| Discover Algeria | About us | Press area | Contact |
-
Legal INVEST
Les derniers textes juridiques
View more
Les interviews By AlgeriaInvest
Newsletter
Subscribe to the economic newsletter
- News
NEW NEWS
- Our Services
- News
January 4, 2025 | 1 year ago
Real estate, vehicle, and insurance transactions: No more cash in 2025
The Finance Act 2025, recently published in the Journal Officiel on December 26, 2024, marks a decisive turning point in managing economic transactions in our country.
A key feature of the new legislation is the formal ban on cash payments for certain transactions. These include real estate transactions, whether for built or unbuilt property, vehicle and other machinery purchases, insurance premium payments, and luxury goods such as yachts and pleasure boats.
From now on, through banking and financial circuits, all operations will be carried out exclusively by non-cash means of payment (cheques, transfers, etc.).
This bold measure enhances transparency and modernizes the country's financial circuits. It is part of a growing drive to combat the informal market, reduce the risks of money laundering and tax evasion, and encourage households and businesses to bank.
Once the law is published, many transactions will no longer be settled in cash. Among the main ones concerned are real estate transactions, vehicle purchases, the acquisition of pleasure boats and the payment of compulsory insurance premiums.
Under the Finance Act 2025, these payments must be made by non-cash means, through banking and financial circuits, thus guaranteeing the traceability and transparency of funds.
This initiative represents a major step towards integrating the national economy into the formal banking system. By obliging citizens and businesses to use banks for large-scale transactions, the government is seeking to eradicate many of the practices associated with the parallel market, such as money laundering, tax evasion and fraud. Transaction traceability is thus essential to guarantee the integrity of financial flows.
The measure is also designed to boost public confidence in the banking system. It is part of a wider drive to promote the bancarisation of Algerians, still a marginal phenomenon in the country. According to the latest statistics, the number of electronic payments in Algeria rose by 57% in the first half of 2024, reaching almost 60 billion dinars, confirming the trend for consumers to reduce their use of cash.
As of June 30, 2024, the total number of payment cards in circulation stood at 17,577,034, marking an increase of 14.57% on the previous year. The total value of electronic payment terminal (EPT) transactions rose by 44% to 20.129 billion dinars. In addition, 96.5 million electronic transactions were carried out in 2024.
From January 1, 2025, these transactions will have to go through banks, and citizens will have to open bank accounts in Algeria to make real estate purchases.
This rule should lead to greater traceability of funds, with the obligation to use official exchange mechanisms. For players in the real estate sector, this represents a significant change in practices. The ban on cash payments marks a decisive turning point in the digital transformation of the Algerian economy, supported by the national digitalization strategy.
January 5, 2025 | 
Popular Articles
