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Everything you need to know before buying real estate is included in our Cambodia Property Pack
Foreigners cannot directly own land in Cambodia, but they can legally purchase strata-titled condominiums above ground floor and access land through various legal structures.
As of June 2025, Cambodia's property market continues to attract foreign investors despite ownership restrictions, with condos in Phnom Penh, Siem Reap, and Sihanoukville showing strong growth potential. The key is understanding the legal frameworks available and working with qualified local professionals to navigate the complex regulatory environment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cambodia, based on reliable facts and data, not opinions or rumors.
Foreigners can purchase strata-titled condos above ground floor but cannot directly own land in Cambodia due to constitutional restrictions.
Legal alternatives include land-holding companies (51% Cambodian ownership), long-term leases up to 70 years, and trust structures established since 2019.
| Ownership Option | Foreigner Eligibility | Key Requirements |
|---|---|---|
| Direct Land Ownership | Not Permitted | Cambodian citizenship required |
| Strata-Titled Condos | Yes (above ground floor) | Maximum 70% foreign ownership per building |
| Land-Holding Company | Yes | 51% Cambodian ownership, legal agreements |
| Long-Term Lease | Yes | 50-70 year terms, renewable |
| Trust Structure | Yes | Cambodian trustee, legal documentation |
| Nominee Structure | Risky | Trusted Cambodian partner, side agreements |
| Citizenship Investment | Yes | $300,000+ investment, complex process |
What types of land can foreigners legally buy in Cambodia, and what restrictions should they be aware of?
Foreigners cannot directly own land in Cambodia under Article 44 of the Cambodian Constitution and the 2001 Land Law.
The only property type foreigners can directly own is strata-titled condominiums above ground floor level, with a maximum of 70% foreign ownership allowed per registered co-owned building. Ground-floor units, villas, townhouses, and any property with direct land contact cannot be directly owned by foreigners.
As we reach mid-2025, these restrictions remain firmly in place, with no indication of policy changes that would allow direct foreign land ownership. The government maintains this position to preserve land sovereignty and prevent excessive foreign control over Cambodian territory.
Foreign buyers must focus exclusively on upper-floor strata-titled units in registered buildings or pursue alternative legal structures like land-holding companies or long-term leases to access land-based properties.
It's something we develop in our Cambodia property pack.
Is it possible for a foreigner to fully own land in Cambodia, or do you need a local partner, lease, or other legal structure?
Full land ownership by foreigners is impossible unless they acquire Cambodian citizenship, which requires significant investment and a complex naturalization process.
Four main legal alternatives exist for accessing land ownership rights. First, establish a Cambodian land-holding company with at least 51% Cambodian ownership, where foreigners can hold up to 49% and use Power of Attorney agreements to secure operational control. Second, negotiate long-term leases for 50-70 years with renewal options. Third, utilize nominee structures where a trusted Cambodian citizen holds the land title with side agreements protecting the foreigner's interests, though this carries significant legal risks. Fourth, since 2019, trust structures allow Cambodian trustees to hold land for the benefit of foreign beneficiaries.
Each structure requires careful legal documentation and carries distinct risks. Land-holding companies offer the most security but require ongoing compliance with corporate regulations. Long-term leases provide clear usage rights but no ownership. Nominee structures are the riskiest option, as the Cambodian partner technically owns the property outright.
Expert local legal counsel is essential for any of these arrangements, as improper structuring can result in complete loss of investment.
Are there any official paths to permanent residency or citizenship that make land ownership easier for foreigners?
Cambodia offers the "Cambodia My Second Home" (CM2H) program, which grants up to 10-year renewable visas with a minimum $50,000 investment in approved real estate projects.
However, the CM2H program does not grant land ownership rights - it only allows property ownership above ground floor level, the same as other foreigners. The program primarily provides visa convenience rather than expanded property rights.
Citizenship by investment is theoretically possible, typically requiring $300,000+ investment, which then allows full land ownership identical to Cambodian citizens. This process is extremely costly, complex, time-consuming, and rarely pursued by most foreign investors due to the substantial financial commitment and bureaucratic complexity involved.
As of June 2025, no simplified pathways exist for foreigners to gain land ownership rights without either full citizenship or the legal structures mentioned above.
Which areas or provinces in Cambodia are most popular with foreigners buying land, and why?
Phnom Penh remains the top destination for foreign property investment, accounting for approximately 60% of foreign-owned strata-titled units as of mid-2025.
| Location | Primary Appeal | Investment Focus |
|---|---|---|
| Phnom Penh | Capital city, business hub | Luxury condos, commercial spaces, high rental yields |
| Siem Reap | Tourism center, Angkor Wat | Hospitality investments, holiday properties |
| Sihanoukville | Coastal location, beaches | Beachfront resorts, luxury apartments |
| Kampot & Kep | Relaxed lifestyle, expat community | Riverside properties, retirement homes |
| Bavet | Border trade, industrial growth | Commercial properties, logistics facilities |
| Battambang | Agricultural hub, growing economy | Mixed-use developments, local businesses |
| Koh Kong | Emerging beach destination | Tourism infrastructure, eco-resorts |
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What is the complete step-by-step process to legally purchase land in Cambodia as a foreigner?
The legal purchase process for foreigners focuses exclusively on strata-titled condominiums above ground floor, as direct land purchase is prohibited.
Step 1: Choose an eligible property type - only strata-titled condos above ground floor qualify for foreign ownership. Step 2: Conduct thorough due diligence by verifying the hard title or strata title, checking for liens or encumbrances, inspecting the property condition, and researching the developer's track record. Step 3: Reserve the unit by signing a reservation agreement and paying a small deposit, typically $1,000-$5,000.
Step 4: Execute the Sale & Purchase Agreement (SPA), pay the required deposit of 10-30%, and provide necessary documents including passport, visa, and proof of payment. Step 5: Complete the transfer and registration process by paying the 4% transfer tax and registering ownership with the Ministry of Land Management, Urban Planning and Construction (MLMUPC). Step 6: Receive the official strata title deed in your name. Step 7: Maintain ongoing compliance by paying annual property tax and declaring rental income if leasing the property.
The entire process typically takes 30-60 days from SPA execution to title transfer, assuming all documentation is properly prepared.
What documents, permits, and approvals are required to buy land in Cambodia, and who handles them?
Foreign buyers need specific personal and property documents to complete purchases legally in Cambodia.
Personal documents required include a valid passport, current visa (tourist or business), and marriage certificate if applicable for spousal considerations. Property documents must include the hard title or strata title deed, executed Sale & Purchase Agreement, and bank transfer proof of payment.
For strata-titled condos, registration with MLMUPC is mandatory and typically handled by the buyer's lawyer or the developer. For land-holding company structures, company registration with the Ministry of Commerce is required, along with ongoing corporate compliance. Long-term lease agreements must be registered with local authorities and notarized properly.
The buyer's lawyer typically manages document preparation and submission, while real estate agents assist with initial paperwork and developer coordination. Developers often facilitate the registration process for new developments, but independent legal verification is strongly recommended.
Processing times vary from 2-4 weeks for straightforward condo purchases to 2-3 months for complex company structures.
Can you purchase land in Cambodia without being physically present in the country, and if so, how?
Yes, foreigners can complete property purchases remotely through Power of Attorney (POA) arrangements with trusted representatives in Cambodia.
The POA must be specific to the property transaction, properly notarized, and grant clear authority for the representative to execute all necessary documents and complete registration procedures. Most buyers use qualified Cambodian lawyers as their POA representatives due to their legal expertise and professional obligations.
Remote purchase procedures include document preparation and notarization in the buyer's home country, POA transmission to the Cambodian representative, property inspection and due diligence conducted by the representative, execution of all purchase documents by the POA holder, and completion of registration and title transfer processes.
Critical precautions include ensuring the POA is specific and limited to the transaction, selecting a reputable and licensed representative, maintaining regular communication throughout the process, and requiring detailed documentation of all actions taken on your behalf.
While remote purchases are possible, first-time buyers are often advised to visit Cambodia personally to understand the market and establish trusted local relationships.
What are the total taxes, government fees, and legal costs involved in buying and owning land in Cambodia?
Property purchase and ownership in Cambodia involves several taxes and fees that foreign buyers must budget for carefully.
| Cost Type | Rate/Amount | When Paid |
|---|---|---|
| Transfer Tax (Stamp Duty) | 4% of property value (exempt first $210,000 in 2025) | At purchase |
| Stamp Duty | $100-$200 | At registration |
| Annual Property Tax | 0.1% on value over $25,000 | Annually |
| Capital Gains Tax | 20% (effective from January 2025) | At sale |
| Legal Fees | $1,000-$2,000 | At purchase |
| Real Estate Agent Fees | 1-3% commission (usually seller pays) | At sale |
| Appraisal Fees | $200-$500 | If required |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Is it common or even possible for foreigners to get a mortgage in Cambodia for land, and under what terms and interest rates?
Mortgages for foreigners are possible but limited, with significantly stricter terms compared to local buyers.
Cambodian banks typically require 30-70% down payments from foreign borrowers, compared to 10-30% for locals. Interest rates range from 7-10% annually, and loan terms are shorter, usually 10-15 years versus 20-30 years for Cambodian citizens.
Additional requirements often include Cambodian co-borrowers or guarantors, additional collateral beyond the purchased property, higher income verification standards, and proof of long-term visa status or residence. Major local banks like ABA Bank, Canadia Bank, and ACLEDA Bank offer foreign mortgage products, but approval rates are lower and processing times longer.
Many foreign buyers opt for cash purchases due to these lending restrictions, either bringing funds from overseas or securing financing in their home countries secured against other assets.
As of June 2025, mortgage availability for foreigners remains limited but stable, with no significant policy changes expected in the near term.
Can you buy land with cash, and are there any benefits or risks to doing it that way?
Cash purchases are not only allowed but extremely common among foreign buyers in Cambodia, representing approximately 70% of foreign transactions as of mid-2025.
Benefits include faster transaction completion (often within 30 days), no financing complications or bank approval delays, stronger negotiating position with sellers, and elimination of interest costs and loan fees. Cash buyers can often secure 5-10% discounts on purchase prices due to the certainty and speed of closing.
Risks primarily involve anti-money laundering concerns, as large cash transactions may trigger government scrutiny and require extensive documentation of fund sources. All cash payments must be conducted through traceable bank transfers rather than physical cash to ensure compliance with banking regulations.
Buyers must prepare proper documentation showing legitimate fund sources, such as bank statements, property sale proceeds, inheritance documentation, or business income records. Wire transfer documentation and currency exchange records are essential for regulatory compliance.
Foreign buyers should always use reputable banks for transfers and maintain comprehensive financial records to avoid any legal complications during or after the purchase process.
What are the most common mistakes foreigners make when buying land in Cambodia, and how can you avoid them?
The most frequent and costly mistake is inadequate due diligence on property titles, developers, and legal structures.
- Skipping Title Verification: Failing to confirm clear hard title or strata title through official channels. Always verify titles directly with MLMUPC and check for liens or encumbrances.
- Trusting Unreliable Nominees: Using unknown or untrusted Cambodians for nominee structures without proper legal agreements. Only work with vetted, licensed professionals with established track records.
- Avoiding Legal Counsel: Attempting purchases without qualified Cambodian lawyers. Always hire licensed local attorneys who specialize in foreign property transactions.
- Misunderstanding Legal Structures: Failing to properly establish company, trust, or lease arrangements with appropriate documentation. Ensure all structures are properly registered and legally compliant.
- Ignoring Tax Obligations: Missing annual property tax payments or misunderstanding capital gains tax implications. Maintain proper tax compliance and budgeting for ongoing obligations.
Additional common errors include rushing transactions without market research, failing to inspect properties thoroughly, and not budgeting for all associated costs including taxes, fees, and ongoing maintenance.
Prevention requires working exclusively with reputable legal and real estate professionals, conducting comprehensive due diligence, understanding all legal structures and obligations before committing, and budgeting conservatively for all transaction and ownership costs.
It's something we develop in our Cambodia property pack.
What is the long-term outlook for Cambodia's land market, and what types of land investments are seen as the most promising?
Cambodia's property market is projected to grow 5-10% annually through 2025-2030, driven by continued urbanization, tourism recovery, and infrastructure development including the new Phnom Penh-Sihanoukville expressway.
Most promising investment categories include strata-titled condominiums in prime Phnom Penh locations, which offer the easiest foreign ownership structure and strong rental demand from business travelers and expatriates. Commercial units in co-owned buildings, particularly offices and retail spaces in central business districts, benefit from growing business activity and limited supply.
Long-term leases in growth corridors show excellent potential, especially along the Phnom Penh-Ho Chi Minh City corridor and in emerging tourism destinations like Koh Kong and Kampot. Bavet properties benefit from increasing cross-border trade with Vietnam and industrial development.
Key risks include potential regulatory changes affecting foreign ownership, political stability concerns, and overbuilding in certain markets like Sihanoukville where Chinese investment has created oversupply in some segments.
Smart investors focus on established areas with proven demand, maintain diversified portfolios across property types and locations, and work with experienced local partners who understand market dynamics and regulatory requirements.
It's something we develop in our Cambodia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buying land in Cambodia as a foreigner requires navigating complex legal structures since direct ownership is prohibited by law.
Success depends on choosing the right legal framework—whether strata-titled condos, land-holding companies, or long-term leases—and working with qualified local professionals throughout the process.
Sources
- Emerhub - Buying Property in Cambodia as a Foreigner
- Cambodia Development Council - Land Laws and Regulations
- IPS Cambodia - Foreign Land Ownership Guide
- BambooRoutes - Cambodia Real Estate Tips for Foreigners
- Cambodia Investment Review - 2025 Real Estate Investment Guide
- BambooRoutes - Can Foreigners Buy Property in Cambodia
- Khmer Legal - Foreign Ownership of Land in Cambodia
- CBRE Cambodia - How to Buy Property in Cambodia