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
Foreigners in Cambodia face strict property ownership limitations that allow only strata-titled condominium units above the ground floor. Understanding these restrictions, the buying process, and market dynamics is crucial for any foreign investor considering Cambodian real estate.
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 only buy strata-titled condominiums above the ground floor in Cambodia, with no land ownership rights.
The property purchase process requires proper due diligence, transfer taxes of 4%, and highly recommended legal representation for safe transactions.
| Property Type | Foreign Ownership | Key Restrictions |
|---|---|---|
| Strata-titled condos (2nd floor+) | Allowed (up to 70% of building) | Must be post-2010 construction |
| Land and houses | Prohibited | Reserved for Cambodians only |
| Ground floor units | Prohibited | Cannot be owned by foreigners |
| Border area properties | Restricted | Within 30km of borders |
| Pre-2010 apartments | Restricted | Built before strata law |
| Commercial properties | Limited | Only in eligible buildings |
| Industrial properties | Restricted | Special permits required |
What types of property can foreigners legally buy in Cambodia compared to locals and other nationalities?
Foreigners in Cambodia can only legally own strata-titled condominium units located above the ground floor.
Foreign nationals are permitted to purchase up to 70% of the total units in any co-owned condominium building, but these units must be on the first floor or higher - never the ground floor. The building must have proper strata-title documentation issued after 2010 when Cambodia's strata law came into effect.
Cambodian citizens and entities with majority Khmer ownership enjoy full property ownership rights. They can purchase any type of real estate including land, standalone houses, villas, townhouses, and units on any floor of buildings with complete freehold rights. This creates a significant advantage for locals in the Cambodian property market.
Most foreign nationalities face identical restrictions regardless of their country of origin. The law treats all non-Cambodian citizens equally, with the only exception being those who have obtained Cambodian citizenship through birth or naturalization processes.
It's something we develop in our Cambodia property pack.
What kinds of property are foreigners restricted from owning outright?
Foreign nationals face comprehensive restrictions on land ownership and specific property types in Cambodia.
Land ownership of any kind is completely prohibited for foreigners and foreign-owned companies. This means standalone houses, villas, townhouses, and any property that includes land rights cannot be legally owned by non-Cambodians. Ground-floor and underground units in any building are also strictly off-limits to foreign buyers, even in otherwise eligible condominium developments.
Properties located within 30 kilometers of Cambodia's international borders face additional restrictions for foreign ownership, even if they meet strata-title requirements. This border restriction affects significant areas near Vietnam, Thailand, and Laos borders where some attractive properties might be located.
Older apartment buildings constructed before 2010 typically cannot be purchased by foreigners since they were built before Cambodia's strata law took effect. These pre-strata properties lack the proper legal framework that allows foreign ownership of individual units.
Industrial and certain commercial properties also face restrictions, often requiring special permits or falling under prohibited categories for foreign investment.
Do I need residency, a visa, or any specific permit to buy and hold property in Cambodia?
No residency status, visa requirements, or specific permits are needed for foreigners to purchase and hold eligible strata-title property in Cambodia.
The Cambodian government allows foreign property ownership without requiring buyers to establish residency or obtain special investment visas. This makes Cambodia relatively accessible compared to other Southeast Asian countries that tie property ownership to visa status or minimum residency periods.
Foreign buyers must ensure they comply with the fundamental rules regarding allowed property types and proper title documentation. The key requirement is that the property must be a strata-titled condominium unit above the ground floor in a post-2010 building, not any residency or visa status of the buyer.
However, buyers should maintain valid passport documentation and may need to show proof of funds during the purchase process. Some banks offering mortgages to foreigners may require evidence of stable income or employment, but this relates to financing rather than ownership eligibility.
As of September 2025, this straightforward approach to foreign property ownership remains one of Cambodia's more attractive features for international real estate investors.
Do I need to be physically present in Cambodia to complete a property purchase?
Physical presence is not strictly mandatory for completing a property purchase in Cambodia, though most legal professionals recommend it for security and transparency.
It's possible to complete a property transaction through a Power of Attorney arrangement or by working with trusted local legal representation. This allows buyers to handle the final signing and transfer procedures remotely if they cannot be physically present in Cambodia.
However, being present offers significant advantages for due diligence, contract verification, and property inspection. Meeting face-to-face with sellers, lawyers, and real estate agents helps build confidence in the transaction and allows for immediate resolution of any issues that arise during the process.
Many experienced investors recommend being present at least for the initial property viewing and final contract signing, even if some middle steps can be handled remotely. This balanced approach provides security while accommodating busy international schedules.
Remote transactions require extra care in choosing reputable legal representation and ensuring all documentation is properly verified before proceeding with payments or final transfers.
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What is the step-by-step process of buying property in Cambodia, and which documents are required?
The Cambodian property purchase process involves seven key steps with specific documentation requirements at each stage.
The process begins with finding an eligible property - specifically a strata-titled condominium unit above ground floor built after 2010. Once you've identified a suitable property, you must verify the property title by confirming it has a hard title issued by the national land registry, which provides the strongest legal protection available in Cambodia.
The next steps involve signing a sale and purchase agreement, typically with a 10% deposit, followed by comprehensive due diligence including background checks on the title, outstanding taxes, and seller credentials. The ownership transfer occurs at the local Land Office where transfer taxes and fees are paid, leading to the issuance or update of the strata title certificate in the buyer's name, and finally completion of payment with property handover.
Essential documents include the buyer's passport and identification, the property's strata-title hard certificate, a detailed sale and purchase contract, proof of funds through bank statements, tax clearance certificate from the seller, and receipts for all transfer taxes and legal fees paid during the transaction.
It's something we develop in our Cambodia property pack.
Is it mandatory to hire a lawyer or notary, and how do I choose a trustworthy one?
Hiring a lawyer or notary is not legally mandatory but highly recommended for safe property transactions in Cambodia.
Legal professionals provide crucial services including title verification, contract drafting, transaction facilitation, and protection against common pitfalls that can cost buyers significant money. The complexity of Cambodian property law and the risks associated with improper documentation make professional legal assistance a wise investment.
Choose trustworthy legal professionals by verifying their credentials and registration with the Cambodian Bar Association. Request references from previous foreign property buyers and research their reputation within the expatriate community. Experienced lawyers specializing in real estate transactions for foreign clients typically offer the best service and understanding of potential issues.
Legal fees typically range from $1,000 to $2,000 for standard conveyancing and lawyer services, which represents a small fraction of most property purchase prices. This investment provides significant protection against title problems, contract disputes, and regulatory compliance issues.
Interview multiple lawyers before choosing, asking specific questions about their experience with foreign property purchases, their fee structure, and their approach to due diligence and title verification.
What are the main taxes, fees, and costs involved when purchasing, holding, and reselling a property?
| Tax/Fee Type | Rate | When Applied |
|---|---|---|
| Transfer Tax | 4% of property value | During purchase (paid to government) |
| Value Added Tax (VAT) | 10% | New properties from developers |
| Annual Property Tax | 0.1% | Properties valued above USD 25,000 |
| Legal Fees | $1,000-$2,000 | Conveyancing and legal services |
| Agency Commission | Variable | Usually paid by seller |
| Capital Gains Tax | 20% | Profit from property resale |
| Registration Fees | Nominal | Title registration and updates |
Are mortgages actually available to foreigners, under what rates and conditions, and what tips help secure one?
Mortgage availability for foreigners in Cambodia is limited but possible with certain banks offering loans under strict conditions.
Foreign buyers can access mortgages with loan-to-value ratios typically ranging from 50% to 70% of the property value. Interest rates generally fall between 7% and 12% annually, with maximum loan terms around 20 years. These terms are less favorable than what locals might receive, reflecting the higher risk banks associate with foreign borrowers.
Banks require substantial proof of income, employment stability, and financial capacity from foreign applicants. Documentation typically includes several years of tax returns, bank statements, employment letters, and sometimes additional collateral or guarantees.
Tips for securing mortgage approval include presenting comprehensive financial documentation, considering developer financing options which sometimes offer better terms, and comparing multiple lenders since terms can vary significantly. Some buyers find success by establishing banking relationships in Cambodia before applying for property loans.
Developer financing occasionally provides more accessible terms than traditional banks, especially for new construction projects where developers are motivated to facilitate sales to international buyers.
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.
Which cities and regions are the most attractive for foreigners to live in, settle, or retire?
Four main regions attract the majority of foreign residents and investors in Cambodia, each offering distinct lifestyle and investment characteristics.
Phnom Penh serves as the economic hub with the largest expatriate community, best infrastructure, international schools, and healthcare facilities. The capital offers urban conveniences, diverse dining and entertainment options, and the strongest job market for foreigners working in Cambodia. Property values tend to be highest but so are rental yields and capital appreciation potential.
Siem Reap attracts retirees and lifestyle-focused expatriates with its relaxed atmosphere, proximity to Angkor temples, and established tourism infrastructure. The city offers lower living costs than Phnom Penh while maintaining good amenities and a significant expatriate community centered around tourism and hospitality industries.
Sihanoukville provides beach access and a developing casino scene, though it has experienced rapid and sometimes chaotic development in recent years. The area offers potential for high returns but comes with increased market volatility and infrastructure challenges.
Kampot and Kep regions appeal to foreigners seeking rural lifestyle, river and coastal views, and a growing reputation for relaxed retirement living. These areas offer the lowest property prices and living costs while providing scenic natural environments and small but tight-knit expatriate communities.
Which areas have the best rental yields, tourism numbers, livability ratings, and capital appreciation forecasts?
Phnom Penh consistently delivers the highest rental yields and most stable capital appreciation across Cambodia's major markets.
The capital city generates annual rental yields between 5% and 9%, particularly in prime districts like BKK1, Tonle Bassac, and Riverside areas. These central districts benefit from strong demand from expatriate professionals, international business travelers, and affluent locals seeking modern accommodations.
Siem Reap offers rental yields between 5% and 8%, heavily influenced by tourism seasonality and proximity to Angkor Wat. Properties targeting tourist accommodation can achieve higher yields during peak seasons but may experience vacancy during slower months.
Sihanoukville presents higher yield potential ranging from 6% to 10%, but this comes with increased risk due to rapid market changes and infrastructure development challenges. The area's casino-driven economy creates both opportunities and volatility.
Kampot and Kep provide moderate rental yields between 4% and 7% with more stable, long-term appreciation potential. These areas attract retirees and lifestyle buyers less focused on maximum yields but seeking steady, reliable returns in scenic locations.
It's something we develop in our Cambodia property pack.
What is the current breakdown of property prices by city and region in Cambodia?
| City/Region | Entry-level Condo Price (USD) | Typical Rental Yield (%) |
|---|---|---|
| Phnom Penh | $95,000+ | 5-9 |
| Siem Reap | $65,000+ | 5-8 |
| Sihanoukville | $85,000+ | 6-10 |
| Kampot/Kep | $75,000+ | 4-7 |
| Battambang | $60,000+ | 4-6 |
| Koh Kong | $70,000+ | 3-6 |
| Preah Sihanouk Province | $80,000+ | 5-8 |
What are the most common mistakes and pitfalls foreigners make when buying property in Cambodia?
Foreign property buyers in Cambodia frequently fall into predictable traps that can result in significant financial losses or legal complications.
The most serious mistake involves purchasing properties without proper title verification or adequate due diligence. Many buyers assume properties offered to them are legally available for foreign ownership without confirming strata-title status or checking for outstanding liens and taxes.
Buyers often misunderstand ownership restrictions, attempting to purchase land, ground-floor units, or standalone houses through illegal nominee structures. These arrangements violate Cambodian law and can result in total loss of investment when authorities investigate or disputes arise.
Financial planning errors include failing to budget for all taxes, fees, and hidden costs associated with purchase and ownership. Transfer taxes, VAT, legal fees, and ongoing property taxes can add 15-20% to the purchase price, catching unprepared buyers off-guard.
Other common mistakes include not hiring reputable legal representation, ignoring market trends and overpaying for risky projects, and purchasing in older buildings that lack proper strata-title eligibility for foreign ownership. Each of these mistakes can be avoided through proper research, professional advice, and understanding Cambodia's specific property regulations.
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.
Foreign property ownership in Cambodia requires careful navigation of strict legal requirements and thorough market understanding.
Success depends on proper due diligence, professional legal support, and realistic expectations about ownership limitations and market conditions.
Sources
- Emerhub - Buying Property in Cambodia as a Foreigner
- IPS Cambodia - Property Ownership Guide for Foreigners
- BambooRoutes - Cambodia Real Estate for Foreigners
- Multilaw - Real Estate Guide Cambodia
- RealEstate.com.kh - Buying Condo in Cambodia as a Foreigner
- BNG Legal - Foreign Ownership of Immovable Property
- Sopheap Cambo Law - Foreign Ownership of Land and Buildings
- IPS Cambodia - Can Foreigners Own Land in Cambodia
- LinkedIn - Foreigners Guide to Buying Property in Cambodia
- Offshore in Asia - The Foreigners Guide to Buying Property in Cambodia