New Financial Facilities Cut Property Transfer Fees in 2027
The Algerian government is set to introduce substantial financial and real estate facilities starting in 2027, aimed at significantly reducing the cost of housing acquisition through Islamic finance formulas. This initiative will provide exemptions from transfer duties and land registration fees for Murabaha contracts, among others. The measures are designed to enhance the appeal of Islamic financial products and support citizens' purchasing power, thereby facilitating access to property ownership.
These new provisions are outlined in articles 34 and 35 of the proposed 2027 Finance Bill, which seek to amend articles 258 and 353 of the Registration Code. Article 34 specifically exempts finished apartment sales and property transfers under Mourabaha, Ijara Mountahia Bi tamlik, and ISTISNA’A from transfer duties. For constructions undertaken by heirs or family enlargements via Mourabaha, the registration duty will be calculated based on the value acquired by the financial institution, rather than the total contract value. Similarly, for Ijara Mountahia Bi tamlik, the duty will apply to the bank's initial acquisition value, not cumulative rents.
Further enhancing accessibility, initial formalities for these contracts will be subject to a fixed fee of 4,000 Algerian Dinars, provided the lease duration is at least twelve years. Additionally, the exemption from land registration fees will extend to financing contracts for investments by economic enterprises across commercial, industrial, agricultural, services, residential, and professional sectors. This comprehensive reform also includes an updated fee schedule for initial and subsequent land registry formalities, reflecting a broader modernization of Algeria's real estate sector and adherence to Law no. 09-23 of June 21, 2023, concerning credit.
