Real estate capital gain in Algeria 2026 (difference between sale price and acquisition price + fees) is taxed at 15% flat rate per Tax Code art. 77 amended 2022. Applicable to sales of properties held
2026 capital gain legal framework: amended CGI art. 77
2026 real estate capital gain legal framework: (1) GENERAL TAX CODE art. 77 (amended 2022 finance law): individual real estate capital gain = taxable 15% flat rate. (2) Art. 78: TAXABLE BASE = disposal price - marked up acquisition price. (3) Art. 79: 5% ABATEMENT per year of holding between 3 and 10 years (0%
2026 detailed capital gain calculation: 5 components
2026 DZ capital gain calculation (5 components): (1) DISPOSAL PRICE = sale price excluding real estate agent commissions (net to seller). Ex: 40M DZD sale - 800k agent commission = 39.2M net disposal. (2) MARKED UP ACQUISITION PRICE = initial purchase price + all proven mutation fees (notary, registration duties, agency). Ex: 2020 20M DZD purchase + 1M 5% duties + 500k notary + 400k agency = 21.9M acquisition cost. (3) IMPROVEMENT WORKS proven by VAT invoices (renovation, extension, pool, solar panels): added to acquisition price. Ex: 2M DZD 2022 justified works = +2M. Total marked-up acquisition: 23.9M. (4) GROSS CAPITAL GAIN = 39.2M - 23.9M = 15.3M DZD. (5) HOLDING DURATION ABATEMENT: property held 5 years (2020-2025) = 5% × (5-3) = 10% abatement. Taxable capital gain = 15.3M × 90% = 13.77M. (6) CAPITAL GAIN TAX = 15% × 13.77M = 2.07M DZD. Seller receives 39.2M - 2.07M = 37.13M net after tax (93% disposal).
2026 holding duration abatement: 0-100% progressive
2026 DZ holding duration capital gain abatement (CGI art. 79): (1) 10 years for sale = ZERO tax. Long-term investment fiscally favored.
2026 8 total exemptions: complete list
2026 DZ 8 total capital gain exemptions (CGI art. 80): (1) MAIN RESIDENCE (inhabited > 2 continuous years by seller) — INTEGRAL exemption whatever value. Major case: 70% disposals exempted via this reason. (2) SUCCESSION (inherited property sold by heir) — exemption whatever delay + amount. (3) FORCED SALE (judicial procedure: divorce, liquidation, debt) — constrained seller protection. (4) PUBLIC UTILITY EXPROPRIATION — indemnification not capital gain taxed. (5) rural REMEMBREMENT (agricultural land exchange for reorganization). (6) religious WAKF ASSET DISPOSAL (rare). (7) FIRST-SELLER
2026 DGI declaration procedure: 6 steps
2026 capital gain declaration procedure: (1) NOTARY SALE ACT SIGNATURE + capital gain calculation by seller with notary (marked up base + abatement + possible exemptions). (2) NOTARY WITHHOLDS 15% TAX on sale proceeds (escrow account, paid to DGI within 30 days). Seller receives sale proceeds - tax. (3) G12 FORM filled 3 months post-sale: acquisition + disposal + works + calculations detail. Seller signed. (4) G12 DEPOSIT at wilaya tax office OR jibayatic.dz (preferable). Attached documents: acquisition + sale notarial acts + works invoices + main residence certificates (if applicable). (5) DGI VERIFICATION: market price consistency check (vs DGI Kloufi bases) + works authenticity. 30-60 day delay. (6) IF COMPLIANT: liberatory receipt issued. If gap, adjustment + penalties. Procedure cost: free form + notary already included in mutation. Overall delay 4-6 months.
2026 concrete case: Nadia sells F3 Algiers 2 different cases
2026 typical case: Nadia owns F3 Bab Ezzouar bought 2018 for 12M DZD (15% fees), sells 2026 for 22M. Two scenarios: (1) SCENARIO A — MAIN RESIDENCE Nadia (inhabited 8 years): capital gain ENTIRELY EXEMPTED (CGI art. 80). Nadia receives 22M net sale (minus 4% agent commission). Capital gain tax = 0 DZD. (2) SCENARIO B — RENTAL INVESTMENT (never inhabited by Nadia): taxable capital gain. Calculation: marked up acquisition = 12M + 15% fees = 13.8M. 2021 works = 1.5M proven. Total acquisition = 15.3M. Gross capital gain = 22M - 15.3M = 6.7M. 8-year holding → 55% abatement. Taxable capital gain = 6.7M × 45% = 3.015M. Tax = 15% × 3.015M = 452,250 DZD. Nadia receives 22M - 880k commission - 452k tax = 20.67M net. DIFFERENCE 2 scenarios: 452k DZD tax avoided + main residence morality. Tip: main residence proof = utility bills + electoral registration + employer attestation + testimonies.
Frequently asked questions
Does diaspora pay increased mutation duties 2026?
No, binational diaspora = same 5% classic / 3% direct line as DZ resident. Pure foreigner = 8-10%.
Is 15k flat IFU mandatory for all renters 2026?
No — flat if income
Main residence capital gain always exempted 2026?
Yes if inhabited > 2 continuous years by seller. Prove via utility bills + electoral registration + employer attestation.
19% VAT recoverable for individual buyer 2026?
No — individual never recovers VAT. Only VAT-liable professionals (promoters, companies) recover via G50 declaration.
Holding > 10 years = zero capital gain tax 2026?
Yes — 100% abatement for assets held ≥ 10 years. Fiscally optimal long-term investment strategy.