Living in Algeria: Income tax rates, withholdings for non-residents, and capital gains

In Algeria, the global income tax (IRG) is levied at the tax domicile, according to a progressive scale from 0 to 35% of the taxable income, as set forth in Article 104 of the Code of Direct Taxes and Similar Levies, as amended by the 2022 Finance Law. Individuals without a tax domicile in Algeria are subject to withholding tax. The definition of tax domicile under Algerian law is not detailed here.

The IRG tax scale of article 104

Article 31 of Law No. 21-16 (Finance Law for 2022) replaces I of Article 104 and sets the following scale, by fractions of taxable income.

The 2025 and 2026 Finance Acts amend other parts of Article 104 and declare Part I "unchanged." The 2023 and 2024 Finance Acts are not included here; please check the current text with the Directorate General of Taxes.

A net taxable income of 2,000,000 DA: a numerical example (fictitious profile)

Situation. Karim, a fictitious profile, has his tax residence in Algeria. His net taxable income is 2,000,000 DA (assumed amount).

Issue. He wants to estimate the IRG using the scale in article 104.

Strategy. It applies each rate to the corresponding fraction of income.

Result. The portion from 240,001 to 480,000 yields 55,200 DA. The portion from 480,001 to 960,000 yields 129,600 DA. The portion from 960,001 to 1,920,000 yields 288,000 DA. The remaining 80,000 DA, taxed at 33% (%), yields 26,400 DA. The total is 499,200 DA, representing an average rate of 25% (%). This calculation does not take into account allowances, deductions, or specific rules, which are not detailed on this page.

Tax domicile and residence

The 2022 Finance Act uses the expression "tax domicile" without defining it in the passage of Article 104. This point is not detailed here: it falls under the code of direct taxes and similar taxes, to be checked with the Directorate General of Taxes.

Between France and Algeria, the convention establishes a set of criteria for individuals, according to the BOFiP commentary: permanent home, center of vital interests, habitual residence, nationality, and then amicable agreement with the competent authorities. Residence is assessed individually and not at the level of the tax household. Our page on the convention provides further details.

Without a tax residence in Algeria: Part III deductions

For individuals whose tax residence is not in Algeria, the 2022 legislation provides for a withholding tax of:

• 24 % on income from article 33 paid by debtors established in Algeria; ;
• 15 % on the proceeds of shares or equity interests (articles 45 to 48); ;
• 20 % on capital gains from the sale of shares, partnership interests or similar securities; ;
• 15 % on the fees and copyright of artists domiciled outside of Algeria.

The 2026 Finance Law declares Part III "unchanged". The ceilings that the Franco-Algerian convention applies to these withholdings are presented on the convention's page.

Recent dividends and capital gains

The 2026 Finance Law (Official Journal No. 88 of December 31, 2025) sets the withholding tax on dividends referred to in II.4.a of Article 104 at 10.%, which is a final tax payment. The 2025 Finance Law (Official Journal No. 84, Article 8) provides for:

• for the transfer of shares, a tax of 15 % which is a final tax on income tax; ;
• a reduced rate of 5 % if the taxpayer undertakes to reinvest, no later than December 31 of the year following the transfer; ;
• an increase of 25 % in the tax assessment if the commitment is not met; ;
• a tax reduction of 50 % for certain transfers of housing, under the conditions set out in this article.

The same law (article 7) sets June 30 of each year as the deadline for filing the declaration of total income with the tax office of the place of residence.

Social Security

According to the CLEISS fact sheet, 2024 edition, three funds manage the employee social security system: the National Social Security Fund (CNAS), the National Pension Fund (CNR), and the National Unemployment Insurance Fund (CNAC). The fact sheet does not provide contribution rates and does not mention any bilateral agreements with France.

What this page does not cover

It does not detail the definition of domestic tax residence, nor wealth tax, domestic inheritance law, local savings, or visas and residence permits. These matters fall under Algerian law and should be verified with the General Directorate of Taxes. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters should be assessed by a professional based in Algeria. French matters, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residence and exit tax.

What changes depending on your situation

• Your tax residence, with regard to Algerian law and the convention.
• The nature of your income: salaries, dividends, capital gains on shares, sale of housing.
• Your potential commitment to reinvest in the event of a sale of shares.
• The year of your income: the finance laws modify article 104 from one year to the next.

The rule depends on your situation. No results are guaranteed.