The 50% reduction for engines up to 1,800 cc: exact conditions
Short answer: the reduction is −50% of total duties and taxes for a petrol or hybrid vehicle up to 1,800 cc, −20% above 1,800 cc, and −80% for an electric vehicle. It applies only to a used vehicle under 3 years old, imported by an Algerian resident, one car every 3 years, and paid for with your own foreign currency. It is not the same as the 15% duty rate — that is a different mechanism.
Rules verified on 11 September 2026 · 2026 Finance Law (loi de finances 2026)
What exactly does the reduction apply to?
First, clear up the most common confusion. There are two separate mechanisms that both involve the number 1,800:
| Mechanism | What it does | Who it applies to |
|---|---|---|
| Duty bracket at 1,800 cc | Sets the rate: 15% duty and 0% TIC up to 1,800 cc | Everyone — professional and individual |
| Reduction at 1,800 cc | Cuts the total bill: −50% up to 1,800 cc, −20% above | Only the personal import regime, under conditions |
These two combine. A 1.5L vehicle imported personally by a resident gets the 15% duty bracket and the 50% reduction on top of the resulting total.
What are the exact conditions to qualify?
The reduction is not automatic. It applies within a defined regime, and every condition below must be met. The framework comes from article 110 of the 2020 Finance Law (law no. 19-14), as amended by article 208 of the 2025 Finance Law, with implementing rules in decree 23-74 of 20 February 2023 (Official Journal no. 11 of 22 February 2023).
- The vehicle must be used and under 3 years old. A new vehicle imported personally does not qualify.
- One vehicle per person every 3 years. The quota is tied to the individual, not to the household — it does not reset when you resell.
- You must be resident in Algeria. Non-residents are excluded (decree 23-74).
- You must pay with your own foreign currency. The funds must come from your personal foreign-currency resources, and the origin of funds is examined.
- Maximum 9 seats, maximum 3.5 tonnes.
- Diesel is excluded. The ban applies here as everywhere else.
- The vehicle must be cleared immediately on arrival. If the vehicle sails without a driver accompanying it, the one-month transit document is not issued and the vehicle must be declared directly at the port of entry.
What reduction rate applies to your vehicle?
| Engine | Reduction on total duties and taxes |
|---|---|
| Petrol or hybrid ≤ 1,800 cc | −50% |
| Petrol or hybrid > 1,800 cc | −20% |
| 100% electric (any power) | −80% |
The 1,800 cc figure is a fiscal threshold, not a legal ceiling. A resident may import a petrol or hybrid vehicle above 1,800 cc — the reduction simply drops to 20%, customs duty rises to 30% and the TIC applies. The only place where 1,800 cm³ is a genuine ceiling is the transfer-of-residence regime (C.C.R., article 127 of the 2026 Finance Law).
What does it look like on a real import?
Take a 1.5L Chinese SUV with a CIF value of 1,400,000 DZD, imported personally by a resident.
Worked example — 1.5L vehicle, personal import by a resident
- CIF value: 1,400,000 DZD
- Customs duty 15%: 210,000 DZD
- VAT 19% × (1,400,000 + 210,000): 305,900 DZD
- Solidarity levy 2% + customs service fee 2%: 56,000 DZD
- Subtotal duties and taxes: 571,900 DZD
- Reduction −50%: −285,950 DZD
- Duties and taxes actually payable: ≈ 285,950 DZD
- Landed cost: ≈ 1,685,950 DZD
Method illustration. The real amount depends on the model, the customs reference value and the exchange rate of the day.
What happens if you resell the vehicle?
This is the clause almost nobody mentions when they sell you an import. The reduction is granted in exchange for a commitment: the vehicle must be kept for a set period. If you resell early, the benefit is clawed back.
- The rate repaid depends on how long you held the vehicle before reselling — it declines over the retention period.
- The reduction is therefore a genuine advantage only if you intend to keep the car long-term.
- Buying through this regime with the plan to flip the car within a year is the single most common way to lose money on an import.
Ask for the exact retention period and the repayment scale in writing before you commit to the purchase. We include it in every personal-import quotation we issue.
Frequently asked questions
Who qualifies for the 50% customs reduction in Algeria?
A person resident in Algeria who personally imports a used vehicle under 3 years old, one vehicle every 3 years, paid for with their own foreign currency, with a maximum of 9 seats and 3.5 tonnes, and a petrol, hybrid or electric engine. Non-residents are excluded and diesel is banned.
Is the 50% reduction the same thing as the 15% duty rate?
No, they are two separate mechanisms. The 15% is a duty rate that applies to everyone up to 1,800 cc. The 50% reduction is a personal-import benefit that cuts the total duties and taxes in half for residents. A 1.5L vehicle imported personally gets both.
Can I import a vehicle over 1,800 cc and still get a reduction?
Yes. The 1,800 cc figure is a fiscal threshold, not a legal ceiling. Above 1,800 cc the reduction drops to 20%, customs duty rises to 30% and the consumption tax (TIC) applies, which is why it rarely makes financial sense — but it is legal for a resident individual.
Do I have to repay the reduction if I resell the car?
Yes, if you resell before the end of the retention period. The amount repayable depends on how long you held the vehicle. The reduction only makes full sense if you keep the car for the long term; buying under this regime intending to resell within a year is the most common way to lose money.
How much is the reduction for an electric vehicle?
80% of total duties and taxes, under the same personal import regime. Electric vehicles also have no displacement limit, so the 1,800 cc discussion does not apply to them at all.
References consulted
Continue the guide
- Importing a car from China to Algeria: the complete guideFrom order to registration plate: taxes, required documents, sea freight, customs clearance and real lead times. The entry point to all our guides.
- Customs duty and taxes on importing a vehicle15% up to 1,800 cc, 30% above, 19% VAT, TIC, 2% solidarity levy and 2% customs fee: the official 2026 rates and a detailed DZD calculation.
- The diesel import ban: what is coveredWhich diesel vehicles are genuinely targeted, since when, on what legal basis, and what remains allowed (petrol, hybrid, electric, LPG/CNG).
- Required documents: COC, ECTN/BSC, BL and bank domiciliationThe complete list of documents to assemble before shipment, who issues each one, how long it takes — and why a single missing piece blocks the whole clearance.
A question about your specific model?
We prepare a detailed, line-by-line quote: purchase price, FOB, sea freight, customs duty and VAT. Reply within 48 hours, in English or French.