Madagascar
| Pros |
|---|
| Low labor costs and significant opportunities for private investment in emerging sectors |
| Tax incentives for export-oriented enterprises within designated free zones |
| Minimal government oversight in remote regions allowing for autonomous lifestyle and resource development |
| Cons |
|---|
| Pervasive systemic corruption and weak judicial protection for private property rights |
| Severe infrastructure deficits, particularly regarding unreliable power grids and dilapidated road networks |
| Persistent political instability and rising security risks impacting long-term business predictability |
Will Madagascar tax what you earn?
YES, FAIRLY. Personal income tax in Madagascar sits at an intermediate 20%. Residency follows the standard international pattern (day-count, economic interest, habitual abode), so anyone who actually lives here pays the full schedule.
Will Madagascar tax what you own?
YES, FAIRLY. Madagascar taxes capital gains at 20% on disposal, with no annual wealth overlay and no inheritance regime. The state takes its cut when value moves, not while it sits.
Is it easy to run a company in Madagascar?
YES, BUT TAXED. Corporate tax in Madagascar is 20%, but the tax isn't where this country hurts. It treats misuse of corporate assets as a criminal offense (the textbook case is the French abus de biens sociaux doctrine: using your own company's money for personal purposes can trigger prosecution, even as sole shareholder, because the company is a distinct legal person and your consent doesn't waive the offense). And it runs public corporate registries: your name as shareholder is queryable by anyone with a browser. For an owner-operator, those two combined are the real friction. Heavier than the rate, and far less negotiable. Running a clean structure is straightforward; running it casually isn't.
Is Madagascar good for your holding company?
NO. Madagascar doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
What does it cost to come and go from Madagascar?
SOME. Madagascar taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.
Will Madagascar protect your privacy?
YES. Madagascar has signed few exchange frameworks, so foreign tax authorities won't routinely see what you do here. But corporate registries are public: ownership and directorships are queryable by anyone with a browser. Privacy from abroad, transparency at home.
Is Madagascar itself a liability?
NO. Madagascar carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.
Will you feel free in Madagascar?
NO. Press freedom in Madagascar is restricted (RSF rank #113). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.
| Program | Status | Cross-border | Sources |
|---|---|---|---|
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e-Ariary
The main goals are to improve financial inclusion, to reduce costs for cash management and to strenghthen monetary sovereignity.
Banky Foiben'i Madagasikara
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RESEARCH | — | announce → |
Other jurisdictions worth comparing
Picked by similarity of strategic profile to Madagascar. No editorial ranking — neighbours in the same scoring space.