WHAT ARE THE LEGAL CONDITIONS FOR FOREIGNERS ACQUIRING PROPERTY?

 The process of acquiring land in Madagascar by a foreigner can be conducted in two schemes:

• By establishing a company in Madagascar.
• Through the conclusion of a long-term lease agreement with the property owner or its long-term lessee, or assignment of a long-term lease agreement.

Establishing a Company: A foreigner can form a company in accordance with Madagascar law, usually in the form of "Société à Responsabilité Limitée" (SARL), which is equivalent to a limited liability company. Such a company must be registered in the Madagascar commercial office and have at least one Malagasy partner with shares above 50%.

A simpler and much more common solution is to enter into a long-term lease agreement ("emphyteutic lease"). A foreigner can conclude a long-term lease agreement of the property with a local owner or sublease with the lessee, or take over the long-term lease of the property through an assignment agreement. These agreements are usually made for a period of 30-99 years and can be extended. This lease must be registered in the Madagascar land registry office.

Fees and Taxes: The buyer is obliged to pay all notarial fees (if applicable), legal fees, taxes, and other charges associated with the transaction.