Selling a property in Algeria triggers, in most cases, taxation on capital gains — the gap between your sale price and your original purchase price. Many private sellers discover this tax burden at signing and lose up to 15% of their net gain. This guide gives you the complete user manual for capital gains tax in Algeria in 2026: calculation, rates, deductions, exemptions, and diaspora special cases.
What is taxable capital gain?
Real estate capital gain is the difference between sale price and acquisition price, after corrections allowed by the finance law. It is taxed at a flat rate of 15% in Algeria since 2020, paid by the seller only (not the buyer).
Simplified formula:
Taxable gain = (Sale price − Selling costs) − (Purchase price + Acquisition costs + Justified works)
Tax due = Taxable gain × 15%
What can be deducted from purchase price
- Notary fees paid at acquisition (average 5-6% of purchase price)
- Registration duties (5% of initial DGI value)
- Land registry inscription (1%)
- Agency fees at purchase (if justifiable)
- Improvement and extension works, with detailed invoices from approved companies
Caution: routine maintenance and repair works are NOT deductible. Only works that increase value (extension, raising, heavy modernization) enter the calculation.
Holding period deductions
The longer you hold, the less tax you pay. 2026 schedule:
| Holding period | Deduction | Effective rate |
|---|---|---|
| Less than 5 years | 0% | 15% |
| 5 to 10 years | 30% | 10.5% |
| 10 to 15 years | 50% | 7.5% |
| 15 to 20 years | 70% | 4.5% |
| More than 20 years | 100% | 0% |
Total exemptions
- Primary residence: if the property was your effective primary residence for at least 5 years, you are fully exempt
- Holding more than 20 years: automatic exemption
- Transfer between spouses, direct ascendants or descendants: family transfer exempt
- Expropriation indemnity for public interest
- Reinvestment in new primary residence within 24 months (strict conditions)
Worked example 1 — Sale after 8 years
You bought an Algiers 3-bedroom in 2018 for 18 million DZD. You sell in 2026 for 28 million.
- Augmented purchase price (with 6% fees): 18 + 1.08 = 19.08 million
- Justified works: 1.2 million
- Selling costs (0.5%): 140,000 DZD
- Taxable base: 28,000,000 − 140,000 − 19,080,000 − 1,200,000 = 7.58 million DZD
- 8-year holding → 30% deduction → net base = 5.306 million DZD
- Tax due: 5,306,000 × 15% = 795,900 DZD (~2.8% of sale price)
Worked example 2 — Sale after 22 years
Same property, bought 2004 for 8 million, sold 2026 for 28 million.
- Holding > 20 years → 100% deduction
- Tax due: 0 DZD
Diaspora special case
If you are Algerian residing in France (or Belgium, Canada, Spain) and sell an Algerian property, you are subject to two distinct tax regimes:
1. Algerian taxation
The 15% capital gain applies normally, with same holding deductions. Withheld at source by notary at signing.
2. French (or other residence country) taxation
France also taxes foreign capital gains realized by tax residents, at a global rate (tax + social contributions) up to 36.2%. But thanks to France-Algeria double taxation convention (signed 1999, in force), Algerian tax already paid is credited against French tax.
In practice: you'll pay the difference between applicable French rate and Algerian 15%, moderated by French holding deductions (more generous, fully exempt after 22 years for tax + 30 years for social charges).
Recommendation: for any sale of an Algerian property as a France resident, consult a Franco-Algerian accountant before signing. French declaration via form 2048-IMM.
How to pay capital gains tax in Algeria
Tax is withheld at source by Algerian notary at authentic deed signing. The notary computes the gain, applies deductions, and remits directly to the Tax Office. You only receive the net-of-tax sale price.
Documents to provide to justify deductions:
- Initial acquisition deed
- Notary fees proof at purchase
- Improvement works invoices (CNAS-approved companies)
- If exemption claimed: residence certificate, 5-year energy bills
Capital gains tax is never a "surprise" if calculated upfront. On a standard 8-year holding sale in Algiers, count about 2.5-3.5% of sale price.
Legal tax optimizations
- Keep rigorous works file: all renovation invoices (CNAS-approved companies). Can reduce taxable gain by several million DZD.
- Defer sale if near deduction threshold: at 4 years 10 months holding, waiting 2 months bumps deduction from 0 to 30%.
- Demonstrate primary residence: if eligible, total exemption is by far the best optimization.
- Family transfer: exempt but under scrutiny. Document real character (traceable payment).
FAQ — Capital gains Algeria 2026
Does the 15% apply on DGI value or real price?
On the real declared price in authentic deed, after allowed deductions. Not on DGI value.
What if I don't declare the sale in France?
Risk of tax reassessment. France has access to Algerian notarial registries via fiscal cooperation convention. Declaration via form 2048-IMM mandatory within one month of authentic deed.
Can I deduct loan interest?
No, mortgage interest is not deductible from capital gains under Algerian tax law.
What about VEFA (off-plan) sales?
Holding period starts at definitive sale authentic deed date (at delivery), not at preliminary VEFA contract.
Conclusion
Algerian real estate capital gains: 15% with progressive deductions. Beyond 20 years holding, full exemption. Primary residence (5 years min) also exempt. For diaspora, watch double declaration France/Algeria, but non-double taxation convention in force.
Before any sale, estimate your property and simulate tax with our tool. → Start free estimate
For the other tax component (notary fees and registration duties paid by buyer), read our complete Algerian notary fees guide.