Can foreigners own real estate in Cambodia?

Since the passage of legislation in April 2010, the international ownership property regulation enables foreigners to possess residence in Cambodia, nevertheless with certain limitations.

Foreigners are just allow to possess properties on the very first floor or more to no more than 70% of anybody apartment building, so long as the building offers obtained a ‘strata name’, which generally pertains to new condominiums structures.

Foreigners aren’t allow to possess properties on the floor flooring of a building seeing that owning property outright remains to be prohibited beneath the foreign possession property law.

Therefore, foreigners are 100% permitted very own a freehold condo in Cambodia.

If a purpose is to purchase real real estate such as for example buying ground flooring apartments or property in Cambodia, please browse the information below.

if your intention is to purchase or invest in real estate such as for example buying grounded apartments or buying land in Cambodia, the next options will highlight how you’ll be able to buy just about anything in Cambodia.


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  1. Buying properties in Cambodia

    Under Cambodian Land Law, foreign nationals cannot hold a 100% stake in real property within the Kingdom (except for this case mentioned).

    However, legal mechanisms and documentation may allow foreigners to fully control the purchase, sale and use of real property in which they have invested, and benefit fully from any profits they make.

    There are basically 5 Options for buying real estate.

    Option 1: Forming a Company with a Cambodian Citizen

    The safest method by which foreign nationals can purchase real property within Cambodia is to form a limited company in partnership with a Cambodian citizen. Any real property purchased for investment is then registered in the name of the company. The company must have a minimum 51% Cambodian shareholding.

    However, careful allocation of shares, and careful drafting of the rights attached to share certificates can ensure the foreigner’s full control of the company and its assets.

    Additional mortgage, security and Power of Attorney documents can also be created to accompany ownership documentation. Following this procedure ensures security for the foreigner’s investment.

    Under this Option, the foreigner is expected to pay 100% of the purchase cost of real property plus any construction costs. If the real property is later sold, 100% of the sale price goes directly to the foreigner.

    This includes any profit accrued as a result of the property increasing in value. This issue should be detailed carefully in any company and/or sales documentation.

    Of course the choice of your partners is of prime importance.

    Option 2: Purchase plus long-term Rental

    This method allows foreign nationals to purchase real property and register the Title Deed in the name of a Cambodian citizen.

    The foreigner and the Cambodian then enter into a long-term rental agreement by which the Cambodian citizen leases the house back again to the foreigner. Lease intervals can last up to 99 years.

    The problem with this method, and why it has few takers, is the psychological attachment to freehold ‘ownership’. Most foreign investors expect full ‘ownership’ of something they buy. The principal of renting back property that has already been purchased is an anathema to most foreigners.

    However, correct drafting of the terms of the property holding and lease arrangements make this a reasonably secure method of controlling real property in Cambodia. Under this method, the foreigner may sell the property at any time and keep 100% of the revenue from the sale.

    The Cambodian citizen is not permitted to disagree with or obstruct the sale. The foreigner retains the original copy of the new Title Deed as a security precaution: sale of real property is impossible without the initial duplicate of the Name Deed.

    Although foreigner can sell the house anytime, the Cambodian citizen’s signature or thumbprint is normally needed before any sale may take place. An excellent working romantic relationship between both celebrations is therefore extremely important.

    Choice 3: Registering True Real estate with a Cambodian Citizen

    This method is quite similar to Option 2 but requires 100% rely upon the Cambodian citizen.

    Foreign nationals have legal rights, beneath the Kingdom’s Statutes, to select a Cambodian in whose name their Name Deed is authorized. That’s, a foreign nationwide can purchase real estate and register the bought real estate in the name of the Cambodian citizen.

    Once the Name Deed is used in the Cambodian citizen, the foreigner retains possession of the brand new Name Deed. That is a protection precaution that protects the foreigner’s passions by avoiding the Cambodian citizen offering the property or property: product sales are difficult without the Name Deed. Transferring the Cambodian’s privileges to the foreigner with a Mortgage or Lease Contract provides additional protection for the foreigner’s investment.

    Copies of the Name Deed and any Home loan or Lease Agreements should be registered with the Division of Provincial Property Management, Urban Preparation and Construction, along with the appropriate District and central federal government departments that deal with property registry. Most of all, a duplicate of the Property Name and any Mortgage or Lease Agreements must be lodged with the Cadastral Land Registry Office.

    The Cambodian citizen in whose name the Title is registered does not need to be resident in Cambodia. For example, the Title can be registered with a Cambodian citizen living in the USA or Australia. The Cambodian citizen must be able to prove Cambodian nationality.

    Option 4: Marriage to a Cambodian National

    Foreign buyers who are married to a Cambodian national can register real property using the name of their wife/husband on the Title Deed. It is also possible for a foreign national married to a Cambodian citizen and resident in the country for a long period to apply for Cambodian citizenship.

    In the event of citizenship being granted, Cambodian Law holds that land can be registered in the names of both parties. Neither partner can subsequently sell the land or property without mutual agreement.

    In the event of divorce or separation, division of the land or property would depend on the conditions under which divorce or separation occurs, and your choice of any court ruling or arbitration associated with the divorce. It is way to obtain conflict between your divorcees.

    Choice 5: Acquisition of Honorary Cambodian Citizenship

    A foreigner could be granted honorary Cambodian citizenship if she or he donates a substantial amount of cash to the Royal Federal government of Cambodia for the reasons of benefiting the folks of Cambodia.

    Foreigners who’ve made a particular influence or rendered exceptional help the Kingdom can also be granted this honor in reputation of their knowledge or altruism.

    One consequence to be granted honorary citizenship is that it becomes easy for an international national to get a 100% correct of ownership more than real home purchased within the Kingdom.

    This arrangement is acknowledged by the Ministry of Land Administration, Urban Planning and Construction for the Kingdom of Cambodia, and by the Royal Government.

    Honorary citizenship is certainly acknowledged by the Royal Federal government of Cambodia as the best method of purchasing genuine property within the Kingdom nonetheless it will not affect the foreigner’s first nationality or citizenship at all.

    What specifically are the taxes involve to possess a house in Cambodia?

    Below is a listing of taxes and costs that the dog owner or landlord should observe when preparation to buy or sell property in Cambodia.

    Rental Tax : 10% (locals) or 14% (foreigners) per year on gross rent
    Property Tax : 0.1% per year (value dependant on Immovable Property Evaluation Committee)
    Transfer Tax : 4% of property worth levied in all ‘hard name’ property or home transfers (transfer of name)
    VAT : 10% VAT is applied on product sales of buildings

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