Algeria has taken a new step in the fight against the use of cash for the payment of certain commercial transactions.
Article 207 of the 2025 Finance Law stipulates that real estate transactions of built and unbuilt buildings, sales operations carried out by dealers and distributors of vehicles and industrial machinery and equipment, purchases of yachts and pleasure boats and Mandatory insurance policies must be paid by cash means (check, transfer, bank card).
The same article specifies that this provision comes into force upon publication of this law” (LF 2025), indicating that the “modalities of application of this article are established by regulation”. This addition has led some to say that the entry into force of article 207 of the 2025 Finance Law is frozen until the publication of the implementing texts.
MP Ahmed Rabhi (Djelfa) even asked a written question to the Minister of Finance where he proposed setting a minimum threshold of $15 million from which cash payment is no longer authorized in real estate transactions.
Real estate transactions in Algeria: article 207 of the LF 2025 has entered into force
The FLN party deputy justified his request by the impact of this measure banning cash in real estate transactions in the wilayas of the interior of the country which are experiencing, according to a “precarious economic situation”.
Real estate developers fear the consequences of the obligation to pay for real estate transactions by cash means on their housing sales programs.
Insurers are also concerned about the difficulties linked to the implementation of this measure for the payment of compulsory insurance; namely Motor Civil Liability and Cat-Nat (natural disasters), due to the lack of banking coverage, difficulties in accessing the internet in certain regions and the relatively small sums linked to these transactions.
However, the government has made its decision and does not seem inclined to go back. The article did indeed come into force after the publication of the 2025 Finance Law.
In a note dated January 2, the General Directorate of the Treasury asked its services to comply with the provisions of article 207 of the 2025 Finance Law.
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