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. Algerian dinars can't be taken out of the country.
Banking in Algeria
Expats will find banking in Algeria to be quite easy. Banks offer comprehensive services, including online banking. Expats have a range of both local and international banks to choose from, including BNP Paribas, Societe Generale, HSBC and CitiBank.
Credit and debit card use is growing, but Algeria is still largely a cash-based society.
Opening a bank account
It’s relatively straightforward for expats to open a bank account in Algeria. They will need to have a valid identity card and proof of address, in the form of a residence certificate, utility bills or a lease contract, to open an account. 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.
Income tax in Algeria
Algeria has a progressive income tax rate 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 there. 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.