Amine, an Algerian engineer based in Paris, balances his demanding job at a technology company with his personal life. Despite the distance separating him from his homeland, Amine remains deeply connected to his family in Algeria. His parents, living in the small town of Béjaïa, as well as his siblings scattered between Algiers and Oran, rely on his financial support to cover their essential needs.
For Amine, sending money to Algeria is not just a simple transaction. It represents a vital link that binds him to his loved ones, providing crucial financial support that crosses seas. Every earned euro is carefully allocated to improve the daily lives of his family, whether it be for medical expenses, grocery purchases, or helping with the educational fees of his nieces and nephews.
Amine is not alone; he is part of the many Algerian expatriates who, each year, send millions of dollars back home to economically support their families. These remittances play a crucial role in the Algerian economy, providing direct financial support to those who remain in the country.
This article is designed to provide a comprehensive guide, offering not only an overview of the legal and fiscal aspects of these exchanges but also advice on selecting the most suitable money transfer method for the specific needs of each expatriate, whether for education or healthcare. We will explore the fastest, least expensive, and safest options for sending or receiving money in Algeria.
What are the different ways to send and receive money in Algeria?
Algeria has made significant progress in financial inclusion over recent years, largely aided by the growing adoption of digital financial solutions.
This transition was catalyzed by the COVID-19 pandemic, which increased demand for digital services in response to mobility restrictions and public health policies.
Until 2020, mobile apps and mobile payments were not yet established in the country.
Mobile banking, driven by strong mobile penetration in several developing countries, represents a first step towards the digitization of financial services.
However, despite better mobile connectivity in Algeria compared to the MENA (Middle East and North Africa) regional average, the adoption of digital payments remains low. Only 16% of Algerian adults, and even fewer women (11%), use these services. Source
1 – Traditional Banks
Traditional banking services are reliable and secure options for sending and receiving money in Algeria.
Advantages:
- Security and Trust: Banks are regulated by financial oversight bodies, offering a high level of security and protection for your funds.
- Additional Services: Besides money transfers, banks offer a range of financial services, such as investment advice, loans, and credit facilities.
- Direct International Transfers: You can send money directly from your bank account to an account in Algeria, simplifying the process without the need for intermediaries.
Disadvantages:
- High Costs: Transfer fees and exchange rates can be particularly high. Additional costs can accumulate, especially for frequent or large transfers.
- Slower Process: The processing of international transfers can take several business days, which is not ideal for emergency situations like healthcare needs.
- Complexity and Documentary Requirements: Sending funds abroad through banks may require comprehensive documentation and administrative formalities, making the process sometimes cumbersome.
- Necessity of a Bank Account: This requirement can be a major barrier, especially in Algeria where 57% of adults, including 71% of women, do not have access to basic bank accounts necessary for sending and receiving payments securely and efficiently. The main reasons are lack of funds, the cost of opening an account, but also the absence of necessary documents (such as proof of residence, proof of income, and an ID or its equivalent). This financial barrier limits access to money transfers for those who may need it most.
2 – Online Services and Apps
Online services such as Wise (formerly TransferWise), WorldRemit, PayPal, MoneyGram, and Cash App have revolutionized the way we send and receive money across the world.
They offer a convenient and often more economical alternative to traditional money transfer methods, suited for our digital age.
Further in this article, you will find our ranking of the fastest and least expensive ways to send or receive money in Algeria.
Advantages:
- Speed and Ease of Use: These platforms enable fast, often instant, money transfers with a simple online operation or via a mobile app. Their intuitive user interface makes the process accessible to everyone.
- Cost-Effective: The fees charged by these services are generally lower than those of traditional banks, especially for international transactions. They also offer competitive exchange rates, which can result in significant savings.
Disadvantages:
- Necessity of an Account on the Same Platform: To receive money via these services, the recipient often needs to have an account. This can be a hurdle for people who are not accustomed to using such services or who do not have access to technological means in Algeria. As mentioned earlier, this is the case for a large portion of the population.
- Lack of Customization for Specific Needs: These services are not specifically designed for needs such as healthcare access. They do not provide assurance that each cent transferred will be used for medical purposes or to improve the well-being of loved ones.
- Lack of Transparency and Tracking: While these platforms offer some transparency on fees and the transfer process, they do not provide a detailed mechanism to track how the funds are specifically used once received. This is crucial for donors who want to ensure that their financial support is directly allocated to specific needs, such as healthcare for their loved ones.
- Geographical Limitations: Often, these applications are designed to operate primarily in one country or a specific region, which poses a problem for immigrants wishing to financially support their loved ones in Algeria.
- Data Security: Although these apps take measures to protect users’ financial information, concerns about the security of personal data remain.
3 – The Solution of Buying Health Credits Online
If you want to support your loved ones in Algeria, especially in the healthcare sector, health credits offer a solution that combines speed, security, and positive impact.
KimboCare was inspired by the experiences of two African immigrants who faced challenges in supporting the health of their relatives back in Africa while navigating their own lives in the United States and Europe, a story similar to that of Amine, mentioned at the beginning of this article.
This story is not unique, but our response to this challenge is entirely unique.
KimboCare was created to transform the way we care for our families from afar, whether in Algeria or other developing countries.
Now, you can purchase digital health credits so your loved ones can access preventive and curative healthcare services without needing a bank account or a digital currency platform.
This process is simple, straightforward, and can be done from anywhere, at any time. These credits will be immediately usable by patients who will be received in medical facilities that are always verified and monitored by KimboCare.
Rather than just sending money, often without a guarantee that it will be used for necessary healthcare or without being able to ensure the quality of care received, health credits offer a transparent and secure solution.
You also get real-time tracking of the medical services purchased with the health credits, ensuring that every cent contributes truly to the health and well-being of the recipient.
The commitment lies in empowering vulnerable populations, particularly women and children, to access quality healthcare, thereby contributing to a longer and healthier life.
The utility of health credits lies in protecting your data with advanced encryption protocols, offering you additional peace of mind while contributing to the health of your loved ones.
The adoption of digital currency has provided significant benefits in terms of security, reducing the risk for families of exposing their loved ones to dangers by carrying large sums of money from banks.
The Fastest Ways to Send or Receive Money in Algeria
To send or receive money in Algeria quickly, several options are available to you, each with its own specifics, advantages, and limitations.
It is crucial to choose the method that best fits your needs, while considering speed, costs, and particular requirements.
Service | Transfer Fees | Exchange Rate | Delivery Time | Payment Options |
---|---|---|---|---|
Western Union | High | Average | Instant to 1 day | Bank transfer, credit card, cash |
Remitly | Medium | Competitive | Few hours to 1 day | Bank transfer, credit card |
Paysend | Low | Competitive | Instant | Bank transfer, credit card |
Revolut | Very Low | Very Competitive | Instant | Bank transfer, credit card |
KimboCare | Low | Transparent | Instant | Credit card, digital wallet |
Health Credits
By purchasing health credits, you can ensure that your financial support is directly used for quality health services.
For urgent health needs, opt for services offering instant or same-day transfers. Platforms like KimboCare directly inform the patient via SMS or a call.
Not only does this allow for an efficient and fast transfer of funds, but it also ensures that your money contributes to a vital cause: the health of your loved ones.
Purchasing health credits frees you from the uncertainties and delays often associated with traditional money transfers.
When you buy health credits for a loved one in Algeria, the recipient can access necessary care without waiting, thanks to a network of reliable and verified medical partners.
Additionally, you benefit from total transparency and real-time traceability of the medical services provided, which is not always the case with other money transfer methods.
Online Services and Mobile Apps
Online services and mobile apps are often the fastest for money transfers.
Platforms like PayPal, Western Union, World Remit, and TransferWise (now Wise) enable almost instantaneous transfers.
However, it is important to note that these speeds can vary depending on the amount sent and the necessary security checks.
Some platforms limit the amount you can send over a given period without additional verification, while others may require detailed information about the recipient for compliance reasons.
Moreover, mobile wallets indeed allow instant transfers, but the lack of digital payments in Algeria means that your recipient may not be able to access the money immediately or use it promptly.
This is partly because the digital payment system in Algeria is not sufficiently developed.
Even if your loved ones have a digital account, they will still need to withdraw cash to pay for most goods or services.
Some companies charge high fees for withdrawing money from their system. For example, PayPal charges about 5%, which is comparable to the price of a bank transfer.
International Banks
International bank transfers can also be fast, especially if both parties use the same bank or banks with cooperation agreements.
Nevertheless, interbank transfers may be subject to delays due to stricter verification processes and the need to go through clearing systems.
The amount limits and specific requirements vary significantly from one bank to another.
This is particularly important in Algeria, where most households are limited in their withdrawals because some banks impose daily limits.
Furthermore, it should be noted that the Algerian banking system is not easily accessible, with only 9.3 ATMs per 100,000 inhabitants.
In a country where cash payment is preferred, this makes the transfer funds less readily accessible for your loved ones.
The Least Expensive Ways to Send or Receive Money in Algeria
Sending or receiving money from a loved one involves adopting a strategic approach to minimize costs while ensuring the security and efficiency of transactions.
Online services and mobile apps often offer more favorable rates than traditional banks, thanks to their reduced cost structures.
Western Union and MoneyGram are optimized for international transfers, offering reasonable fees and competitive exchange rates.
The biggest issue is getting a good exchange rate.
Even if you send the same amount of money each time, the actual amount your family receives can vary.
Before choosing a service, compare transaction fees, applied exchange rates, and look for reviews to ensure reliability and security.
Opting for platforms that offer a transparent exchange rate and as close as possible to the market rate without hidden fees can greatly reduce the costs of money transfers to Algeria.
Is it possible to transfer with zero fees?
Platforms like Worldremit, TransferWise (now Wise), and Remitly are known for their competitive costs and transparency.
While the offer of money transfers without fees may seem attractive, it can often be misleading.
Money transfer companies need to generate revenue to operate, and if they do not impose explicit transfer fees, they may recover these costs in other ways.
This can include applying less favorable exchange rates, meaning your money loses value along the way, or introducing ancillary fees once you engage in the transfer process.
According to the World Bank’s remittance cost database for the fourth quarter of 2023, the total cost to send $200 to Algeria from France varied from 6.99% to 27%, depending on the service provider and the transfer method used. Source
It is therefore important to be vigilant about hidden fees, which can appear as additional service charges or indirect costs.
Reading the service terms carefully can save you from unpleasant surprises.
When the goal of your money transfer is specifically related to supporting the healthcare needs of your loved ones in Algeria, purchasing health credits presents itself as an innovative solution offering affordable costs.
This guarantees your loved ones receive the necessary healthcare, avoiding unnecessary fees or fluctuations in exchange rates.
You know precisely what care was provided, when, and at what cost, ensuring that your contribution has the desired impact.
Furthermore, no money transfer is necessary, so you minimize the risks of hidden fees.
Transferring funds to Algeria based on various needs
Sending money to Algeria goes well beyond a simple transaction; it is a manifestation of support, love, and investment in the future of your loved ones.
Whether it’s about promoting access to education or ensuring the health of the family, each Algerian Dinar sent carries the potential for change and empowerment, enabling your loved ones to pursue their dreams and build a better future for themselves and their communities.
Education and Employment
Investing in education is essential for many Algerian families. Money transfers aimed at covering tuition fees, books, and school supplies can be made through banks or online transfer services.
These services often offer options to deposit funds directly into educational institutions or into dedicated bank accounts, thus reducing intermediaries and ensuring that the money reaches its intended purpose.
In Algeria, the job market can be challenging, especially for young graduates facing high unemployment rates and limited opportunities.
Take, for example, Karim, a young Algerian university graduate who struggles to find stable employment in a competitive field like engineering. Without a steady job, he relies financially on his older brother, Sofiane, a software developer in Paris.
Sofiane, aware of the challenges faced by Karim and their family in Algeria, ensures he regularly sends money to support the household’s needs.
Every month, he transfers about 300 euros, a significant sum in Algeria where it exceeds the average local salary in several regions (the average salary in Algeria is $325).
This money not only helps Karim cover his daily expenses but also provides him the opportunity to attend additional training and continue actively searching for employment, without the immediate financial pressure.
These transfers are vital for maintaining hope and ambition among young Algerians like Karim, giving them the means to build a better future.
Health
Caring for the health of distant family members is often a major concern, especially when it comes to ensuring that the financial aid sent is used wisely. This concern is particularly significant in Algeria where access to reliable and quality medical care can often be a real challenge.
In Algeria, finding a competent health professional can be complicated, especially in less urbanized regions. Searching for a qualified doctor, navigating through a complex and sometimes inefficient health system, and the risk of hidden or additional fees are recurring obstacles that can make access to healthcare not only difficult but also stressful.
Take, for example, Nadia, a mother living in Algiers. Although this city has relatively developed medical infrastructure, access to quality care remains uneven. Variations in health professionals’ skills and irregular medical standards further exacerbate these difficulties.
When Nadia developed a complex medical condition, she found herself facing difficulties in obtaining clear information about her condition. The doctors seemed reluctant to discuss treatment options openly, increasing her sense of vulnerability.
Her brother, Karim, who emigrated to France, felt powerless about the situation. However, discovering a platform like KimboCare changed the game.
This platform allows expatriates to directly fund quality medical care for their loved ones in Algeria, providing transparency and reassuring tracking.
Thanks to KimboCare, Nadia was able to undergo a series of thorough medical examinations that accurately diagnosed her condition. A treatment plan was developed and implemented with regular follow-ups, allowing Nadia to feel heard and cared for, a situation she would have struggled to ensure with her own financial means.
With KimboCare, not only can expatriates like Karim pay directly for medical care, but they also have the assurance that their funds are used appropriately.
This eliminates much of the stress and uncertainty associated with managing healthcare from a distance while ensuring a constant and verifiable quality of care.
This service thus not only transforms the way medical care is administered but also provides invaluable peace of mind to families like Nadia and Karim’s, ensuring that the financial aid sent translates directly into quality medical care.
Nutrition
Ensuring that our families in Algeria have access to adequate and nutritious food is a priority for many expatriates, particularly in regions where access to quality products may be limited by economic constraints.
Sending money to cover food needs supports not only the physical health of families but also enriches their daily well-being.
Algerian cuisine, rich and diverse, reflects the culture and traditions of the country. Basic ingredients such as olive oil, fresh vegetables, meats, spices, and herbs are essential for creating dishes that nourish both the body and spirit.
Consider Couscous, the emblematic dish of Algeria. This central dish combines semolina, vegetables, meat or fish, and a variety of spices, reflecting the richness of Algerian cultural influences. It symbolizes family gatherings and major celebrations, playing a crucial role in family bonds and traditions.
Tagines, another essential component of Algerian cuisine, with their robust flavors and slow cooking methods, evoke childhood flavors for those far from home.
These dishes, often simmered with particular attention, are a source of comfort for Algerians living abroad, reminding them of the tastes of home.
For Algerian expatriates, sending money for these food needs goes beyond mere financial aid; it is a way to ensure that their families can access these traditional ingredients and maintain culinary practices that are at the heart of their culture.
Each transaction is thus an expression of support that perpetuates culinary traditions, supports local communities by purchasing local products, and maintains a vital cultural link with Algerian heritage.
These acts of sending funds strengthen not only immediate needs but also social and cultural ties, essential for the cohesion and well-being of families.
Safety Tips for Making Money Transfers to Algeria
In an ideal world, sending and receiving money across borders would be as simple and safe as making a phone call.
However, the reality of international money transfers can sometimes be complex, with risks of fraud and scams targeting the most vulnerable individuals.
- Verify and Validate Your Fund Destination
Make sure the money you send reaches the person you intend to help. This might seem obvious, but in urgent situations, mistakes can occur. Double-check the recipient’s contact details and information before proceeding with any transfer.
We recommend using well-established and reputable money transfer services that offer complete transparency about the journey of your funds throughout the process.
- Beware of Overly Attractive Offers
Scammers often use the promise of extremely favorable exchange rates or zero transaction fees to lure their victims. If an offer seems too good to be true, it probably is.
Similarly, a common scam tactic is to create a sense of urgency, like a fake health problem of a loved one, to push you to send money quickly without verification.
- Never Share Your Personal Information
Be vigilant with your personal and financial data. Fraudsters may try to obtain it via phone, email, or social networks. A legitimate company will never ask you to provide sensitive information through these channels.
It’s best to opt for a program solution where data is protected through advanced encryption protocols and you have access control.
- Ensure You Track Your Funds
Having a record of each money transfer can prove invaluable in case of problems. This information allows you to trace and dispute any suspicious transactions.
After sending money, check with your recipient to confirm receipt of the funds. This simple step can help you quickly detect potential fraud.
The best assistance you can receive for sending or receiving money in Algeria is from an agency that ensures every penny is invested in specific needs (such as healthcare expenses), with zero risk of diversion by unreliable intermediaries.
An Overview of Money Transfer Laws in Algeria
Algeria, with its rich monetary history and increasing significance in remittances, is at the heart of global economic dynamics.
Money transfers from Algerian expatriates play a crucial role in the national economy, thus strengthening ties between emigrant communities and their home country.
Today, Algeria is among the top 10 African countries receiving the most remittances, with nearly $1.8 billion recorded in 2023. Source
These remittances mainly come from the diaspora community in France, Italy, Germany, and also Libya.
The Bank of Algeria regulates international money transfers by ensuring that financial transactions are secure, affordable, and accessible. This regulation promotes financial stability and aids in expanding financial inclusion while supporting economic development and facilitating the digital economy.
The Minister of Finance, Laaziz Faid, works in collaboration with international bodies such as the World Bank to improve the country’s payment and financial infrastructure systems.
At his latest conference, he highlighted efforts to foster the economic and financial system by implementing the Electronic Commerce Code and creating a Governmental Authority for electronic certification.
This includes developing payment system strategies, establishing international standards for financial market infrastructure, and implementing real-time settlement systems. Source
Taxation Applicable for Sending or Receiving Money in Algeria
Family remittances sent to Algeria by members of the diaspora are generally not subject to direct taxes.
This means that when an expatriate sends money to their family in Algeria, neither the sender nor the recipient has to pay a specific tax on the transferred amount.
This practice encourages the sending of financial support to families without imposing an additional tax burden, which is crucial for many families who rely on these funds for their daily livelihood.
However, it is important to remember that, even in the absence of taxes on the transferred amounts, expatriates may face operational fees depending on the chosen method.
Services like Wise and traditional bank transfers can incur service fees, which vary depending on the platform and the amount sent. Expatriates should therefore carefully review transfer options to choose the most cost-effective and efficient method.
When substantial amounts are sent, such as for regular family support or for payment of educational or health fees, expatriates should also be prepared to provide proof of the origin of the funds, especially for significant transactions.
This precaution is necessary to comply with international anti-money laundering and terrorism financing regulations.
At KimboCare, we emphasize the importance of being well-informed about these aspects, as it not only helps ensure hassle-free money transfers but also supports our mission to ensure fair and affordable access to services, such as healthcare, for those in need in Algeria.
FAQ
How can I send health credits to loved ones in Algeria?
You can start managing access to reliable healthcare for your loved ones back home in a few easy steps:
- Visit app.kimbocare.com or download the free KimboCare app from the App Store or Play Store.
- Select the country, medical facility, and health package(s).
- Add a beneficiary.
- Review your order and make your payment.
That’s it!
Your loved one can now visit the medical facility you selected and benefit from the healthcare services while you track the use and effectiveness of your gift from your tablet or smartphone.
How can I send money to Algeria in the safest way possible?
To ensure the safety of your money transfer to Algeria, choose reputable services with robust security protocols. Always check user reviews and make sure the service is regulated by competent financial authorities.
If you want to send money to cover health expenses, opt for recognized services with robust security protocols. Our platform ensures that each financial partner adheres to high security standards, guaranteeing that your funds reach your loved ones safely.
Are money transfers to Algeria taxed?
Family remittances sent to Algeria by members of the diaspora are generally not subject to direct taxes.
This means that when an expatriate sends money to their family in Algeria, neither the sender nor the recipient has to pay a specific tax on the transferred amount.
However, it is important to remember that, even in the absence of taxes on the transferred amounts, expatriates may face operational fees depending on the chosen method.
How long does a money transfer to Algeria take?
The transfer time can vary depending on the service used. Electronic transfers can be instantaneous or take a few hours, while traditional methods like bank transfers can take several business days.
For urgent healthcare needs, prioritize services offering instant or same-day transfers. Some platforms like KimboCare directly inform the patient via SMS or a call.
What are the typical fees associated with sending money to Algeria?
Fees vary widely depending on the service chosen, the amount sent, and the method of payment. Some services charge a percentage of the transferred amount, while others apply fixed fees. Look for options offering total transparency on fees to avoid surprises.
Are there any amount limits for sending money to Algeria?
Yes, most money transfer services impose limits, which can vary depending on the transfer method chosen and the service regulations. It is also worth noting that your recipients may have bank withdrawal limits on-site.
It is essential to check these limits before making a transfer, especially if you plan to send large sums for needs like covering medical expenses.
How can I ensure I get the best exchange rate when sending money to Algeria?
Compare exchange rates offered by different services before making your transfer. Some services allow you to lock in a favorable exchange rate in advance or offer more competitive rates for higher amounts. Be mindful of hidden fees that might affect the final amount received!
How can my loved ones in Algeria receive money?
Recipients in Algeria can receive money through direct deposits into their bank accounts, cash withdrawals at local service points, or even, for some services, home delivery. Make sure to choose a reception method that best suits your beneficiary in terms of convenience and safety.
As for health credits, each credit purchased can then be gifted to your loved ones for access to quality care in accredited medical facilities.