Algeria has a stable banking system that is largely based on the French model. Although they may have some initial bureaucracy to contend with, expats should find it relatively easy to manage their finances in Algeria.
Money in Algeria
The official currency is the Algerian dinar (DZD).
Money is available in the following denominations:
-
Notes: 100 DZD, 200 DZD, 500 DZD, 1,000 and 2,000 DZD
-
Coins: 5 DZD, 10 DZD, 20 DZD, 50 DZD, 100 DZD and 200 DZD
Note that there are currency restrictions in Algeria on both arrival and departure. Travellers can't take Algerian dinars out of the country.
Banking in Algeria
Expats will find banking in Algeria quite easy. Banks offer comprehensive services, including online banking. Expats have a range of international banks to choose from, including BNP Paribas, Société Générale, HSBC and CitiBank. Major Algerian banks include Banque Nationale d'Algérie (BNA), Banque de l'Agriculture et du Développement Rural (BADR), and Banque Extérieure d'Algérie (BEA).
Credit and debit card use is growing, but Algeria is still largely a cash-based society. Currency exchange services are available at banks, hotels, airports and dedicated exchange bureaus throughout Algeria. Expats should be aware that exchange rates can vary between these providers, so it's advisable to shop around for the most favourable rate.
Opening a bank account
It's relatively straightforward for expats to open a bank account in Algeria. To open an account, they will need a valid identity card and proof of address – a residence certificate, utility bills or a lease contract. In some cases, an expat's employer may have a relationship with a specific bank which can help to expedite the process of opening an account.
Generally, the process can take anywhere from a few days to a couple of weeks, depending on how quickly the required documentation is provided and the bank's verification process. Expats should plan accordingly to ensure a seamless transition when moving to Algeria.
Income tax in Algeria
Algeria has a progressive income tax rate of up to 35 percent. This is payable by all tax-resident foreigners and locals on money earned in Algeria and worldwide. A tax resident is someone who lives in Algeria and whose main source of income is in the country.
Capital gains tax in Algeria is calculated at 20 percent for foreigners and 15 percent for residents. There may be tax liabilities in an expat's home country as well, so expats should consult a qualified tax consultant to assist them with all tax matters.