Madagascar Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Madagascar does not levy a specific inheritance tax, estate tax, or death tax. Instead, the transfer of assets upon death is subject to registration duties (droits d'enregistrement) payable when the inheritance is registered with DGI. These duties are calculated on the net value of the assets inherited (after deducting debts and funeral expenses). Lifetime gifts are also subject to registration duties on the market value of the gifted assets. The administration of estates is governed by the Malagasy Civil Code (Code Civil) and, for certain matters, by customary law (droit coutumier) recognised in specific regions. The DGI and the land registry (Service du Domaine) are the main authorities involved in inheritance and gift administration.

Registration Duties on Inheritance — 5% to 20%

Registration duties on inherited assets are calculated on the net value of the estate and vary by the relationship between the deceased and the heir:

• 5% — transfers to spouse and direct descendants (children, grandchildren)
• 10% — transfers to parents, siblings, and other direct ascendants
• 15% — transfers to other relatives (aunts, uncles, cousins, nephews, nieces)
• 20% — transfers to non-relatives and unrelated persons

The net value of the estate is the gross value of assets minus debts, funeral expenses, and administration costs. Assets include real property, bank accounts, shares, vehicles, and personal property. There is a basic allowance of MGA 5,000,000 for direct descendants and spouses, meaning inheritance below this threshold attracts no registration duty. The registration must be filed with DGI within 6 months of the date of death. Late filing attracts penalties of 10% plus interest at 1.5% per month.

Gift Tax During Lifetime

Lifetime gifts are subject to registration duties at the same sliding scale rates as inheritances. The duty is payable on the market value of the gifted asset at the time of transfer. The donor is primarily liable for the duty, but the parties may agree otherwise. Small customary gifts (e.g., gifts for weddings, birthdays) below MGA 500,000 are exempt. Gifts to registered charities and religious organisations are exempt from registration duties. Unlike inheritance, there is no basic allowance for lifetime gifts. The gift must be declared to DGI within 1 month of the transfer. Failure to register a gift may result in penalties of 10% plus interest, and the gift may be challenged in court.

Intestate Succession — Malagasy Civil Code & Customary Law

If a person dies without a will (intestate), the distribution of their estate follows the rules of the Malagasy Civil Code, with potential application of customary law depending on the region and community. Under the Civil Code, the estate is divided as follows:

• Spouse and children — the spouse receives 1/4 usufruct (or 1/2 in full ownership if no children), children divide the remainder equally (réserve héréditaire)
• No spouse, children survive — children inherit equally; the law protects the réserve héréditaire (forced heirship portion) of children
• No spouse, no children — parents and siblings inherit according to Civil Code rules
• Customary law — in certain rural areas, customary succession rules (droit foncier coutumier) may apply to land, with preference for male heirs

The forced heirship rules (réserve héréditaire) protect children from being disinherited: a portion of the estate (typically 50–75% depending on number of children) must pass to them by law. The remaining portion (quotité disponible) may be freely disposed of by will.

Wills & Probate

A will (testament) is the most effective way to ensure assets pass according to the deceased's wishes. Madagascar recognises several types of wills under the Civil Code:

• Holographic will — entirely handwritten, dated, and signed by the testator
• Notarial will (authentique) — executed before a notary in the presence of two witnesses
• Mysterious (secret) will — sealed envelope deposited with a notary

Probate (envoi en possession) is the legal process of recognising the will and granting the executor authority to administer the estate. The process involves applying to the Tribunal de Première Instance (First Instance Court) with the will, death certificate, and inventory of assets. Probate typically takes 3–6 months in Madagascar. Foreign nationals with assets in Madagascar should have a separate Malagasy will covering their local assets to avoid delays and conflicts of law. International wills under the Washington Convention (1973) are recognised in Madagascar.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, the gain (sale price minus the deceased's original cost basis — no step-up to market value) is subject to capital gains withholding tax at 5% (residents) or 10% (non-residents). The 5–20% registration duty paid on inheritance is added to the cost basis for CGT calculation.

Is there a way to reduce registration duties on inheritance?

The basic allowance of MGA 5,000,000 for direct descendants provides relief for smaller estates. For larger estates, the progressive rates based on relationship are fixed by law. Estate planning through trusts or life insurance may offer alternatives.

Does Madagascar recognise foreign wills?

Foreign wills may be recognised in Madagascar through the probate process, but it is advisable to execute a separate Malagasy will for assets located in Madagascar. The 1973 Washington Convention on International Wills applies.

Disclaimer

This guide provides general information about Malagasy inheritance and gift tax for the 2026 tax year. Succession law is complex and intersects with customary law. Always consult with a qualified Malagasy lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.