Many foreigners are drawn to Madagascar due to the astonishing beauty of its landscapes, the remarkable friendliness of its people and the uniqueness of its wildlife.

The peaceful and laid back vibes of Madagascar make the island an alluring destination for foreigners, not only for a short holiday trip, but even as a place to settle down permanently or have a vacation home. 

This leads many foreign citizens to ponder: “Can you actually buy property in Madagascar as a foreigner?”

TL;DR: Yes, foreigners can buy property in Madagascar through a 99-year lease, which gives foreigners the right to use, exploit, develop, and resell a property on the same terms as a citizen of Madagascar. A tax fee must be paid to the government of Madagascar when establishing the lease. There are no ongoing/recurring fees to pay in order to maintain the lease.

And in this article we will explain how foreigners can buy property in Madagascar.

How to Buy a Property as a Foreigner in Madagascar

There are 3 distinct ways that foreigners can buy property in Madagascar:

1. Purchase a property with a 99-year lease
2. Purchase a property through a Madagascar company
3. Purchase a property through a national intermediary

Method 1: Purchase a Property in Madagascar With a 99-Year Long Lease

As a foreign citizen, you are not able to purchase a property in Madagascar on a freehold title. However, foreign citizens are able to obtain what’s known as a “long lease” for up to 99 years, also known as a “bail emphytéotique” in French. 

This is, in essence, the same as owning the property. Leasing a property for 99 years gives you all the same rights to exploit, develop, and resell the property as a citizen of Madagascar would have.

Furthermore, the lease can be extended beyond the initial lease period for an additional 99 years, if you’re lucky enough to outlive your lease, or if you want your descendants to inherit the property.

In other words, there are no restrictions as to what you can do with the property you have purchased/leased on a 99-year lease.

Therefore, leasing a property in Madagascar is, practically speaking, the same as owning a property with a freehold title. 

Establishing a 99-year lease when purchasing a property in Madagascar is a relatively simple procedure, and Madagascar Invest can help you through the process.

Method 2: Purchase a Property in Madagascar Through a Company

Another safe and viable way to buy real estate in Madagascar is through a local company.

Buying a property through a Madagascar-based company gives you, along with other shareholders in the company full rights to use, exploit, develop, and resell properties in Madagascar.

However, if the company is majority foreign owned, it still remains necessary to purchase the property on a 99-year lease.

If you want to purchase a property as a foreigner with a company, Madagascar Invest can help you set up your company locally.

Setting up a company such as an LLC (SARL) is a relatively straightforward process for Madagascar Invest.

We prepare all the necessary documents, you sign, and we deposit the documents with the relevant authorities. When that is done, you will be able to purchase property through your Madagascar-based company.

Keep in mind, whether you intend to use your company to run a business, or if you just want to use it for the purpose of purchasing real estate, you are still liable to file taxes once every calendar year.

Buying a property through a Madagascar company with a 99-year lease is a good and safe way to own real estate in Madagascar as a foreigner.

Method 3: Purchase a Property Through a Madagascar Intermediary

Many foreigners opt to purchase a property through an intermediate owner of Malagasy citizenship. This is most often a trusted friend or a spouse.

If you decide to purchase a property through a Malagasy individual, it is important that there is complete trust and transparency between the parties.

In essence, the Malagasy individual is the one who maintains 100% ownership over the property, and therefore, the foreign investor has no legal right or claim on the property.

Unless expectations are properly managed, and there is sufficient trust between the parties, this way of purchasing a property can often lead to conflict between the parties.

At Madagascar Invest, we do not recommend purchasing a property with a Malagasy intermediary, unless there is absolute trust and clear expectations between the parties.

Key Takeaways

• Foreign nationals can buy property in Madagascar on a 99-year lease.
• There are no ongoing/recurring fees to pay in order to maintain the lease.
• A 99-year lease gives the foreign leaseholder full rights of use over the property.
• A 99-year lease can be resold to other foreign investors, or resold to Madagascar nationals as a regular property title.
• Foreign nationals can renew the lease after 99 years by paying a fee to the government.
• The 99-year lease can be passed on to the heirs of the original leaseholder.
• Property can be purchased through a Madagascar based company.
• If the company has majority foreign ownership, a 99-year lease is still required

How to Get Started?

Regardless of the method you wanna use for purchasing a property in Madagascar, there is only one way to get started: the first thing you have to do is identify a property that you wish to purchase.

Here at Madagascar Invest, we specialize in helping foreigners buy real estate in Madagascar in a safe, fast, and transparent manner.

We invite you to browse our current real estate listings, and to contact us if you find a property that appeals to you.

When you have identified a property you want to buy, we can assist you with all the legal procedures, to ensure that the property is titled in your name. 

Now, go forth and purchase your own piece of Madagascar. The big island welcomes foreign investors, and Madagascar Invest is here to guide you at every step of the way.