What's the purchase process to buy a property in Cambodia?

Authored by the expert who managed and guided the team behind the Cambodia Property Pack

Everything you need to know before buying real estate is included in our Cambodia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cambodia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Cambodian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Phnom Penh, Siem Reap, and Sihanoukville. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How can a foreigner legally own or purchase property in Cambodia?

Foreigners can legally purchase specific types of property in Cambodia, but direct land ownership remains constitutionally prohibited for non-Cambodians.

The Cambodian constitution restricts land ownership to Cambodian citizens or companies with at least 51% Khmer ownership. However, the 2010 Foreign Ownership Law created pathways for foreigners to own certain property types through strata-titled ownership structures.

Legal ownership options include condominiums above ground floor, commercial units in eligible buildings, and strata-titled apartments in co-owned developments completed after 2010. These properties must be registered with proper strata titles and comply with the 70% foreign ownership cap per building. Properties cannot be located within 30 kilometers of national borders.

For landed properties like houses or villas, foreigners must use alternative legal structures such as long-term leases (50-99 years), Cambodian company ownership, or nominee arrangements, though each carries different risk levels and legal complexities.

It's something we develop in our Cambodia property pack.

What types of property can foreigners actually buy, such as condos, land, or houses?

Foreigners can directly purchase condominiums above ground floor, commercial units, and strata-titled apartments, but cannot buy land or houses that touch the ground.

Eligible properties include condominiums in co-owned buildings with strata titles registered after 2010, provided they are above the ground floor. Office spaces and retail units in qualifying strata-titled buildings fall under the same ownership rules. All apartments must have strata titles - not all apartment buildings qualify for foreign ownership.

Prohibited properties include all ground-floor units that directly touch land, standalone houses, villas, landed properties, and "borey" gated community developments. Any property that comes with land ownership rights remains off-limits for direct foreign purchase.

The key distinction lies in the property classification and title type. Strata-titled units in multi-story buildings allow foreign ownership of airspace rights above ground level, while any property involving land ownership requires alternative legal structures or remains completely restricted.

What are the key restrictions or conditions on foreign property ownership?

Foreign property ownership in Cambodia operates under strict conditions including floor restrictions, ownership caps, geographic limitations, and title requirements.

Restriction Type	Specific Requirement	Consequence of Violation
Floor Level	Above ground floor only	Purchase invalid/illegal
Ownership Cap	Maximum 70% foreign ownership per building	Cannot exceed quota
Border Zone	Outside 30km national border area	Purchase prohibited
Title Type	Strata title registration required	No legal ownership rights
Building Age	Completed after 2010	Foreign ownership not permitted
Property Registration	Registered with Ministry of Land Management	Unenforceable ownership
Company Structure	51% Cambodian ownership minimum for land	Illegal foreign control

What are the different legal structures people use to acquire property if direct ownership isn't possible?

When direct ownership isn't available, foreigners use four main legal structures: long-term leases, Cambodian companies, nominee arrangements, and trust structures.

Long-term leases offer the safest alternative for landed properties, providing 50-99 year terms that can be registered with authorities for strong legal protection. These leases are renewable and provide control over the property without ownership, making them bankable and transferable. Lease agreements should include clear renewal terms and registration with local authorities.

Cambodian company structures require establishing a company with at least 51% Cambodian ownership, which can then legally own land. This method needs careful management to ensure compliance with ownership laws and avoid disputes with local partners. The foreign investor maintains operational control through management agreements and shareholding structures.

Nominee arrangements involve a Cambodian citizen holding property in trust for the foreigner. This structure carries significant legal risks as it's not officially recognized by Cambodian law and exposes buyers to potential disputes or loss of investment. Most legal experts advise against this approach.

Trust structures have become more regulated and common recently, offering greater legal protection than nominee arrangements but involving higher setup costs and requiring proper legal establishment with qualified trustees.

What is the typical step-by-step process from making an offer to receiving the property title?

1. **Initial Due Diligence and Property Verification** - Verify property title (hard title, strata title) authenticity - Check seller's legal credentials and ownership rights - Confirm developer's legal status and project approvals - Review building completion certificates and strata registration2. **Offer Submission and Negotiation** - Submit written offer with price and terms - Negotiate purchase price and payment schedule - Sign reservation agreement with refundable deposit - Ensure deposit held by reputable third party or escrow3. **Legal Review and Contract Preparation** - Engage qualified lawyer for title and background search - Review property history for debts and encumbrances - Prepare formal Sale & Purchase Agreement - Verify all documentation and legal compliance4. **Contract Execution and Payment** - Sign official purchase contract with verified terms - Pay agreed deposit (typically 10-30% of purchase price) - Arrange financing or full payment schedule - Complete VAT and transfer tax calculations5. **Government Registration and Transfer** - Submit paperwork to Ministry of Land Management - Pay 4% transfer tax and applicable VAT (10% for new units) - Process official property registration - Obtain new title certificate in buyer's name6. **Final Settlement and Handover** - Complete final payment and fee settlements - Receive property keys and handover documentation - Register utilities and property management - File required tax registrations for future obligations

What kind of due diligence should I do before buying, especially when it comes to land titles and ownership records?

Comprehensive due diligence requires verifying title authenticity, ownership history, property legality, and developer credentials through multiple official channels.

Title verification involves confirming the property holds either a hard title or strata title registered with the Ministry of Land Management. Request original title documents and verify them directly with government offices rather than relying on copies. Check that strata titles are properly registered and that the building meets foreign ownership eligibility requirements including completion after 2010.

Property history research should uncover any outstanding debts, mortgages, or legal encumbrances attached to the property. Review ownership transfer records to ensure clear chain of title and identify any disputes or irregularities. Verify that current taxes and fees are paid up to date.

Developer and seller legitimacy checks involve researching company registration, business licenses, and track record in Cambodia. Verify the seller's legal authority to sell the property and confirm they hold clear ownership rights. For new developments, check construction permits, completion certificates, and strata registration status.

Legal compliance verification includes confirming the property meets all foreign ownership requirements, zoning laws, and building codes. Engage independent legal counsel with Cambodia real estate expertise rather than relying on seller-provided lawyers or translators.

What are the main types of property titles in Cambodia, and which one is safest to buy?

Cambodia recognizes three main property title types with varying levels of legal security: strata titles for condominiums, hard titles for full ownership, and soft titles for local registrations.

Title Type	Legal Security Level	Foreign Ownership Eligibility
Strata Title	High - Ministry registered	Yes - safest option for foreigners
Hard Title	Highest - full ownership	No - Cambodians/companies only
Soft Title	Low - local registration	Not recommended for foreigners
Possession Certificate	Medium - transitional document	Risky for foreign buyers
Sales Receipt	Very Low - informal proof	No legal protection

Strata titles represent the safest option for foreign buyers, providing official recognition from the Ministry of Land Management for condominium and commercial unit ownership above ground floor. These titles offer strong legal protection and are fully transferable and bankable.

Hard titles provide the strongest ownership rights but remain available only to Cambodian citizens or qualifying Cambodian companies. They offer full ownership including land rights and represent the gold standard for domestic ownership.

Soft titles, often based on local government registrations, carry significant risks for foreign buyers due to weak legal standing and limited enforceability. These documents don't provide adequate protection for substantial property investments and should be avoided by international buyers.

How long does it usually take to complete the property transfer process?

The complete property transfer process in Cambodia typically requires 1-3 months from signed agreement to final title transfer, depending on due diligence complexity and government processing efficiency.

Initial due diligence and legal review generally take 2-4 weeks, involving title verification, property history research, and contract preparation. This timeline can extend if issues are discovered requiring additional investigation or if properties have complex ownership histories.

Contract execution and government registration usually require 3-6 weeks for processing through the Ministry of Land Management. Registration efficiency varies by location, with Phnom Penh generally processing faster than provincial areas. New developments with established strata titles typically process more quickly than resale properties.

Final settlement and handover can be completed within 1-2 weeks once government registration is approved, involving final payments, key handover, and utility transfers. The timeline may extend during peak purchase periods or if financing arrangements require additional processing time.

Factors that can delay the process include incomplete documentation, title disputes, unpaid taxes on the property, complex ownership structures, or the need for additional government approvals for specific property types.

What taxes, fees, or hidden costs should I expect during and after the purchase?

Property purchase in Cambodia involves several mandatory costs including transfer tax, VAT, legal fees, and ongoing property taxes that buyers must budget for beyond the purchase price.

Transfer tax represents the largest mandatory cost at 4% of the property's declared value, paid by the buyer during registration. This tax applies to all property transfers and cannot be avoided or reduced regardless of property type or buyer nationality.

Value Added Tax (VAT) applies at 10% for new properties purchased directly from developers, adding significantly to the total cost. This tax doesn't apply to resale properties between individuals but affects most new condominium and commercial unit purchases.

Legal and professional fees typically range from $1,000-$3,000 and include lawyer fees, notary costs, translation services, and title search expenses. These costs are essential for proper due diligence and legal protection, making them unavoidable for secure purchases.

Ongoing costs include annual property tax at 0.1% for properties exceeding $25,000 in value, building management fees for condominiums, and utility setup costs. Additional expenses may include bank fees for international transfers and occasional "facilitation fees" in some government offices.

Hidden costs often emerge from incomplete initial research, including unpaid back taxes on the property, outstanding building management fees, or required building repairs that weren't disclosed during purchase negotiations.

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.

What are the most common mistakes foreigners make when buying property in Cambodia?

Foreign buyers frequently make critical errors that result in financial losses, legal complications, or invalid property purchases that could have been avoided with proper preparation.

- **Purchasing properties without proper strata or hard titles** - Many buyers accept soft titles or informal documentation that provides no legal protection- **Trusting nominee structures without proper legal oversight** - Relying on informal agreements with Cambodian nominees without enforceable contracts- **Failing to engage independent legal counsel** - Using seller-recommended lawyers or relying on translations instead of qualified legal representation- **Overlooking foreign ownership restrictions** - Attempting to buy ground floor units or exceeding the 70% foreign ownership cap- **Paying non-refundable deposits without contractual protection** - Making substantial payments before proper due diligence and contract execution- **Ignoring developer track records and financial stability** - Purchasing from untested developers without verified completion history- **Misunderstanding lease terms and renewal conditions** - Entering long-term leases without clear renewal provisions or proper registration

What are the scams or red flags I should be especially careful about in this market?

Cambodia's property market contains numerous scams targeting foreign buyers, ranging from fraudulent ownership promises to fake documentation and guaranteed return schemes.

Direct land ownership promises represent the most common scam, with agents claiming they can help foreigners own land directly through special arrangements or connections. This is constitutionally impossible, and any such claims indicate fraudulent activity or misrepresentation of legal structures.

Fake or invalid documentation scams involve sellers presenting properties with soft titles, local receipts, or forged documents claiming to be official titles. These documents provide no legal protection and can result in total loss of investment when challenged.

Guaranteed return schemes promise unrealistic rental yields or property value appreciation backed by developer guarantees. These promises are often used to justify inflated prices and rarely deliver promised returns, particularly during economic downturns.

Non-refundable deposit demands from unreliable agents or developers create pressure to commit without proper due diligence. Legitimate transactions should always allow refundable deposits pending satisfactory title verification and legal review.

Deals that discourage professional legal involvement or pressure buyers to rush decisions without proper documentation review indicate potential fraud. Legitimate sellers welcome thorough due diligence and professional legal oversight.

Who are the professionals I absolutely need to involve—lawyers, notaries, agents—to avoid legal or financial trouble?

Successful property purchase in Cambodia requires a qualified team including specialized lawyers, licensed agents, and certified notaries to navigate legal complexities and avoid costly mistakes.

A qualified lawyer specializing in Cambodian property law represents the most critical professional relationship, providing title verification, contract review, and legal protection throughout the transaction. Choose lawyers with specific experience in foreign property transactions rather than general practitioners or translators claiming legal expertise.

Licensed real estate agents with proven track records in foreign transactions provide market knowledge, property access, and transaction coordination. Verify agent licensing with relevant authorities and check references from previous foreign clients. Avoid unlicensed individuals claiming to represent properties or developers.

Certified notary publics handle official document certification and contract validation required for government registration. Ensure notaries are properly certified and authorized to handle real estate transactions in the relevant jurisdiction.

Qualified accountants or tax advisors help navigate local tax obligations, annual filing requirements, and ongoing compliance for property ownership. This becomes particularly important for company structures or rental property investments.

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.

Sources

1. Emerhub - Buying Property in Cambodia as a Foreigner
2. IPS Cambodia - Can Foreigners Own Land in Cambodia
3. BambooRoutes - Cambodia Real Estate for Foreigners
4. CBRE Cambodia - Real Estate Law Guide for Foreign Investors
5. Adaeng - Foreign Property Ownership Cambodia Guide
6. RealEstate.com.kh - Buying Condo in Cambodia as a Foreigner
7. Harbor Property - Can Foreigners Buy Borey in Cambodia
8. LinkedIn - Foreigners Guide to Buying Property in Cambodia