A New Tax On Sale and Renting Of Individual Apartments As From January

The Government has decided to put the national real estate market under perusal starting from next January 2017, whereby rent housing operations concerning private properties will be subjected to tax imposition up to 10 percent of the total value of the renting price, while all sales of built property will also be subjected to a 5 percent tax of the value of the transaction process with the implementation of some financial cuts in certain cases.

This move is part of the new measures proposed by the Ministry of Finance to the Government in the draft finance law for the coming year, thus reflecting the latter’s insistence on expanding the tax base collection, with the aim of redressing the gross imbalance now affecting the state external revenues caused by the dwindling oil prices on the world market.

According to the “L’écho d’Algérie” website, these new measures endorsed by the Government and due to come into force in early January next year as part of the provisions contained in the next draft finance law, are designed primarily to foster the principle of equal treatment between the properties private real estate market, with the latter, counting 7.5 million units, and listed as state property.

It should be noted that this sector of activity has always remained outside the framework of submission to tax imposition unlike collective accommodation or those flats located in buildings.

The private real-estate sector in Algeria is witnessing an increasing demand by foreign companies and institutions, and is also a source of considerable revenues and income spawned by this polarized activity.