Investing in Madagascar
E. INVESTMENT INCENTIVES AND PROTECTION
The investment law provides various provisions that were designed to give incentives and protection to all investors without discrimination.
1. Land acquisition by foreign investors
The Investment law gives foreign companies the right to acquire land and real estate for their activities under certain conditions.
2. Investment protection
Madagascar has signed foreign Investment Promotion and Protection Agreement with some countries, such as Canada, Mauritius, France, and Germany. Such an agreement provides a framework of legally binding rights and obligations. Malagasy law recognizes private property and expropriation cannot be done without due process and appropriate compensation.
3. Fiscal incentives
Export-oriented companies can apply for Export Free Zone status and get the fiscal advantages spelled by the law 89-027. Fiscal incentives for other sectors are as defined by the annual financial law adopted by the Parliament which applies indiscriminately to all companies. However, very large investments can negotiate some fiscal advantages with the Administration.