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Guide to Foreign Property Ownership in Cambodia – How Foreigners Can Legally Own Property in Cambodia Without Breaking Any Rules!

Guide to Foreign Property Ownership in Cambodia - How Foreigners Can Legally Own Property in Cambodia Without Breaking Any Rules!

Avoid Costly Mistakes—Here’s How to Secure Condos and Long-Term Leases in Cambodia Like a Pro!

Want to buy property in Cambodia as a foreigner? You need to know what’s allowed and what’s not. Our Guide to Foreign Property Ownership in Cambodia cuts through the confusion. Foreigners can own condos (but not land or ground-floor units) in Cambodia. With high rental yields around 7-8% and prices much lower than in Bangkok or Ho Chi Minh City, Cambodia offers great value for investors who understand the rules.

Here is Your No-Nonsense Guide to Foreign Property Ownership in Cambodia: Buy Smart, Stay Legal

Key Takeaways

  1. Condos only, please: Cambodian law lets foreigners own condos, but not land or ground-floor units. This comes straight from Article 44 of the Constitution.
  2. The 70% rule: No more than 70% of units in any building can be owned by foreigners. This keeps a good mix of local and foreign owners.
  3. Solid rental returns: Cambodian properties offer rental yields of 7-8%, much higher than Thailand (6%) or Vietnam (3%). Your money works harder here.
  4. Market recovery happening: After a few slow years, the property market is coming back. Now may be a great time to buy as prices are stable but likely to rise.
  5. Tax breaks for 2025: The government has added tax breaks for property transfers in 2025, including full stamp duty exemptions for properties up to $210,000.
  6. Trust structures growing: The 2019 Trust Law gives foreigners a safer way to control land or houses (though not directly own them).
  7. Quality matters: Skip the cheap stuff. Focus on reputable developers with good track records to avoid construction and title issues.

What Can Foreigners Own in Cambodia?

Let’s be clear about what you can and can’t own as a foreigner in Cambodia. The laws here are different from what you might be used to back home.

1. Condominiums: Your Best Bet

Foreigners can legally own condominium units in Cambodia, thanks to the Foreign Ownership Property Law of 2010. This law made a big change to how foreigners can invest in Cambodian real estate.

There are some rules you need to know:

  • You can only own units above the ground floor
  • Foreign ownership in any building is capped at 70% of the total units
  • The building must be registered with a strata title
  • Property must be in buildings constructed from 2010 onwards
  • Buildings must be located more than 30km from any border

This means condos are the easiest and safest option for foreigners. You get a hard title registered at the national cadastral office, just like a local would.

For example, UC88 Condos in Phnom Penh offer exactly this kind of opportunity – modern units above ground level in a building designed with foreign buyers in mind.

2. What About Land and Houses?

Let’s address the big question: Can foreigners own land in Cambodia?

The short answer is no. Article 44 of the Cambodian Constitution says only Cambodian citizens or entities can own land. This is a firm rule that isn’t likely to change soon.

But don’t worry – there are legal ways around this:

OptionHow It WorksProsCons
Long-term leaseLease for 15-50 years, renewableSimple, relatively low costNot ownership, depends on landlord relationship
Local companyForm a company (51% Cambodian-owned)More control, can own multiple propertiesAnnual filings needed, requires trustworthy partner
Nominee structureProperty held by Cambodian citizen with side contractsCommon practice, flexibleLegal gray area, depends entirely on trust
TrustLicensed trustee holds title for your benefitLegally recognized, more secureNewer option, higher setup costs

Many foreign buyers use these methods to control landed property. For instance, some expats in Siem Reap use long leases to secure villas or houses near Angkor Wat.

Cambodia Real Estate Market in 2025: What to Expect

The Cambodia property market in 2025 is in recovery mode. After COVID-19 slowed things down, we’re seeing steady growth again.

Market Recovery Signs

Property prices are stabilizing. The residential property price index rose by a modest 0.45% in 2024, after falling 2.95% in 2023. This suggests the market has found its bottom and is ready to climb again.

Prime Minister Hun Manet recently said the market is showing “real growth” based on “clear foundations.” What’s interesting is that about 98% of current purchases are for actual living, not just speculation. This creates a more stable market.

Regional Comparisons

Cambodia’s property market offers some advantages compared to neighbors:

  • Lower entry prices: Condos in Phnom Penh cost around $2,700 per square meter for high-end units. Similar units in Bangkok might cost $4,000+ and in Ho Chi Minh City $3,000-5,000.
  • Higher rental yields: Cambodia offers gross rental yields of 7-8%, compared to Thailand (6%) and Vietnam (3%).
  • USD-based market: Cambodia uses US dollars for most real estate transactions, reducing currency risk.

This combination makes Cambodia worth looking at for investors seeking value.

Rental Yields: Cambodia offers exceptionally high rental yields compared to its neighbors, a major draw for investors:

Metric (2024–25) Cambodia (Phnom Penh) Thailand (Bangkok) Vietnam (HCMC)
Gross Rental Yield (avg) ~6.5–7% (PP apartments) ~6.2% (Bangkok avg) ~3.2% (HCMC avg)
Condo Price (High-end) ~$2,700 per sqm ~$4,000+ per sqm (est. mid-high) ~$3,000–$5,000 per sqm
Annual Price Change (2024) +0.45% (nationwide) +3–5% (Bangkok, est.) +… (HCMC ~0% in 2024, est.)
Foreign Ownership Rule 70% of condo building, no land 49% of condo building, no land freehold 30% of condo units, 50-year lease land

Hot Spots for Foreign Property Investment

Where should you buy? Let’s look at the main areas for foreign property investment in Cambodia.

1. Phnom Penh: The Capital’s Appeal

Phnom Penh property market continues to be the main focus for foreign buyers. Key areas include:

  • BKK1: The prime expat area with high-end developments like Picasso 2 Condos, which offer luxury living in Cambodia’s most prestigious neighborhood.
  • Tonle Bassac: Known for upscale developments and proximity to embassies.
  • Chamkarmon District: Contains both BKK1 and Tonle Bassac, dominating market share.
  • Sen Sok: An up-and-coming area with more affordable options.
  • Chroy Changvar: Developing area across the river with new projects.

Properties like Le Conde Phnom Penh show the type of luxury developments now available in the capital.

2. Siem Reap: Tourism Drives Growth

Siem Reap, gateway to Angkor Wat, is seeing renewed interest as tourism returns. The property market here is different:

  • Fewer condos due to low-rise zoning near heritage sites
  • More boutique apartment projects and villas
  • Property prices rose 5-7% in 2024
  • A new international airport is driving optimism

For those wanting a tourism-focused investment, Siem Reap offers interesting options, though resale might be slower than in Phnom Penh.

3. Sihanoukville and Coastal Areas

Coastal areas have had a wild ride. After a boom and bust cycle related to Chinese investment and gambling restrictions, there are signs of stabilization:

  • Prices near revived casino areas rose 5-7% in 2024
  • More balanced development is emerging
  • The Phnom Penh-Sihanoukville Expressway has cut travel time to 2 hours
  • Chinese investors are gradually returning

If you’re risk-tolerant, coastal areas could offer good value entry points now.

Step-by-Step Process to Buy Property in Cambodia

Ready to buy? Here’s how to do it right.

1. Find the Right Property

Start by working with a reputable agency like DaBest Properties who can show you legitimate options that match your goals. Their selection of condos in prime areas of Phnom Penh offers a good starting point.

Look for properties from established developers with good track records. For example, check out this 1-bedroom promotion condo in a prime Phnom Penh location.

2. Due Diligence is Critical

Before putting any money down:

  • Verify the title: Make sure the property has a proper hard title and the seller is the legitimate owner.
  • Check for liens: Ensure there are no mortgages or legal disputes attached to the property.
  • Inspect the property: Physically check the unit or have a professional do it.
  • Research the developer: For new projects, investigate the developer’s track record.

This might cost a few hundred dollars but is money well spent. Many agencies offer due diligence services.

3. Negotiate and Structure the Deal

Once you’ve found a good property and done your checks, it’s time to negotiate. The current market favors buyers, so don’t be afraid to ask for:

  • Price discounts (5-10% is often possible)
  • Furniture packages or upgrades
  • Flexible payment terms

For larger units like this 3-bedroom Picasso 2 condo, negotiation can save significant amounts.

4. Payment and Transfer Process

The typical process includes:

  1. Sign a reservation agreement with a small deposit (often $2,000-5,000)
  2. Sign a sale-purchase agreement with a larger deposit (often 30%)
  3. Pay the balance according to the payment schedule (could be on completion or in installments)
  4. Complete the transfer at the land office

Take advantage of 2025 tax incentives – properties up to $210,000 get full stamp duty exemptions this year.

5. Register Your Ownership

For condos, you’ll need to register your ownership with the relevant authorities. This typically requires:

  • Your passport
  • Visa (not always required)
  • Sale-purchase agreement
  • Receipt of payments
  • Fees for registration (usually 4% of the property value)

Your agent should help with this process. Make sure you get your hard title properly registered.

Legal Structures for Land and Villa Ownership

If you’re set on owning land or a villa rather than a condo, here are your options in more detail:

1. Long-term Leases (15-50 Years)

  • A registered lease gives you control of the property for decades.
  • Can be renewed when it expires.
  • Registration with the Land Ministry gives you legal rights to occupy and even resell the remaining lease term.
  • Costs include annual rent plus registration fees.

2. Cambodian Company Structure

  • Set up a company with at least 51% Cambodian ownership.
  • The company owns the land, and you control the company.
  • Requires ongoing compliance with business regulations.
  • More complex but offers good control.

3. Nominee Arrangement

  • A Cambodian citizen holds the title in their name.
  • You sign private agreements (loan agreements, mortgages, powers of attorney) to secure your interests.
  • Common but carries risk – depends entirely on trust.
  • Least recommended option for significant investments.

4. Trust Structure

  • A licensed trustee (Cambodian trust company) holds the title for your benefit.
  • The 2019 Trust Law provides legal recognition of your beneficial ownership.
  • More secure than nominee arrangements.
  • Becoming increasingly popular for serious investors.

Investment Analysis: Is Cambodia Worth It?

Let’s look at the numbers to see if Cambodia makes sense as an investment.

Rental Yields and ROI

Gross rental yields in Cambodia average 7.4% nationally and about 7% in Phnom Penh. This is impressive compared to:

  • Thailand: 6.2% average yield
  • Vietnam: 3.2% average yield
  • Many western countries: 3-5% average yield

A $100,000 condo in Phnom Penh might generate around $7,000 in annual rental income before expenses. After costs like management fees and maintenance, net yields of 5-6% are realistic.

Capital Growth Potential

While recent years saw flat or slightly declining prices, the long-term outlook is positive:

  • Economic growth of 5.5%+ annually supports real estate values
  • Urban migration continues as Cambodia develops
  • Limited new supply as developers have slowed launches
  • Tourism recovery (expecting 7.5 million tourists in 2025)

Experts expect modest price growth to resume by 2026-2027, with annual appreciation of 2-5% possible once the current inventory is absorbed.

Risk Factors to Consider

No investment is without risk. In Cambodia, watch out for:

  • Title issues: Not all properties have clear titles. Stick with hard-titled properties.
  • Construction quality: Standards vary widely. Inspect carefully and buy from reputable developers.
  • Market liquidity: Selling can take time, especially for higher-priced units.
  • Political risk: While Cambodia is stable, policy changes could affect property rights.
  • Oversupply in some segments: Phnom Penh condos are in oversupply, with occupancy around 58%.

Taxation and Costs

Understanding the costs of buying and owning property in Cambodia will help you plan your investment.

Purchase Costs

When buying property, expect to pay:

  • Transfer tax: 4% of property value (though exemptions apply in 2025)
  • VAT: 10% for new properties from developers
  • Registration fees: Small administrative costs
  • Legal fees: $500-2,000 depending on complexity

Annual Costs

Ongoing expenses include:

  • Property tax: Minimal for most properties (less than $100/year for typical homes)
  • Management fees: For condos, usually $0.50-1 per square meter per month
  • Maintenance: Budget 1-2% of property value annually
  • Income tax: 20% on rental income (though enforcement varies)

2025 Tax Incentives

The government has introduced special tax breaks for 2025:

  • Full stamp duty exemptions for properties up to $210,000
  • Partial exemptions for higher-valued properties
  • Applies to both existing property transfers and new purchases

These incentives make 2025 a good time to buy.

Case Studies: Successful Foreign Investors

Let’s look at a few examples of foreigners who’ve successfully invested in Cambodian property.

Case Study 1: Phnom Penh Condo

An investor from the UK bought a one-bedroom condo in BKK1 for $120,000 in 2018. He rents it to an expat for $800/month, giving him an 8% gross yield. The property’s value dipped during COVID but has stabilized now. He manages it remotely with a local agent taking 10% of the rent.

Case Study 2: Siem Reap Villa Lease

An investor from Australia wanted a house, not a condo. She secured a 30-year lease on a villa near Siem Reap for $80,000 plus $1,000 annual rent. She lives there part-time and rents it out on Airbnb when away, covering her costs and making a small profit.

Case Study 3: Investment Portfolio

An investor from Singapore built a portfolio of five affordable condos in different Phnom Penh locations between 2015-2020, total investment around $400,000. He maintains 85% occupancy across his portfolio with a mix of expat and local tenants, generating around $2,000 monthly net income.

Watch this video tour of properties in Phnom Penh to see the kind of properties these investors are buying.

Common Mistakes to Avoid

Learn from others’ errors so you don’t repeat them.

1. Skipping Due Diligence

Never buy without proper checks. Make sure:

  • The title is clean and registered
  • The seller is the real owner
  • There are no hidden debts or claims
  • The building has proper permits

2. Buying for Short-Term Flipping

Cambodia is not a flip market right now. Buy with at least a 5-year horizon. The days of quick double-digit gains are over for now.

3. Using Informal Nominee Arrangements

If you want land or a house, don’t rely on handshake deals with a local nominee. Use proper legal structures with written agreements.

4. Ignoring Location Fundamentals

Don’t buy just because it’s cheap. Consider:

  • Infrastructure quality
  • Flood risk
  • Access to amenities
  • Target tenant pool
  • Future development plans

5. Overlooking Management Issues

If you’re not living in Cambodia, who will manage your property? Plan for:

  • Finding tenants
  • Collecting rent
  • Maintenance issues
  • Annual tax filings

Good management companies exist but add 10-15% to your costs.

Exclusive Properties Available Now

Let’s look at some excellent properties currently available through DaBest Properties:

UC88 Condos – Prime Phnom Penh Location

These modern condos offer excellent value in a top location:

Picasso 2 – Luxury Living in BKK1

For those seeking luxury in Phnom Penh’s most prestigious area:

Le Conde – Elegant Urban Living

  • Luxurious 2-bedroom condos with contemporary design
  • Quality construction and finishes
  • Great central location
  • Excellent rental potential
  • Limited units available – selling fast

These properties are selling quickly as market sentiment improves. Contact DaBest Properties to arrange a viewing before they’re gone.

Final Thoughts on Buying Property in Cambodia

Cambodia offers good value for property investors who understand the rules. Stick with condos for simplicity, or use proper legal structures for land or houses. Focus on quality properties in good locations for the best results.

The next 1-2 years will likely remain a buyer’s market with negotiating power, but prices should start rising again by 2026-2027. Now might be an ideal time to enter the market.

Ready to take the next step? Contact DaBest Properties for expert guidance on finding your perfect Cambodian property. Their team knows the market inside out and can help you avoid the pitfalls while finding the best opportunities.

Useful Resources

  1. Cambodian Law on Foreign Ownership – Current legal framework from BNG Legal
  2. Cambodia Property Guide – Market analysis and price trends
  3. Cambodia Investor Visa Information – Official government visa regulations

These resources will help you make smart choices when buying property in Cambodia. Always work with trusted professionals and get proper legal advice for your specific situation.

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