Madagascar Property Tax Guide 2026

Overview — Property Taxation in Madagascar

Property taxation in Madagascar is administered by the Direction Générale des Impôts (DGI). The main taxes on property include registration duties on transfers (droits d'enregistrement), an annual land tax (taxe foncière) on built and unbuilt property, and capital gains tax on property disposals. The registration system is managed by the land registry (Service du Domaine) under the Ministry of Land. Buyers should conduct thorough due diligence, including title searches at the land registry, to verify ownership and encumbrances before purchase.

Registration Duties — 5% to 20% Sliding Scale

Registration duties are payable on property transfers and are calculated on the consideration or market value of the property, whichever is higher. The sliding scale rates are:

• 5% — transfers between spouses, direct ascendants/descendants (family transfers)
• 10% — transfers between siblings and other relatives
• 15% — transfers between unrelated individuals for residential property
• 20% — transfers of commercial property or land between unrelated parties

Registration duties are paid to DGI at the time of registration of the transfer deed. The deed must be registered within 1 month of execution. Late registration attracts penalties. The registration fee is typically borne by the buyer unless otherwise agreed in the sale contract.

Land Tax (Taxe Foncière)

The land tax (taxe foncière) is an annual tax on built and unbuilt property. The rate is generally 0.5% to 1% of the cadastral value of the property for built land and 0.2% to 0.5% for unbuilt land. The tax is assessed by DGI based on the cadastral survey value. Payment is made annually to DGI. Default attracts penalties of 10% plus interest at 1.5% per month. The tax is used to fund local government services. Revaluations of cadastral values occur periodically.

Other Acquisition Costs

In addition to registration duties, property buyers should budget for:

• Notary fees — typically 2–5% of property value (regulated tariff)
• Land registry search fee — MGA 50,000–200,000
• Survey fees — MGA 200,000–1,000,000 depending on complexity
• Legal fees — 2–5% of property value if using a lawyer

Total transaction costs for buying property in Madagascar typically range from 10% to 25% of the purchase price, primarily driven by registration duties.

FAQs

Do I pay property tax if I own a house but live abroad?

Yes, land tax is payable regardless of the owner's residency. Non-resident owners should appoint a local agent to handle tax payments. Registration duties still apply on any future sale.

How is property value assessed for registration duties?

DGI uses the higher of the declared sale price or the cadastral value. Under-declaration is common but risky — DGI has a right of pre-emption at the declared value and may audit the transaction.

Are there tax incentives for property developers?

Madagascar offers some incentives for real estate development including reduced registration duties for first-time home buyers and VAT exemptions on affordable housing projects under the investment code.

Disclaimer

This guide provides general information about Malagasy property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Malagasy property lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.