Request two copies of the certificate of registration and the legal situation of the land at the Land Registry
Agency: Land Registry (Service des Domaines et de la Conservation Foncière)
This certificate is an extract from the property registry books and must be obtained in the past three months maximum. It gives the history of previous registrations on the Registry books and indicates the identity of the current owner of the land. It also shows any encumbrances on the property. According to Article I of the Decree No. 21 020/2012-VPDAT/SG/DGSF of the Deputy Prime Minister in charge of Development and Planning, effective August 2, 2012, the cost of a copy of the certificate is MGA 2,000.
Time and cost: 21 days, MGA 4,000 (MGA 2,000 per copy (2 copies))
Request two topographical extracts with coordinates at the ‘Service de la Topographie’
Agency: Topographic service (Service de la Topographie)
The coordinates allow the marking of the property and are expressed in ‘x’ and ‘y’. The plan has to be signed by both parties and is annexed to the request for authorization of the real estate transaction. This extract can also be traced by a sworn surveyor to delimit the part of the land to be ceded, in case the operation does not cede the entire property. According to Article 14 of Decree No. 21 021/2012-VPDAT/SG/DGSF of the Deputy Prime Minister in charge of Development and Planning, effective August 2, 2012, the rates are:
- 1,000 MGA by plan size 720 mmx 1020 mm,
- 1,000 MGA by plan size 520 mm X 720 mm,
- 1000 MGA by plan size 420 mm X 620 mm,
- 500 MGA per plane for size 320mm X 420 mm,
- 500 MGA per plane for the format 210 X 297 mm.
Nevertheless, the cost and time noted here are for a simple plan, intended for a transfer whereby the buyer is not planning on making changes or constructions to the property. For more complex uses of the property, a more detailed plan would have to be drawn, costing up to MGA 5000 (which is more aligned with the case study assumptions).
Time and cost: 21 days, MGA 10,000 (MGA 5,000 per plan (2 plans))
Request authorization to conduct a real estate transaction at the Regional Planning Service (Ambatomena Antananarivo)
Agency: Regional Planning Service (Ambatomena Antananarivo)
This is an administrative document that indicates, in relation to the Master Plan, whether the land is in specific areas and whether it is struck with urban servitude. It is necessary to attach the certificate of real rights and legal status of the land (less than three months old) and five copies of the plan. The plan must always have the Laborde X and Y coordinates. Only the director of the planning department is authorized to approve the file. In case of absence, it takes longer.
Time and cost: 11 days, no charge
Notary drafts and notarizes the sale agreement
Agency: Notary
In 2007, Madagascar adopted a new law: “Loi 2007.026 du 12/12/2007 portant statut du notariat a Madagascar”. This law, published in the Official gazette Nº 3181 on April 14th, 2008, makes it mandatory to use the services of a notary for all property transaction for a value above 15 000 000 MGA.
Notary fees are assessed as follows according to the Arrêté n°30 286/2011 of October 17, 2011.
The rate varies depending on the administration account multiplied by a coefficient which is calculated as follows:
- For the administration account multiplied by the coefficient 1 or CA1:
- From 0 to 10,000,000 MGA: 3%
- From 10,000,001 MGA to 20,000,000 MGA and up 2.5%
- From 20,000,001 MGA to 40,000,000 MGA and up 2%
- Above 40 million MGA: 1.5%
- For the administration account multiplied by the coefficient 2 or CA2:
- From 0 to 10,000,000 MGA: 5%
- From 10,000,001 MGA to 20,000,000 MGA: 4%
- From 20,000,001 MGA to 40,000,000 MGA: 3.5%
- Above 40 million MGA: 2%
The cost of notarizing the sale agreement corresponds to the CA1 range calculation.
Time and cost: 3 days, MGA 1,476,499.71
Notary fees are assessed in installments for the administration account multiplied by the coefficient 1 or CA1:
- 3% from 0 to 10,000,000 MGA
- 2.5% from 10,000,001 MGA to 20,000,000 MGA
- 2% from 20,000,001 MGA to 40,000,000 MGA
- 1.5% above 40 million MGA
Registration of sale agreement at the Office of Property Registry
Agency: Tax Authority
Fiscal procedure for paying the registration fees on the property and the tax on the appreciation of the property. Fees are determined by the General Tax Code 2013 Article 2.2.39
Capital gains tax for companies transferring property is no longer applicable according to the Loi des Finances 2007.
Time and cost: 4 days, MGA 3,754,999.03 (5 % property value for registration fees)
Request transfer to be recorded in the books at the Land Registry
Agency: Land Registry (Service des Domaines et de la Conservation Foncière)
The property right is not transferred until it has been transcribed on the books at the Land Registry. When the notary or the buyer file for registration at the Land Registry, the “Duplicata” must be attached to the sale and purchase agreement duly notarized. Once the transcription is done, the Registrar will give the “Duplicata” to the new buyer with his name written as the new owner of the property. According to Article I of the Decree No. 21 020/2012-VPDAT/SG/DGSF of the Deputy Prime Minister in charge of Development and Planning, effective August 2, 2012, the cost is 2% + fixed fee of 15,000 MGA.
Time and cost: 60 days, MGA 1,516,999.61 (2% property value (transfer tax) + MGA 15,000 (fixed fee))
