In Madagascar law, an emphyteutic lease is a form of long-term lease that allowed foreigners to use property in Madagascar. This lease is usually made for a period of 30 to 99 years and can be extended.
1. Lease Agreement: The lessor (property owner) and the emphyteutic lessee (foreigner) conclude an emphyteutic lease agreement, which specifies conditions such as the duration of the lease, rental fees, and the rights and obligations of the parties. Such an agreement must be made in writing.
2. Fees and Taxes: The emphyteutic lessee is obliged to pay all registration fees, taxes, and other charges associated with the conclusion and registration of the emphyteutic lease agreement.
3. Registration of the Agreement: After paying the taxes and legal fees, the emphyteutic lease agreement must be registered in the Madagascar land registry office to be legally effective. This registration is necessary for the agreement to be effective against third parties and to protect the rights of the emphyteutic lessee.
4. Rights and Obligations of the Emphyteutic Lessee: The mphyteutic lessee is obliged to care for the property and bear the costs associated with its maintenance. Additionally, the emphyteutic lessee has the right to use the property, construct a house or other structures according to the law, rent it out, or transfer their lease rights to other entities, as long as it does not violate the terms of the emphyteutic lease agreement.
5. Extension of the Lease: Before the expiry of the emphyteutic lease agreement, the parties (or their legal successors) may negotiate an extension of the lease. In the event of a new agreement, it must also be registered in the Madagascar land registry office.
At any time, it is possible to assign the long-term lease agreement or sublease the property.