Foreign investment in land and other real estate assets is only permitted in tandem with the carrying out of another commercial/economic activity. Foreign investors, including foreign-owned companies incorporated in Madagascar, cannot undertake "pure" financial real estate investments.
CHAPTER V - ACCESS TO CORPORATE REAL ESTATE
Art. 18 - Access of foreign investors to real estate property
a- Companies governed by Malagasy law whose management is placed under the control of foreigners or organizations themselves dependent on foreigners within the meaning of amended art 22 of Ordinance No. 62-041 of September 19, 1962 relating to the general provisions of domestic law and private international law are authorized to acquire real estate subject to fulfilling the two conditions following accumulations:
the companies must have obtained from the EDBM, prior to the final conclusion of any real estate transfer deed, an authorization called "Land Acquisition Authorization" which will be issued under the conditions set out in Article 19 below;
the real estate must be assigned exclusively and continuously to the exercise of a commercial activity, in particular industrial, tourist or service activity or an agricultural or fishing activity. The commercial activity cannot consist in the acquisition of the building with a view to its resale, in the state or after completion of developments or constructions.
b- Foreign natural or legal persons cannot directly access land ownership. However, they may freely and without prior authorization contract an emphyteutic lease, for a maximum period of ninety-nine years, renewable.
Art. 19 - Land acquisition authorization
1. The land acquisition authorization is issued at the level of the EDBM acting on behalf of the Ministry in charge of Lands, at the request of the investor, who, for this purpose, files a file with the EDBM containing the following parts:
- written request presented on a printed form provided by the EDBM;
- presentation of the planned activity and the reasons justifying the acquisition of the building intended for its exercise;
- Certificate of legal status of the building whose acquisition is envisaged if the building is already registered or cadastralized;
- and all other documents required, depending on the case, by the administration in charge of Domains, in support of a request to acquire a building.
The EDBM gives the applicant a receipt for submitting the file.
2. Said authorization does not constitute in any case a title deed on the building which is the subject of it, but only the document allowing the parties to carry out the formalities legally provided for the transfer of a building.
3. Real estate acquired on the Land Acquisition Authorization may be freely assigned or transferred, with the exception of assignments or transfers for the benefit of foreign persons.
The property may also be transferred to companies governed by Malagasy law whose management is placed under the control of foreigners or dependent organizations themselves of foreigners, subject to obtaining a Land Acquisition Authorization issued in accordance with the provisions of article 17 above and of this article.."[...]" (Law N° 2007-036 of January 14, 2008 on Investments in Madagascar [google translation])
Law N° 2007-036 of January 14, 2008 on Investments in Madagascar [google translation]
[<a href="https://www.assemblee-nationale.mg/wp-content/uploads/2020/11/Loi-n%C2%B0-2007-036-sur-les-Inv.%C3%A0-Mcar.pdf">Law</a>]