The 1/40 rule: what the Registration Code says
Article 353-7 of the Registration Code gives the only official valuation of an agricultural concession right. The right created by Law 10-03 "is valued, for each remaining year of the concession, at one fortieth (1/40) of the market value of the conceded land, without fractions". A right with forty years to run is worth the whole land; one with ten years is worth a quarter.
This value is used for the land registration tax when the deed states no price. It does not set the market price, which is negotiated. But it is the benchmark the tax office has in front of it, and a declared price far below it draws attention.
Who pays what when the deed is signed
The land registration tax is 1 % of the value declared in the deed (art. 353-2), with a 2,000 DA minimum (art. 353-3). It is borne by the buyer, who pays it to the land registrar (art. 353-10).
The 5 % registration duty of article 252 covers deeds transferring ownership or usufruct. A concession is strictly neither, and no text expressly settles the point. The calculator adds it as a precaution, with a tick box; the actual rate is confirmed with the notary.
On the seller’s side, the question is capital gains IRG. Law 10-03 classes the concession as a real property right (art. 12), a category covered by articles 77 and 78 of the Direct Taxes Code. Our reading is that the transfer can fall within scope, at 15 %. A concession created by converting a former EAC or EAI was granted without a price, so article 78 sets the acquisition price at 40 % of the sale price.
Why the real price moves away from the tax value
The tax value ignores what actually drives the price of a farm: water, trees in production, buildings, whether the annual fees are paid up. Irrigated, planted land can be worth well above its fraction; dry land with twelve years left is sometimes worth less.
The useful habit is to turn every listing into a price per hectare per remaining year. Two offers at 3 million dinars a hectare are not equal if one has thirty years to run and the other eight.
Frequently asked questions
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