so interesting.
A report designed for foreigners, not Tunisians
Before interpreting the figures, it is important to understand the intended audience. Wise is a British fintech company specializing in international money transfers and multi-currency accounts. Its target market is clear: expatriates, digital nomads, retirees moving abroad, and foreign workers.
The Tunisia page on Wise is not designed for Tunisians living in Tunisia. It is aimed at a French, German, or Italian citizen wondering whether retirement in Sousse or La Marsa is financially viable. That distinction changes everything.
For Tunisian workers, life Is unaffordable
According to Wise, Tunisia’s average monthly net salary stands at $333, equivalent to just 46.5% of the estimated monthly cost of living of $716.
In practical terms, the average worker covers less than half of their basic living expenses through their salary alone. This ratio is less favorable than in Morocco (60%), Algeria (58%), and Kenya (around 50%) and far behind Gulf countries, where Saudi Arabia reaches 150% and the United Arab Emirates 140%.
Only Egypt (31%) and Nigeria (10.5%) perform worse, but these are extreme cases of wage impoverishment. Tunisia is not the most expensive country in the region, but it is among those where average salaries provide the weakest purchasing power relative to living costs.
For European retirees, Tunisia is a great deal
For a French retiree receiving a net pension of €1,500–2,000 per month, or a German retiree receiving €1,800–2,500, Tunisia is a highly attractive Mediterranean destination.
With a monthly cost of living of $716, Tunisia compares very favorably with other countries around the Mediterranean:
Portugal: around $1,500 per month
Spain: around $1,800
Greece: around $1,200
Italy: around $1,900
France: around $2,200
Tunisia therefore offers living costs that are two to three times lower than many European alternatives.
Just a 90-minute flight from Paris or Rome, with a mild climate, widespread use of French, a safety score of 61 on the Wise index, and a rich cultural heritage, Tunisia represents one of the best value-for-money destinations in the Mediterranean for retirees earning income in stronger currencies.
Two economies within the same country
These two realities coexist within the same territory, creating a phenomenon that Tunisian economists are increasingly studying: the gradual alignment of certain market segments with foreign purchasing power rather than local incomes.
This is visible in the property markets of La Marsa, Gammarth, Hammamet, and Djerba, where prices are increasingly set in practice according to euro- or dollar-based purchasing power.
It is also evident in high-end restaurants, premium services, and tourist zones, where meal prices have doubled over the past five years despite little relation to movements in the Tunisian dinar.
Economists describe this mechanism as an “inverse expatriate rent.” Foreign pensions and salaries imported into Tunisia command far greater purchasing power than local incomes, pushing up prices for goods and services exposed to international demand.
Tunisia’s real challenge
The answer to whether Tunisia is expensive or affordable depends entirely on who is asking the question.
For the average Tunisian, life is too expensive relative to earnings.
For a European retiree, Tunisia is one of the most competitive destinations in the Mediterranean.
The Wise report says exactly that, provided it is read in the proper context.
The real challenge for Tunisia is therefore not whether the country is expensive. Rather, it is how to prevent Tunisia from becoming a place where it is increasingly advantageous to live on foreign income, while becoming progressively less viable for those relying on Tunisian wages.
The 2026 Wise update paints the picture of a country where everyday expenses remain relatively affordable, but where average salaries struggle to cover the full cost of a standard basket of living expenses for a single person. Significant differences between central Tunis and cities such as Sfax also suggest that choosing where to live remains an important factor.
The indicators presented, cost of living, rents, restaurant prices, average salaries, and related metrics, are primarily intended for expatriates, prospective residents, long-term travelers, and digital nomads considering a move to Tunisia.
Source: Wise.com Cost of Living Index 2026
