Living in Madagascar: 183-day tax residency, dividends in the IRCM (Institution for the Retirement of Madagascar) and a 99-year lease for a foreigner

This page reports information published in official Malagasy texts, the BOFiP (Official Bulletin of Public Finances), and impots.gouv.fr (the French tax authority's website). For income tax purposes, the Tax Code, as amended by the 2025 Finance Law, defines as residents individuals who have their principal residence in Madagascar for a cumulative total of 183 days over twelve months, who primarily carry out a professional activity there, or who have the center of their economic interests there. The 2026 Amending Finance Law addresses dividends and capital gains from the sale of securities in the Income Tax on Movable Capital (IRCM), for both residents and non-residents. A foreign national cannot directly acquire land ownership: the 2023 law provides for a maximum 99-year emphyteutic lease.

The scale of the tax on salary income (IRSA) applicable in 2026 is not detailed here.

Tax residence: Article 01.01.05 of the Tax Code

Law No. 2024-025, the Finance Law for 2025, published on the website of the National Council for Legislation (CNLEGIS), reproduces Article 01.01.05 of the Tax Code. It subjects to income tax, on all their income, individuals whose tax residence is in Madagascar. For natural persons, the following are considered tax residents:

• have their main place of stay in Madagascar for a cumulative period of 183 days over a period of twelve months;
• they primarily carry out a professional activity there;
• their center of economic interests is there.

The text lists these three situations without specifying how they combine, and the household criterion is not included. The tax residency certificate is governed by a regulatory text. The amending finance law for 2026 (law no. 2026-004) modifies this article by removing the word "together" in the third paragraph of section I; the resulting complete wording is not detailed here.

Article 01.01.04 classifies as income from Malagasy sources those from activities carried out in the territory and from the possession of property located in Madagascar, as well as those of resident natural persons, regardless of their origin.

Between France and Madagascar, Article 4 § 2 of the convention distinguishes between dual residences in this order, according to the text published by impots.gouv.fr: the permanent home, the center of vital interests, the habitual residence, the nationality, then the agreement of the competent authorities.

Recent texts: what each one brings

The table shows what four recent Malagasy laws contribute.

The Constitutional Court's decision on the 2026 Finance Law makes no mention of the IRSA (Income Tax on Salaries) or income tax rates. The bill's presentation to the National Assembly on November 19, 2025, cited "the adjustment of the IRSA rate to 25 million ariary per month for employees earning more than 4 million ariary." The Assembly's website does not specify the previous rate, the other income brackets, or the effective date. The text of the adopted text is not detailed here. The public portal Torolalana publishes, on an undated page (copyright 2025), a standard IRSA tax scale: 0 % up to 350,000 ariary, 5 % from 350,001 to 400,000, 10 % from 400,001 to 500,000, 15 % from 500,001 to 600,000, and 20 % above 600,000, with a minimum tax of 3,000 ariary. This page does not mention the 2026 Finance Law; its alignment with the adopted text is not established here.

IRSA, income tax and IRCM

The Franco-Malagasy convention mentions, on the Malagasy side, the tax on company profits, the tax on non-salary income of natural persons, the tax on salary and similar income (IRSA) and the tax on income from movable capital (IRCM).

In the 2026 Amending Finance Law, Article 01.04.02, 6°, refers to "dividends received as well as capital gains from the sale of securities realized by resident or non-resident natural or legal persons." Article 01.01.14 includes a provision regarding interest received by non-resident banks and credit institutions in Madagascar for their lending operations: the tax is withheld at source by the resident person. The IRCM (Income Tax on Capital Gains) rates and the withholding tax rates are not included in the excerpts read. The text read does not contain a final article on entry into force. The Directorate General of the Treasury states that the Amending Finance Law was promulgated on July 16, 2026, following the vote by the National Assembly on June 22.

Real estate: capital gains, registration fees and access for foreigners

The tax on capital gains from real estate (IPVI), according to Article 01.05.02, applies to capital gains realized by individuals upon the sale of real estate. Article 01.05.01 presents it as a final and liberating tax on income, and allocates 30 % of the IPVI related to land reserves to the National Land Fund. The rate does not appear in the excerpts reviewed. For registration fees, the base of a property cannot be less than its administrative value (Article 02.01.05), and the minimum fee is 20,000 ariary (Article 02.02.02). The Torolalana portal estimates the cost of purchasing land at approximately 10 % of its current value, without specifying a legal rate; the page is undated (copyright 2024).

Regarding access for foreigners, Law No. 2023-002 on investments, promulgated on July 27, 2023, stipulates in Article 18:

• Foreign natural or legal persons cannot directly access land ownership;
• They can use an emphyteutic lease with a maximum duration of 99 years, renewable according to the applicable legislation;
• Malagasy companies with foreign management can also use this. Article 1(5) presumes foreign control when there is more than half of the voting rights, or 40% of the voting rights without a larger shareholder.

Law No. 2026-007, declared constitutional on August 3, 2026, establishes the automatic transfer to the State of land registered in the name of foreigners during the colonial period. It specifically excludes land belonging to a diplomatic or consular mission, land already transferred to nationals before June 26, 1960, and land belonging to a foreign national who has since become a Malagasy citizen.

Inheritance and gift

According to Article 30, paragraph 3 of the 1983 Convention, the Convention of September 29, 1962, ceased to apply to inheritance taxes for estates opened after December 31, 1984. The 1983 Convention only applies to income taxes. Malagasy domestic law on inheritance and gifts is not detailed here.

Coordination with the Franco-Malagasy convention

The convention was signed in Tananarive on July 22, 1983, and entered into force on October 1, 1984, according to the BOFiP (Official Bulletin of Public Finances). The withholding tax ceilings on the Malagasy side, according to the text published by impots.gouv.fr, are as follows.

Wages are taxable in the country of residence only if the stay in the other country does not exceed 183 days in the tax year, if the employer is not a resident of that country, and if the expense is not borne by a permanent establishment (Article 15, paragraph 2). Capital gains on real estate are taxable where the property is located, while other gains are taxable in the country of the seller (Article 13). France grants a tax credit for dividends, interest, and royalties, capped at the corresponding French tax (Article 22). Details can be found on our page dedicated to the convention.

What this page does not cover

It does not detail the IRSA tax rates in effect in 2026, nor the IRCM, IPVI, and registration fees rates, nor property tax, VAT, residence permits and visas, social security, or domestic inheritance tax. These points should be verified with the General Directorate of Taxes of Madagascar. Balmont Conseil is not a law firm or a local tax advisor: local tax matters should be verified with a professional based in Madagascar. Matters pertaining to France, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• Your main place of residence, the number of days spent in Madagascar over twelve months and the exercise of a professional activity there.
• The nature of your income: salary, dividends, interest, royalties, capital gains from securities or real estate.
• The property in question: direct purchase impossible for a foreigner, 99-year lease, Malagasy company.
• Your residency situation in France and Madagascar, year by year.

The rule depends on your situation. No results are guaranteed.