Madagascar Wealth Tax Guide 2026

Overview — No Wealth Tax in Madagascar

Madagascar does not impose an annual tax on net wealth, net worth, or total assets. The government relies on income taxes (IRPP, IBS), VAT (TVA), transaction-based taxes (registration duties), and property-related taxes rather than periodic wealth taxes. Financial assets including cash, bank deposits, listed shares, bonds, Treasury bills, and mutual fund units are not subject to any annual wealth or holding tax. There is no solidarity surcharge, wealth-based levy, or exceptional contribution on high net worth. The only recurring tax on wealth is the annual land tax on real property ownership.

Land Tax (Taxe Foncière) — The Proxy Wealth Tax

The land tax (taxe foncière) is the closest Madagascar has to a periodic wealth tax. This is an annual levy imposed on owners of built and unbuilt property:

• Built land (taxe foncière sur les propriétés bâties) — 0.5% to 1% of the cadastral value of buildings and improvements
• Unbuilt land (taxe foncière sur les propriétés non bâties) — 0.2% to 0.5% of the cadastral value of land

The cadastral value is assessed by DGI based on location, size, construction quality, and market conditions. Revaluations occur periodically. The tax is payable annually by the property owner as of 1 January. The revenue from taxe foncière is shared between the national government and local communes. Exemptions apply for agricultural land, public buildings, religious buildings, and properties owned by registered charities. Non-payment attracts penalties of 10% plus interest at 1.5% per month, and DGI may ultimately seize and auction the property.

Taxes on Assets vs. No Wealth Tax

While Madagascar has no annual wealth tax, it does impose transaction and income taxes on assets:

• Land tax (taxe foncière) — 0.2–1% annual on cadastral value (wealth proxy)
• Registration duties — 5–20% on property transfers (acquisition or inheritance)
• CGT withholding — 5% (residents) or 10% (non-residents) on property disposals
• Rental income — taxed under progressive IRPP rates (0–36%)
• Dividend WHT — 20% final tax on dividends
• Interest WHT — 20% on interest income (bank deposits, T-bills, bonds)
• Gift tax — 5–20% registration duties on lifetime gifts

These taxes apply when an asset generates income or is transferred, not on the mere holding of the asset. This is a significant difference from countries that impose annual wealth taxes (e.g., France, Norway, Spain, Switzerland).

Wealth Tax Proposals & Debate

There has been periodic debate in Madagascar about introducing a wealth tax (impôt sur la fortune) to address fiscal deficits and inequality. Proposals have included an annual tax on net wealth above a threshold (e.g., MGA 500 million) or a luxury tax on high-value assets. As of 2026, no such tax has been enacted or is under active consideration by the government. The government has focused on improving compliance with existing taxes, expanding the taxpayer base, and digitalising tax administration rather than introducing new wealth taxes. Madagascar's membership in the Franc Zone and its desire to attract foreign investment weigh against introducing a wealth tax that could encourage capital flight.

International Comparison

Madagascar's position as a no-wealth-tax jurisdiction aligns it with most African countries that do not tax net wealth. This contrasts with some European countries (Norway 1.1%, Switzerland up to 0.5%, Spain up to 3.5%) and Latin American countries (Colombia, Argentina) that impose annual wealth taxes. For international investors and expatriates, Madagascar offers a tax-efficient environment for holding investment assets, though careful planning is still needed for income tax, land tax, and transaction taxes. The absence of a wealth tax is a positive factor for those considering relocation to Madagascar.

FAQs

Do I need to declare my assets annually in Madagascar?

There is no annual wealth declaration requirement for tax purposes. However, public officials are required to declare their assets to the Independent Anti-Corruption Bureau (BIANCO) under the Code of Conduct for Public Officials.

Are there any taxes on crypto holdings if I don't sell?

No, merely holding digital assets does not trigger any tax in Madagascar. Tax arises only when crypto is disposed of (sold, exchanged, or used for payments), at which point it may be taxed as income from movable property.

Could Madagascar introduce a wealth tax in the future?

While there have been proposals, a wealth tax is not currently under active consideration. The government's priority is improving compliance with existing taxes rather than introducing new taxes.

Disclaimer

This guide provides general information about wealth taxation in Madagascar for the 2026 tax year. Tax laws may change. Always consult with a qualified Malagasy tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.