Algeria Capital Gains Tax Guide 2026

CGT on Shares — 20%

Capital gains from the sale of shares and securities in Algerian companies are taxed at a flat rate of 20%. The gain is calculated as the difference between the sale price and the acquisition cost, adjusted for any capital increases or decreases. This tax applies to both resident and non-resident sellers. For shares listed on the Algiers Stock Exchange (Bourse d'Alger), the gain is subject to the same 20% rate. Losses on share sales may be offset against gains from similar transactions in the same year but cannot be carried forward.

CGT on Property — 15% (0% After 5 Years)

Capital gains from the sale of real property are taxed at 15%. However, if the property has been held for more than 5 years, the gain is entirely exempt from capital gains tax. This 5-year holding period exemption is a significant incentive for long-term property investors. The gain is calculated as the sale price minus the acquisition cost plus allowable improvements and notarial fees. The 15% rate applies to both developed and undeveloped land. Non-residents selling Algerian property are also subject to the same rules.

Primary Residence Exemption

The sale of a primary residence may be exempt from capital gains tax if the property has been held for more than 5 years (standard exemption) or if the sale proceeds are reinvested in another primary residence within 2 years. The reinvestment exemption applies to the gain up to the amount reinvested. This exemption is available once every 5 years per taxpayer. Documentation must be provided to the DGI to claim the exemption, including the sale deed and reinvestment proof.

Calculation of Gain

The capital gain is calculated as: Sale price − (Acquisition cost + Improvement costs + Transfer costs). The acquisition cost includes the original purchase price plus notarial fees and registration taxes. Improvement costs include capital additions and renovations. Transfer costs include agent commissions and legal fees. No indexation is available to adjust the cost base for inflation. For property acquired by inheritance, the cost base is the value at the date of the deceased's death (step-up in basis applies).

Filing and Payment

The capital gains tax return must be filed with the DGI within 30 days of the sale. Payment is due at the time of filing. The notary handling the property transfer is responsible for ensuring that CGT has been paid before registering the transfer. For share sales, the seller must file a declaration and pay the tax within 30 days. Late filing attracts a penalty of 10% of the tax due, increasing to 25% if beyond 30 days, plus interest at 0.5% per month.

FAQs

Is CGT payable on inherited property when the heir sells it?

When the heir sells inherited property, CGT is payable on the gain calculated from the deceased's original acquisition cost, unless the property was held for more than 5 years (in which case the gain is exempt).

Do non-residents pay CGT on Algerian property?

Yes, non-residents are subject to CGT at 15% on gains from the sale of Algerian property (or 20% on shares). The 5-year exemption also applies to non-residents.

Can capital losses be carried forward?

No, capital losses on shares or property cannot be carried forward in Algeria. They may only be offset against gains from similar transactions in the same tax year.

Is there CGT on cryptocurrency?

Cryptocurrency is not recognised as legal tender in Algeria and is not explicitly taxed. The DGI has not issued specific guidance on crypto taxation, effectively meaning no CGT applies to crypto gains.

Disclaimer

This guide provides general information about Algerian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Algerian tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.