In 2025, Madagascar will establish itself as an increasingly popular destination for foreign investment. Thanks to a rapidly changing economic climate, competitive tax benefits, a growing local market, and a young and dynamic workforce, the Big Island is attracting the attention of global entrepreneurs.
In this context, specialized agencies like MadExapt play a key role in supporting investors in all their investment processes.
1. An Attractive Tax Framework for Foreign Investors
One of Madagascar’s major attractions lies in its investment-friendly tax policy:
- Corporate tax rate: The rate is set at 20% for ordinary companies. However, in certain free zones or priority sectors (industry, agri-food, construction, ICT), it can be reduced to 0% for the first 5 years, with exemptions on customs duties on imported equipment.
- VAT (Value Added Tax): Set at 20%, it offers attractive recovery mechanisms for exporting companies.
- Tax on Income from Movable Capital: This rate is 10%, which remains competitive by regional standards.
- Double Taxation Agreements: Signed notably with France, Mauritius, and China, these agreements avoid double taxation on profits.
2. A Growing Local Market
With more than 29 million inhabitants in 2025, growing urbanization, and an emerging middle class, the Malagasy domestic market shows strong consumption potential.
GDP Growth: The IMF forecasts growth of 5.4% for Madagascar in 2025, driven by agriculture, infrastructure, tourism, and mining.
Growth Sectors:
- Agribusiness: Madagascar is a major producer of vanilla, lychees, cocoa, spices, and more.
- Tourism: With its unique biodiversity and rich culture, the country attracts increasing numbers of tourists.
- Information and Communication Technology (ICT): A trained and skilled workforce with competitive costs.
- Renewable Energy: Solar and hydroelectric potential is considerable, and reforms are underway to facilitate private investment.
3. Economic perspectives for 2025
The Malagasy government is pursuing economic reforms aimed at improving the business climate:
- Digitization of administrative services (registration, taxes, customs, etc.)
- Creation of one-stop shops for foreign investors
- Modernization of port and road infrastructure
- Facilitation of remittances and international transactions
The government clearly demonstrates its commitment to attracting foreign investment as a driver of development.
4. MadExapt: Your strategic partner in Madagascar
For foreign entrepreneurs, the biggest challenge often remains the complexity of local administration. MadExapt, an agency specializing in supporting international investors in Madagascar, can make your setup easier. Services offered by MadExapt:
🏢 Business Creation
MadExapt supports investors from the very first steps:
Obtaining the NIF (Tax Identification Number)
- Issuing the STAT (Economic Activity Code)
- Registration with the Trade Register
- Assistance in opening business accounts with local banks
- Support in choosing the most advantageous legal structure
🛂 Residence and Visa Formalities
- Short- or Long-Term Business Visa
- Obtaining a Residence Permit for Investors or Expatriate Employees
- File Management with Immigration Services
- Certified Translations and Document Legalizations
🤝 Tailor-made Services for Expatriates
- Help in Finding Offices or Commercial Premises
- Connecting with Trusted Local Service Providers
- Legal and Tax Advice through Specialized Partners
5. Success Stories
“Thanks to With MadExapt, we were able to set up our company in less than a month and begin our import-export activities without any hassle. Their mastery of local procedures saved us a lot of hassle.”
— Jean-Paul L., French entrepreneur based in Antananarivo
“Their assistance with visas and residence permits was crucial. I was able to settle down with peace of mind with my family and develop my eco-tourism business.”
— Nadine M., Belgian investor in the hotel sector
Conclusion
In 2025, Madagascar combines attractive economic opportunities with an attractive tax framework and promising demographics. For foreign entrepreneurs wishing to establish a presence there, MadExapt is the trusted partner capable of facilitating every step of the entrepreneurial journey. By combining local expertise, administrative support, and a network of partners, the agency stands out as a strategic lever for any successful investment in Madagascar.
