Algeria Rental Income Tax Guide 2026

Rental Income as IRG Income

Rental income from residential and commercial property is classified as foncier (property) income and is included in the owner's total taxable income for IRG purposes. The income is added to other sources of income (employment, business, etc.) and taxed at the progressive rates of 0% to 42%. There is no separate flat tax on rental income in Algeria. The net rental income (after deductions) is included in the annual tax return (déclaration d'impôt) filed by 30 April.

Standard Deduction — 40%

A standard deduction of 40% of gross rental income is applied automatically to cover all expenses related to the property, including maintenance, repairs, management fees, insurance, and depreciation. This means only 60% of gross rental income is included in taxable income. The standard deduction is available to all landlords without the need to document actual expenses. It is generally the simpler and more advantageous option for most landlords.

Actual Expense Deduction

Landlords may elect to deduct actual expenses instead of taking the standard 40% deduction. Deductible expenses include property management fees, maintenance and repair costs, insurance premiums, property taxes (taxe foncière), interest on property loans, and depreciation. Detailed records and receipts must be maintained. The actual expense method may be more beneficial for properties with high expenses or significant loan interest. Once elected, the actual expense method must be used for at least 3 years.

Non-Resident Landlords — 15% WHT

Non-resident landlords renting property in Algeria are subject to a 15% withholding tax on gross rental income. The tenant (or property manager) is responsible for withholding the tax and remitting it to the DGI. The 15% WHT is generally the final tax for non-residents, though the non-resident may file an annual return to claim deductions if the actual tax under progressive rates would be lower. Treaty relief may reduce the WHT rate.

Filing Requirements

Rental income must be declared in the annual tax return by 30 April. Landlords with significant rental income may be required to make quarterly prepayments (acomptes provisionnels) based on the previous year's tax. The tax on rental income is paid through the annual assessment after filing the return. Late filing or under-declaration of rental income attracts penalties of 10–25% of the tax due, plus interest at 0.5% per month.

FAQs

Is rental income subject to social security contributions?

No, rental income is not considered earned income and is not subject to CNAS social security contributions.

Can I deduct mortgage interest on a rental property?

Yes, mortgage interest on loans used to acquire or improve rental property is deductible if the actual expense method is used.

What if I rent to a company?

Rental paid by a company to an individual landlord is subject to the same IRG treatment. The company reports the rental payment to the DGI and may be required to withhold tax.

Is short-term rental (Airbnb) treated differently?

Short-term rental income is also taxed as rental income under IRG. However, if services beyond basic rental are provided (e.g., daily cleaning, breakfast), it may be reclassified as commercial income.

Disclaimer

This guide provides general information about Algerian rental income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Algerian tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.