For foreigners, purchasing land, property, or a house in Madagascar is often surrounded by misconceptions. However, a precise and strict legal framework governs real estate investment for foreign nationals. Real estate professionals, such as Madagascar Invest, assist in acquisition projects to ensure these investments are facilitated and secured in full compliance with the law.
Full Land Ownership: A Legal Impossibility for Foreigners
Under current Malagasy legislation, owning land requires holding a ‘land title’ (titre foncier). It is constitutionally and legally impossible for a foreign national to hold full land ownership rights on Malagasy soil.
For foreigners wishing to acquire property, the key lies in understanding the secure legal alternatives provided by the law. To encourage investment while preserving the national domain, Malagasy legislation has structured specific mechanisms, primarily through two options: the long-term lease (bail emphytéotique) or acquisition through a local corporate structure.
The Emphyteutic Lease: The Reference Solution for Land Use
The emphyteutic lease is the most common and secure legal solution for foreign individuals. It is a very long-term rental contract, which can last up to 99 years. To be valid and enforceable, this contract must be drafted and signed before a notary, followed by formal registration with the land services (services domaniaux).
Throughout the lease, the lessee (emphyteote) holds rights very similar to those of a traditional landowner. They have the right to build on the land, mortgage their lease rights with banks to obtain financing, or transfer and bequeath their rights to third parties.
Buying Through a Malagasy Company
An alternative to the emphyteutic lease is the creation of a local company. A foreign national has the right to create or hold shares in a Malagasy company, such as an SARL (Limited Liability Company) or an SA (Public Limited Company). As a legal entity under Malagasy law, this company can legally acquire land to develop its business activities.
However, it must be noted that for a company to acquire land in full ownership, the majority of its share capital (more than 50%) must be held by Malagasy nationals. Otherwise, it is considered under foreign control and remains subject to restrictions on land ownership.
Best Practices for Foreigners
The first mistake is engaging in informal arrangements or private contracts. Using a ‘nominee’ (a local third party who signs the deed on your behalf) without a protective legal framework is highly risky and frequently leads to inextricable disputes. To secure your purchase, the process must follow formal administrative and legal steps.
Frequently Asked Questions
Can one fully own the walls of a house without owning the land? Yes. Malagasy law makes a clear distinction between ownership of the soil and the building. A foreigner can be the full owner of a construction (villa, building, commercial space) without owning the underlying land. Under an emphyteutic lease, all constructions built by the lessee belong to them for the duration of the contract via the ‘right of surface’ (droit de superficie).
What happens to the property in the event of the foreign investor’s death? The emphyteutic lease is fully transferable. In the event of the death of the foreign lessee, the land occupancy rights and the full ownership of the associated buildings are transferred to their heirs for the remaining duration of the initial contract.
Captured & Published at: 2026-07-14 17:56:47 (Madagascar Local Time EAT)
Original Source: https://2424.mg/un-etranger-peut-il-acheter-un-terrain-ou-une-maison-a-madagascar-ce-que-dit-reellement-la-loi/?utm_source=rss&utm_medium=rss&utm_campaign=un-etranger-peut-il-acheter-un-terrain-ou-une-maison-a-madagascar-ce-que-dit-reellement-la-loi
