Algiers' local economy relies heavily on the service sector, and as the capital city it is home to the headquarters or offices of many Algerian national financial institutions, including the country's stock exchange, as well many governmental departments and embassies. As a result, many of the expatriates working in Algiers are employed in governmental or ambassadorial roles, usually working for their home country but based in the city.
In addition, tourism is a key part of the service sector in Algiers, and at present the government is undertaking a major plan to encourage even more tourism, including building new retail parks, hotels, and conference centers in the city, as well as starting construction work in the bay of Algiers. Furthermore, many global corporations have their French-speaking or African headquarters located in Algiers, including Hewlett Packard, and these are also some of the main employers of the city's large expat population.
Foreigners wanting to work in Algiers will need a work permit in order to do so. Although the visa system in Algeria only requires expatriates wanting to work in Algiers to apply for one document that covers both the right to employment and residency called a work visa (see above), you must first apply for temporary work authorization in order for this to be granted. This means that before applying for your visa to work in Algiers, you must have already secured employment in the city, and your application must be submitted along with your prospective employment contract to the employment inspectorate services of your local wilaya. After this has been approved, you can then apply for your work visa through your local embassy or consulate in your home country. Visas for working in Algiers are temporary, and will need to be renewed upon expiry.
All residents working in Algiers will be required by law to pay income tax on their earnings, including foreigners and expatriates. However, as a foreigner living and working in Algiers, you are only required to pay income tax at Algerian rates on your worldwide income if you are considered a resident of the country for tax purposes, which means that you live and work in Algiers for more than 183 days in the fiscal year. Should you live and work in Algiers for less than 183 days in the fiscal year, you would not qualify as a resident for tax purposes and as a result would only pay income tax at Algerian rates on your income earned whilst working in Algiers.
Like many countries, Algeria has a progressive income taxation system, which means that the amount of income tax you are required to pay is determined by your total earnings for the fiscal year. The income tax rates for expatriates living and working in Algiers for 2015 are as follows: