Relocation intelligence
🇲🇬 Moving to Madagascar: tax, residency and cost of living
Madagascar levies income tax (IRSA) on a progressive scale up to 25 percent, with a new top band of 25 percent introduced from 2026. At income around the equivalent of EUR 54,000 the effective rate sits at roughly 24 percent, including about 2 percent in social contributions. The system is broadly territorial, so foreign income often falls outside the charge. VAT is 20 percent and corporate tax is likewise 20 percent.
Thinking of moving to Madagascar? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.
Key facts
- Top income tax
- 25%
- Corporate tax
- 20%
- Capital gains
- 20%
- Wealth tax
- No
- Inheritance tax
- Yes
- Cost of living index
- 30
- Safety
- 4/10
- Internet quality
- 3/10
- Visa-free destinations
- 66
- Foreigners can own property
- No
- Residency in
- 6 months
- Citizenship in
- 5 years
Taxes
IRSA rises to 25 percent, with a new 25 percent band from 2026. At around EUR 54,000 the effective burden is about 24 percent including some 2 percent social contributions. The system is broadly territorial. VAT and corporate tax are each 20 percent.
Residency and visas
Naturalization as a Malagasy citizen typically takes about 10 years. Residence is possible through standard permits, but the path to a passport is long.
Property ownership
Foreigners cannot own land. Access to property runs through long leases and rental arrangements rather than full ownership.
Cost of living and quality of life
The cost of living is very low, but Madagascar is among the world's poorest countries. Healthcare, infrastructure and power supply are weak and unreliable. Nature is unique, with lemurs and baobabs, and the working languages are French and Malagasy.
Passport and mobility
The Malagasy passport is weak, ranked around 66th in global indices. Visa-free travel options are therefore limited compared with many European passports.
Why people move to Madagascar
Unique island ecosystem
Madagascar is a huge Indian Ocean island with biodiversity found almost nowhere else, from lemurs to baobabs. For those seeking nature and calm, the setting is exceptional.
Territorial system and very low costs
The broadly territorial tax system often keeps foreign income outside the charge, while the cost of living is among the lowest in the world. This can substantially raise net purchasing power.
Honest trade-offs
- Buitenlanders mogen in Madagaskar geen grond in eigendom hebben en zijn aangewezen op langlopende erfpacht.
- Madagaskar behoort tot de armste landen ter wereld, met zwakke gezondheidszorg, infrastructuur en een onbetrouwbare stroomvoorziening.
- Het Malagassische paspoort is zwak en staat rond plek 66 in mondiale ranglijsten, met beperkte visumvrije toegang.
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