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
As of June 2025, foreigners can legally own condominiums in Cambodia, but they cannot own land or ground-floor units.
The Cambodian real estate market offers attractive rental yields of 5-9% annually, particularly in prime areas of Phnom Penh, Siem Reap, and coastal cities. However, foreign buyers must navigate specific ownership restrictions and focus exclusively on strata-titled units above the ground floor.
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 own condominiums above ground floor in Cambodia (up to 70% of units in a building) but cannot own land directly. The buying process requires careful attention to title verification, with total costs including 4% transfer tax, 10% VAT on new properties, and annual property tax of 0.1% on values above $25,000.
| Aspect | Details | Key Numbers |
|---|---|---|
| Property Rights | Condos above ground floor only | Maximum 70% foreign ownership per building |
| Purchase Costs | Transfer tax + VAT + Legal fees | 4% + 10% + $1,000-$2,000 |
| Rental Yields | Phnom Penh, Siem Reap, Sihanoukville | 5-9% annually |
| Minimum Investment | Entry-level condos in Phnom Penh | Starting from $94,813 |
| Mortgage Options | Limited availability for foreigners | 50-70% LTV, 7-12% interest |
| Capital Gains Tax | On property sale profits | 20% of profit |
| Annual Property Tax | Based on property value | 0.1% above $25,000 threshold |
What types of properties can foreigners actually buy in Cambodia, and what's off-limits?
Foreigners can legally own strata-titled condominium units above the ground floor in Cambodia, but they cannot own land or ground-floor properties.
The Cambodian Constitution and Land Law specifically reserve land ownership for Cambodian citizens and entities with at least 51% Cambodian ownership. This means standalone houses, villas, or any property with direct land contact is strictly off-limits for foreign ownership. However, foreigners can purchase condominiums starting from the first floor and above, with foreign ownership capped at 70% of total units in any single building.
For those interested in houses or land, alternative structures exist. You can secure long-term leases ranging from 50 to 99 years, establish a Cambodian company with a local majority shareholder (at least 51% Cambodian ownership), or use trust structures which are becoming increasingly popular despite setup and maintenance costs.
The key difference between foreign and local ownership is substantial. While Cambodians enjoy full freehold rights to any property type including land, houses, and all condominium floors, foreigners face strict limitations. Locals also have access to all title types (hard, soft, and LMAP titles), whereas foreigners are generally restricted to hard titles for their condominium purchases.
It's something we develop in our Cambodia property pack.
Do I need any special visa or residency status to buy property in Cambodia?
No specific visa or residency status is required to purchase a strata-titled condominium in Cambodia - you can buy property even on a tourist visa.
The Cambodian government places no visa requirements on property purchases, meaning tourists and business visitors can legally acquire condominiums without establishing residency. There are also no nationality-based restrictions; whether you're from the United States, Europe, or Asia, all foreigners face the same property ownership regulations.
For those planning extended stays or seeking investment benefits, Cambodia offers attractive residency programs. The "My Second Home" (CM2H) program grants a 10-year visa for a minimum investment of $50,000 in approved real estate projects. Additionally, a $100,000 real estate investment can qualify you for a residence permit under certain government programs.
While not required for property purchase, a business visa (E-class) is recommended if you plan to manage rental properties or conduct regular business activities in Cambodia. This visa type offers more flexibility for multiple entries and longer stays compared to tourist visas.
Can I handle the entire property purchase remotely, or must I travel to Cambodia?
You can manage the initial stages of property purchase remotely, but physical presence is typically required for final contract signing and ownership transfer.
The property search, initial negotiations, and reservation agreements can all be handled online or through representatives. Many developers and agencies now offer virtual property tours, digital document signing for preliminary agreements, and remote payment processing for initial deposits. This allows buyers to secure their chosen property without immediate travel to Cambodia.
However, for the Sale and Purchase Agreement (SPA) and final ownership transfer at the Ministry of Land Management, Urban Planning and Construction (MLMUPC), both buyer and seller are generally required to appear in person. Some agencies may facilitate remote completion through power of attorney arrangements or notarial services, but this adds complexity and cost to the transaction.
If remote completion is essential, ensure you work with reputable agencies experienced in handling such transactions. They can guide you through the specific documentation required for power of attorney and ensure all legal requirements are met for a valid property transfer.
What taxes will I pay as a foreign property owner in Cambodia?
Foreign property owners in Cambodia face several tax obligations including transfer tax at purchase, annual property tax, rental income tax, and capital gains tax upon sale.
| Tax Type | Rate | When Due |
|---|---|---|
| Transfer Tax (Stamp Duty) | 4% of property value | At purchase |
| VAT (new properties) | 10% of purchase price | At purchase (may be included) |
| Annual Property Tax (TOIP) | 0.1% of value above $25,000 | Yearly |
| Rental Income Tax | 14% of gross rental income | Annually |
| Capital Gains Tax | 20% of profit | Upon sale |
| Withholding Tax | Variable | When renting to companies |
| Registration Fees | $100-$200 | At purchase |
The annual property tax calculation is based on 80% of the property's market value minus $25,000, then multiplied by 0.1%. For example, a $100,000 property would incur annual tax of $55 (($100,000 Ă— 0.8 - $25,000) Ă— 0.001). Rental income tax for foreigners is straightforward at 14% of gross rental income, higher than the 10% rate for locals.
Capital gains tax applies when selling your property, calculated at 20% of the profit. You can deduct actual expenses or use a standardized formula provided by tax authorities. Some new developments may offer tax incentives or exemptions, so verify current benefits with your developer or tax advisor.
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What's the exact step-by-step process to legally buy property in Cambodia?
The legal process for buying property in Cambodia involves seven key steps from property search to receiving your title deed.
First, identify suitable strata-titled condominiums through reputable agents or developers, focusing exclusively on units above ground floor. Second, conduct thorough due diligence by verifying the property has a hard title or proper strata title, checking for any liens or encumbrances, physically inspecting the property, and researching the developer's track record and licenses.
Third, negotiate terms and sign a reservation agreement with a small deposit (typically $1,000-$5,000) to secure the unit. Fourth, prepare and sign the Sale and Purchase Agreement (SPA), which requires a larger deposit of 10-30% of the purchase price. At this stage, you'll need to submit essential documents including your passport, current visa (tourist or business), marriage certificate if applicable, the signed SPA, and proof of payment.
Fifth, 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. Sixth, receive your official strata title deed in your name, which serves as definitive proof of ownership. Finally, ensure compliance with ongoing tax obligations including annual property tax and rental income declaration if you lease the property.
The entire process typically takes 2-4 weeks for cash purchases or 4-8 weeks if financing is involved. Each step requires careful attention to documentation and legal compliance to ensure a secure transaction.
Should I hire a lawyer or agent in Cambodia, and what exactly will they do for me?
While not legally mandatory, hiring both a lawyer and property agent is strongly recommended to protect your investment and navigate Cambodia's complex property market.
A qualified Cambodian lawyer will conduct title searches to verify ownership and check for liens, review and negotiate contract terms to protect your interests, ensure all documentation meets legal requirements, verify the developer's licenses and project approvals, and assist with dispute resolution if issues arise. Legal fees typically range from $1,000 to $2,000 for a standard condominium purchase.
Property agents provide different but equally valuable services. They offer market insights and property recommendations based on your requirements, arrange viewings and negotiate prices on your behalf, coordinate between all parties including developers and government offices, and help identify potential red flags or scams. Agent commissions are usually 1-3% of the purchase price, typically paid by the seller.
Working without professional assistance significantly increases your risk of fraud, purchasing properties with unclear titles, overpaying due to lack of market knowledge, or falling victim to illegal nominee arrangements. The combined cost of legal and agent services (roughly $2,000-$5,000) is minimal compared to the protection they provide for your investment.
It's something we develop in our Cambodia property pack.
Which Cambodian cities do foreigners prefer, and what makes each area special?
Phnom Penh, Siem Reap, and Sihanoukville are the top three cities attracting foreign property buyers in Cambodia, each offering distinct advantages.
Phnom Penh, as the capital and economic hub, attracts the majority of foreign investors. The city offers modern infrastructure, international schools, quality healthcare facilities, and a vibrant expat community estimated at over 100,000 residents. BKK1 remains the premium district with embassies and upscale amenities, while Tonle Bassac appeals to younger professionals with its riverside condos and nightlife. Toul Tom Poung (Russian Market area) provides a more affordable option with authentic local atmosphere.
Siem Reap draws buyers seeking tourism-related investment opportunities, with its proximity to Angkor Wat ensuring steady visitor traffic year-round. The Wat Bo area particularly stands out with rental yields of 7-9% and capital appreciation of 20-30% over recent years. The city's cultural appeal and lower property prices compared to Phnom Penh make it attractive for both lifestyle buyers and investors.
Sihanoukville offers beachfront living and has experienced rapid development, particularly in areas like Otres Beach. Despite past volatility, the coastal city is stabilizing with new infrastructure projects and offers strong rental potential from both tourists and the growing expatriate community. Other emerging destinations include Kampot and Kep for their riverside charm and laid-back lifestyle, and Battambang for its colonial architecture and artistic community.
Where exactly should I invest for the best rental income and property value growth?
BKK1 in Phnom Penh, Wat Bo in Siem Reap, and Otres Beach in Sihanoukville currently offer the strongest combination of rental yields and capital appreciation potential.
| Location | Rental Yield | Key Advantages |
|---|---|---|
| BKK1, Phnom Penh | 6-8.5% | Premium area, embassies, international schools, high expat demand |
| Tonle Bassac, Phnom Penh | 5-7% | Modern condos, riverside location, nightlife, young professionals |
| Wat Bo, Siem Reap | 7-9% | Tourist hotspot, near Pub Street, strong short-term rental market |
| Otres Beach, Sihanoukville | 6-8% | Beachfront location, development potential, growing infrastructure |
| Daun Penh, Phnom Penh | 7-8% | Riverside, tourist area, heritage sites, steady occupancy |
| Chroy Changvar, Phnom Penh | 5-6% | Emerging area, new infrastructure, lower entry prices |
| Toul Tom Poung, Phnom Penh | 5-7% | Affordable, local atmosphere, growing expat community |
Recent data shows Phnom Penh's residential market maintaining average yields of 7% annually, with premium locations like BKK1 achieving higher returns due to consistent demand from diplomats and international business professionals. The capital appreciation in these areas has averaged 5-10% annually over the past five years.
Emerging opportunities exist in Chroy Changvar, where new bridge connections and infrastructure improvements are driving property values upward. This peninsula area offers lower entry prices with potential for significant appreciation as development progresses. For tourism-focused investments, Siem Reap's proximity to Angkor Wat ensures steady short-term rental demand, with occupancy rates typically exceeding 70% in prime locations.
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.
How much do properties actually cost in Phnom Penh, Siem Reap, and other cities?
Property prices in Cambodia vary significantly by location, with Phnom Penh condominiums ranging from $94,813 to $558,408 and median prices between $204,472 to $247,415.
In Phnom Penh, entry-level condominiums in emerging areas start around $95,000, while premium units in BKK1 or Tonle Bassac can exceed $500,000. The average price per square meter in prime districts ranges from $2,500 to $3,500. Standalone houses in the capital, which foreigners cannot directly own, average around $250,000, indicating the relative value of condominium investments.
Siem Reap offers more affordable options with condominiums typically priced between $100,000 to $200,000, and a median around $150,000. The tourism-driven market provides excellent rental potential at lower entry points. Properties near the city center and tourist areas command premium prices, while developments further out offer better value for long-term appreciation.
Coastal properties in Sihanoukville show wide price variations. Beachfront condominiums range from $45,000 for basic units to $220,000 for luxury developments. The rapid development has created opportunities at various price points, though buyers should carefully assess developer credibility. In smaller cities like Kampot and Kep, property prices start from $60,000 for modest condominiums, offering affordable entry into the Cambodian market.
As we reach mid-2025, market analysts project continued price stability with gradual appreciation of 3-5% annually in prime locations, making current prices attractive for medium to long-term investment strategies.
What are the biggest mistakes foreigners make buying property in Cambodia?
The most costly mistakes involve attempting to own land illegally, using nominee structures, and failing to verify property titles properly.
- Illegal land ownership attempts: Some foreigners try to circumvent ownership laws by putting land or ground-floor units in a local's name. This provides zero legal protection and risks losing your entire investment.
- Nominee arrangements: Using a Cambodian citizen as a nominee owner is not legally enforceable. Courts will not recognize your claim if disputes arise, leaving you with no recourse.
- Inadequate title verification: Purchasing properties with soft titles, unclear ownership history, or fraudulent documents leads to lengthy legal battles or complete loss of investment.
- Trusting unverified developers: Buying from developers without proper licenses or track records often results in unfinished projects or substandard construction.
- Overpaying due to lack of research: Without market knowledge, foreigners frequently pay 20-40% above market rates, especially in tourist areas.
To avoid these pitfalls, only purchase strata-titled condominiums above ground floor from established developers with proven track records. Always verify hard titles through the Ministry of Land Management and engage qualified lawyers for due diligence. Research comparable property prices in your target area and never rush into purchases without proper documentation. Avoid any arrangement that seems to circumvent Cambodian law, no matter how common it might appear among other foreigners.
Can foreigners get mortgages in Cambodia, and what are the requirements?
Yes, some Cambodian banks offer mortgages to foreigners, though terms are more restrictive than those available to local citizens.
Foreign buyers typically face loan-to-value ratios of 50-70%, meaning you'll need a 30-50% down payment. Interest rates for foreign borrowers range from 7-12% annually, considerably higher than rates in developed markets. Banks generally require proof of stable income, valid visa or residence permit, employment contract or business registration, and sometimes a local guarantor or larger deposit.
Major banks offering foreign mortgages include Maybank, Bank of China, and select local institutions. The application process is more complex than for locals, often requiring extensive documentation translation and verification. Loan terms typically span 10-20 years, shorter than the 25-30 year terms common in Western markets.
To improve your mortgage approval chances, maintain accounts with your chosen bank for at least six months prior to application, provide comprehensive financial documentation including tax returns and bank statements, consider properties from developers with existing bank partnerships, and be prepared for a longer approval process of 4-8 weeks. Some buyers find it easier to secure financing from their home country or use developer payment plans that spread payments over the construction period.
It's something we develop in our Cambodia property pack.
What's the complete list of fees and taxes when buying, owning, and selling property?
Total transaction costs for property purchase in Cambodia typically amount to 15-20% above the property price, including all taxes and fees.
At purchase, you'll pay a 4% transfer tax on the property value, plus 10% VAT on new properties (though some developers include this in the advertised price). Legal fees range from $1,000 to $2,000, while stamp duty adds another $100-$200. If using an agent, their commission of 1-3% is usually covered by the seller, but verify this in advance.
During ownership, annual property tax (Tax on Immovable Property) applies at 0.1% of the property value exceeding $25,000. If you rent out your property, foreign owners pay 14% tax on gross rental income, filed annually. Additional costs may include building management fees, utilities, and maintenance, typically ranging from $50-$200 monthly depending on the development.
When selling, capital gains tax of 20% applies to your profit. The tax calculation allows for deduction of purchase price, improvement costs, and selling expenses. Additional selling costs include agent commission (3-5%), legal fees ($1,000-$2,000), and various administrative charges. Some transactions may also incur notary fees and property valuation costs.
Hidden costs often catching buyers off-guard include utility connection fees for new properties ($200-$500), property insurance (optional but recommended at $300-$500 annually), and potential special assessments for building improvements. Budget an additional 2-3% of property value for unexpected expenses during the transaction process.
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.
As of June 2025, Cambodia's real estate market presents compelling opportunities for foreign investors willing to navigate its unique regulatory landscape.
While ownership restrictions limit foreigners to condominiums above ground floor, the market compensates with attractive rental yields of 5-9% and steady capital appreciation in prime locations. Success requires careful attention to legal compliance, thorough due diligence, and working with reputable professionals who understand both local regulations and foreign investor needs.
Sources
- EmerHub - Foreign Property Ownership Guide
- The Diplomat - Land Ownership Analysis
- IPS Cambodia - Property Ownership Guide
- Expat Life Cambodia - Buying Property Guide
- BambooRoutes - Cambodia Real Estate for Foreigners
- Cambodia Property Asia - Step-by-Step Guide
- World Estate - Foreign Buyer's Guide
- Sopheap Cambo Law - Ownership Regulations
- Harvey Law Corporation - CM2H Program
- Knight Frank - Property Tax Guide