WHAT ARE THE REGULATIONS THAT FOREIGN INVESTORS MUST COMPLY WITH IN MADAGASCAR?

Foreign investors in Madagascar are subject to compliance with the laws and regulations in force, as outlined in the Investment Law. This law guarantees freedom of investment, equality of treatment, protection of patent rights, freedom to transfer funds abroad without prior authorization, and protections against expropriation. There is no requirement for national ownership or restrictions on the mobility of foreign investors. The government has adopted texts to promote foreign investment in Madagascar, including a new law on Public Private Partnerships.

Foreigners in Madagascar can acquire real estate through an emphyteutic lease, which is a long-term and renewable lease agreement with certain advantages. The emphyteutic lease allows foreign individuals to enjoy the rights of ownership during a period agreed and defined, usually between 18 and 99 years. The rights of the lessee include the full enjoyment of the property (without damaging it) in the context of an agricultural, fish-farming, commercial or industrial activity against an annual or monthly rent. It is also possible to sublet the property, or to build for own housing or rental. The emphyteutic lease offers the opportunity to secure a bank loan by the means of a possible mortgage.