Property Rights in Madagascar
Full ownership, usufruct, dismemberment: understanding your rights before investing on the Big Island
Before investing in real estate in Madagascar, it is best to understand precisely what the property rights This guide provides an overview, from the legal definition to the specificities of Malagasy land law: what it allows, how it can be shared among several holders, and how it is acquired.
What is property right?
Property is defined by Article 544 of the Malagasy Civil Code as "the right to enjoy and dispose of things in the most absolute manner", within the limits set by laws and regulations.
It's a principal real right It is exercised directly over property, without the intermediary of another person, and confers upon its holder the most complete prerogatives that a person can have over a thing:
- the use, the right to use or occupy the property; ;
- the fructus, the right to collect the income from it (rents, for example); ;
- the abuse, the right to dispose of it, including selling it.
Property rights can be subject to dismemberment, which gives its holder only part of these prerogatives — this is the case of usufruct and bare ownership, detailed below.
Absolute
The owner is free to occupy their property, rent it out to generate income, or sell it at the price of their choice.
Exclusive
A property can only have one owner, except for exceptions provided by law: joint ownership, undivided ownership, co-ownership of common areas.
Perpetual
Once acquired, ownership is retained indefinitely, until the property is sold or the owner dies.
Full ownership, bare ownership, and usufruct: 3 situations to distinguish
In practice, property rights are not always exercised by a single person. division of ownership It consists of distributing its attributes — occupying the property, collecting its income, selling it — among several owners. Three main situations can be distinguished:
Full ownership
The owner holds all the prerogatives: he can occupy the property (usus), to collect the income (fructus) and dispose of it, including selling it (abuse). This is the most complete form of ownership.
Bare ownership
The bare owner owns the building and retains the’abuse He can freely transfer ownership. However, he cannot occupy it or collect its income as long as the division of ownership remains in place.
Usufruct
The usufructuary does not own the property, but has the right to it.’usus and of the fructus : he can occupy it or rent it out and collect the rent, but he cannot sell it.
Summary: Who can do what?
| Right | Owner (full ownership) | Bare owner | Usufructuary |
|---|---|---|---|
| To dispose of the property (sell it, give it away) | YES | YES | NO |
| Use / occupy the property | YES | NO | YES |
| Collecting income (rent) | YES | NO | YES |
| To use the property as collateral (to mortgage) | Yes | Yes, regarding bare ownership | Yes, on his usufruct alone |
| Charges and major repairs | All charges | Major repairs (structure) | Routine maintenance and taxes |
| Duration of the right | Perpetual | Perpetual (full ownership upon death or the end of the usufruct) | Temporary (life annuity or fixed term) |
This table presents the general principles that apply. The precise details may vary depending on the constitutive instrument (contract, will, agreement) — personalized legal advice is always recommended before any dismemberment operation.
The division of ownership rights, in practice
Beyond usufruct, other real rights result from a division of ownership:
- THE right of use and habitation, which gives its holder the sole right to use the property — for example, the surviving spouse may have a lifelong right of use and habitation on the family home; ;
- THE easements, which allow the owner of a plot of land to use certain prerogatives over a neighboring property (right of way, drawing water, etc.).
A classic form of dismemberment is the life annuity sale : the seller transfers the bare ownership of his property while retaining the usufruct, that is to say the right to live in it or to collect the rents, until his death.
Another important real right is the’emphyteusis, a long-term lease (18 to 99 years, renewable) which notably allows foreigners to occupy property permanently in Madagascar, full land ownership being reserved for Malagasy nationals.
How to acquire property rights in Madagascar?
Articles 711 and 712 of the Civil Code define the different methods of acquiring real estate ownership rights. It can be obtained in three ways:
01
Inheritance or donation
By "accession", in the context of an inheritance due to death, or a transfer between living persons (donation).
02
Notarial deed
Following a property sale, or a court decision related to a dispute concerning the ownership of a property.
03
Acquisitive prescription
When an occupant without right or title behaves like an owner, without violence or abuse of rights, for a period of 30 years of occupation.
THE title deed This is the official document that certifies a person's rights to a piece of land or a building. It is either a copy of the authentic deed of sale when the property was purchased, or a property certificate when the property was inherited — a document that can be provided to you by the notary.
Specifics of Malagasy land ownership that you should know
Titled or registered land. Only land with a duly registered Land Title from the Land Registry offers full legal security, enforceable against third parties. Untitled land (customary occupation, vacant and ownerless land) exposes the owner to a higher legal risk and requires thorough verification before purchase.
Full ownership reserved for Malagasy nationals. Malagasy law restricts full land ownership to Malagasy citizens. Foreigners can secure their investment long-term through an emphyteutic lease, the only legally sound and sustainable way to occupy property in Madagascar.
Preliminary checks. Before any purchase, a thorough verification of the title, its history, and the absence of any disputes or mortgages is essential. This is precisely the purpose of the due diligence conducted by Aloha Immo Services on each property in its portfolio.
A question about property rights in Madagascar?
Our team assists you in verifying the titles, legally securing your purchase and choosing the structure best suited to your situation.