Algeria’s 2026 Finance Bill Targets $60 Billion Informal Economy With Tougher Tax Evasion Measures

The draft 2026 Finance Bill, approved on October 5 by the Council of Ministers, introduces stricter measures against tax evasion and money laundering—the main sources of Algeria’s informal economy, estimated at $50–60 billion.

The 2026 Finance Bill (PLF 2026) sets the state’s macroeconomic framework for 2026–2028, based on an oil barrel price of $60 and a market rate of $70. Despite a projected drop in hydrocarbon exports—down 2% in 2026, 0.5% in 2027, and 2.7% in 2028—the government forecasts sustained growth of 4.1%, 4.4%, and 4.5% over the same period.

Total revenues are expected to reach 8,009 billion DZD in 2026, 8,187.2 billion in 2027, and 8,412.7 billion in 2028. The overall state budget for 2026 stands at 16,861.511 billion DZD, including 5,753 billion DZD in subsidies—of which 420 billion are allocated to unemployment benefits.

To tighten control over tax compliance, the bill doubles late payment penalties from 1% to 2% and increases fines for tax violations, including those related to VAT. Furthermore, 30% of the collected fines will fund tax inspection improvements.

Foreign Currency and Capital Controls:

To curb money laundering and illicit capital transfers, a unified foreign currency declaration limit of €1,000 (or equivalent) applies to both residents and non-residents entering or leaving Algeria. The rule also covers coins, bearer payment instruments, negotiable securities, and precious metals or stones.

A fuel tax hike is planned for border crossings: light vehicles will pay 5,000 DZD instead of 3,500, while buses and heavy trucks will continue paying 12,000 DZD. For vehicles crossing multiple times daily, a 1,000 DZD fee will be charged per additional crossing.

Precious Metals and Customs Oversight:

Sending payment instruments or precious metals by mail or courier is now prohibited. Customs officers may seize such items if money laundering is suspected. New regulations also require gold, silver, and platinum dealers to obtain prior approval from tax authorities, which can be withdrawn if obligations are breached. Dealers are granted more time to sell locally manufactured or untraceable stock under certain conditions.

Real Estate and Luxury Tax Reforms:

The State’s preemption right on real estate has been streamlined, with shorter execution timelines and clarified exceptions. Goods confiscated under final court rulings will be exempt from customs duties and taxes.

The PLF 2026 also increases the tax on yachts and extends it to include jet skis and other watercraft, imposing a fixed rate of 400,000 DZD.

The 2026 Finance Bill marks a significant shift toward tightening fiscal control, curbing tax evasion, and reinforcing state oversight in key financial and trade sectors to strengthen Algeria’s formal economy.