Investment support

investment Investment support
  • Access to tourist land:

The land on which the project is based may be either private property of the investor or belonging to the private domain of the State, to which it is granted according to the mutual agreement formula which comes under the authority of the Wali . (the complementary Finance law (LFC) 2011), upon deliberation by CALPIREF. (investment localization and land regulation assistance committee). However, this requires the opinion of the National Investment Council, NIC, when the investment project is equivalent to 500 millions dinars and more and in the case of a partnership project.

If the land belonging to the private domain of the State is located inside the Tourist Expansion Zones, it will be conceded according to the mutual agreement formula by the wali after favorable opinion. of the National Tourism Development Agency (NTDA).

– Incentive measures for Tourism Investment linked to access to land:

 The Complementary Finance Law 2011 lightened the terms of access to the concession by mutual agreement mode. The concession terms are as follows:

  • The annual rental fee is fixed by the services of the domains, territorially competent, and corresponding to 1/33rd of the market value of the land granted.
  • A reduction on the amount of the rental fee is set as follows:

1- Projects realized in the NORTH:

  • 90% during the period of realization of the investment which can be spread out from one (01) year to three (03) years.
  • 50% during the operating period of three (3) years for projects creating up to one hundred (100) jobs.

2-Projects realized in the SOUTH, the HIGHLANDS:

  • At the symbolic Dinar per square meter (m2) for a period of ten (10) years and 50% of the amount of the state fee beyond this period.
  • At the symbolic Dinar per square meter (m2) for a period of fifteen (15) years and 50% of the amount of the state fee beyond this period, for investment projects located in the wilayas of the Great South.

NOTE: the local authorities of the Wilaya of Sétif to which the special advantages of the highlands apply are 14 in number located to the south and south east of the wilaya.

  • Access to financing:

A framework agreement has been established between the Ministry of Tourism and Handicrafts and the banks as well as guarantee organizations in order to facilitate access to credit and ensure its guarantee for investment programs and upgrading operations and rehabilitation of hotel structures.

According to the complementary finance law 2016 (CFL2016) a bonus of 3% and bank interest rates is applicable to hotel investment projects located in the northern wilayas for 5 years and 4.5% in the wilayas of the highlands and the south according to the complementary finance law 2009 (CFL2009).

1- Consistency of a financing file:

  • Deed of ownership of the land base of the project.

·  Extract from the commercial register.• Agreement in principle of the Ministry in charge of Tourism.• Building permit.• Bank guarantee• Personal financial contribution of 20% to 40%.• Technical-economic study.• Target architecture file.• Encrypted credit request.• NIDA (national investment development agency) decision with the list of equipment eligible for   NIDA funding.

2-Banks and financial institutions contracted with MTA(Ministry of Tourism and Handicrafts)

 

– The Popular Credit of Algeria (CPA)- The Local Development Bank (BDL)- The National Savings and Provident Fund (CNEP)- The Bank for Agriculture and Rural Development (BADR)- Societe Generale Algeria- Trust Bank.     – Gulf Bank Algeria (AGB)    – El Baraka Bank Algeria    – Salama Bank    -The Credit Guarantee Fund for SME, FGAR    – SPA El Djazair Istithmar

 

 

The involvement of banks can range from 60% to 80% for projects of particular wingspain and complexity.In accordance with article 100 of the Complementary Finance Law of 2009, the public authorities have created 48 investment funds in all the wilayas of the country.Currently six (06) companies have been created and of which three (03) are already operational:-EL DJAZAIR ISTITHMAR: Capital held 70% by BADR and 30% by CNEP Banque.-SOFINANCE: Company created by the five (05) public banks.-FINALEP: Joint Algerian-European company

 III-Tax and parafiscal benefits granted by NIDA  (National Investment Development Agency)Any investment project can benefit from the advantages provided for by Ordinance 01-03 relating to the development of investment.To do so, the investor must complete an investment declaration, available from NIDA decentralized one-stop shops (GUD). and downloadable from the NIDA website: www.andi.dz. 

 

A/ Projects realized in the NORTH  1- Realization phase:a- Exemption from customs duties for imported entering directly into the realization of the investment;b- VAT exemption for goods and services imported or acquired locally entering directly into the realization of the investment;c- Exemption from the transfer duty for valuable consideration and the land registration tax, for all real estate acquisitions made within the framework of the investment concerned;d- Exemption from registration fees, land advertising tax, as well as state remuneration relating to the concessions of built and unbuilt real estate intended for the realization of investment projects. These advantages apply for the minimum duration of the granted concession;e- exemption from property tax on real estate within the framework of the investment, for a period of ten (10) years, from the date of acquisition;f- Exemption from registration fees on company deeds and capital increases.2- Operation phase: For a period of three (3) years for projects creating up to one hundred (100) jobs at the start of the activity and after acknowledgment of entry into activity established by the tax services at the diligence of the investor:a– exemption from corporate income tax (CIT);b- Exemption from tax on professional activity (TPA); 

 

 B/ Projects realized in the SOUTH, in the highlands

1-Realization phase:a-exemption from customs duties for imported and entering directly into the realization of the investment;b- VAT exemption for goods and services imported or acquired locally entering directly into the realization of the investment;c- Exemption from the transfer duty for valuable consideration and the land registration tax, for all real estate acquisitions made within the framework of the investment concerned;d- Exemption from registration fees, land advertising tax, as well as state remuneration relating to the concessions of built and unbuilt real estate intended for the realization of investment projects. These advantages apply for the minimum duration of the granted concession;e- exemption from property tax on real estate within the framework of the investment, for a period of ten (10) years, from the date of acquisition;f- Exemption from registration fees on company deeds and capital increases.g- the partial or total payment by the State, after evaluation by the agency of the expenses for the infrastructure works necessary for the realization of the investment;2- Operation phase for a period of ten (10) yearsa-Exemption from corporate income tax (CIT);b- Exemption from tax on professional activity (TPA);