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
Americans can legally own strata-titled condominiums above ground floor in Cambodia but cannot own land directly.
As of June 2025, the Cambodia property market continues to attract American investors and expats, particularly in Phnom Penh and Siem Reap, where rental yields range from 5-9%. While property ownership laws restrict foreign land ownership, Americans have clear pathways to invest in Cambodia's growing real estate market through condominium purchases.
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.
Americans can purchase strata-titled condominiums (above ground floor) in Cambodia without residency requirements, using tourist visas for transactions.
Property prices average $2,000-$3,500 per square meter in Phnom Penh, with rental yields of 5-9% making it the most attractive market for American investors.
| Property Type | Americans Can Own | Restrictions |
|---|---|---|
| Strata-titled Condos (Above Ground Floor) | Yes (up to 70% of building units) | Must be registered after 2010 |
| Ground Floor Units | No | Reserved for Cambodian citizens |
| Land/Houses | No | Long-term lease only (50-99 years) |
| Commercial Strata Units | Yes | Same 70% building limit |
| Villas/Standalone Houses | No | Company structure or lease required |
| Agricultural Land | No | Cambodian citizens only |
| Industrial Properties | Limited | Special economic zones may allow |
Can Americans legally own property in Cambodia or only lease it, and how does this compare to Cambodian citizens?
Americans face significant restrictions on property ownership in Cambodia compared to local citizens.
As foreigners, Americans cannot own land directly under Cambodian law. They can only own up to 70% of the units in a strata-titled condominium building, excluding ground-floor units. This restriction applies to all buildings registered after 2010 under the strata title system.
For land-based properties like houses or villas, Americans must use alternative structures such as long-term leases (50-99 years), Cambodian company ownership where the American holds a minority stake, or trust arrangements. These workarounds carry legal and practical risks that require careful legal guidance.
Cambodian citizens, in contrast, can own any type of property outright including land, houses, condominiums on any floor, and commercial properties. They face no ownership restrictions on property type, location, or percentage of building ownership.
It's something we develop in our Cambodia property pack.
What are the specific types of properties Americans are allowed to purchase, and are there restrictions on land ownership versus condominiums?
Americans can legally purchase strata-titled condominium units above the ground floor in buildings registered after 2010.
The 70% foreign ownership rule means that in any condominium building, no more than 70% of the total units can be owned by foreigners. Ground floor units are specifically reserved for Cambodian citizens only. Commercial strata units in eligible buildings are also available to American buyers under the same 70% limitation.
Americans cannot purchase land, standalone houses, villas, or any property that includes direct land ownership. Agricultural land is completely off-limits to foreign ownership. Industrial properties have limited availability, primarily in special economic zones with specific government approvals.
The most practical alternatives for Americans wanting land-based properties include long-term leasehold agreements (typically 50-99 years), setting up a Cambodian company with majority local ownership, or using trust structures. Each option requires specialized legal advice and carries different risk profiles.
Do Americans need to obtain residency, a long-stay visa, or any special permits to buy or hold property in Cambodia?
No residency, long-stay visa, or special permit is required for Americans to buy or hold condominium property in Cambodia.
Americans can purchase eligible properties even while on a tourist visa. The transaction process does not require any minimum stay period or immigration status beyond legal entry into the country. This makes Cambodia one of the more accessible Southeast Asian markets for American property investors.
Cambodia does offer residency programs like "My Second Home" for larger investments, but these are optional and provide long-term visa benefits rather than property ownership rights. The program typically requires investments starting from $100,000 and offers renewable long-term visas.
Once property is purchased, Americans can hold the title indefinitely without maintaining any specific visa status. The property ownership is not tied to physical presence in Cambodia, making it suitable for investment purposes or future relocation plans.
Is it necessary for Americans to be physically present in Cambodia during the purchase process, or can it be done remotely through a representative or power of attorney?
Physical presence is not required for initial purchase steps, but final registration typically requires the buyer's presence or legal representation.
The early stages including property search, reservation, and deposit payment can be completed remotely through digital communication and international wire transfers. Many developers and agents accommodate overseas buyers with virtual property tours and electronic documentation.
Final contract signing and title transfer at the Ministry of Land Management traditionally require the buyer's physical presence. However, Americans can use a notarized power of attorney to authorize a local representative to complete the transaction on their behalf.
Using a power of attorney adds complexity and cost to the transaction, typically requiring embassy notarization in the United States and local legal representation in Cambodia. This process can extend the timeline by 2-4 weeks but allows complete remote completion of the purchase.
Don't lose money on your property in Cambodia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What legal steps must an American follow to buy property in Cambodia, and what documents are required at each stage?
The Cambodia property purchase process involves five key legal steps with specific documentation requirements at each stage.
Due diligence requires verifying the property's hard title or strata title, confirming the seller's ownership, and checking for any legal disputes. Required documents include the original property title, seller's identification, and developer's approvals for new constructions.
The reservation agreement secures the property with a deposit, typically 10-20% of purchase price. Americans need their passport, signed reservation form, and deposit receipt during this stage. This step can often be completed remotely.
The Sale and Purchase Agreement (SPA) is drafted in both Khmer and English languages and requires legal review. Documentation includes passport copies, the bilingual SPA, and payment records for any additional deposits made.
Transfer and registration involves paying a 4% transfer tax and $100-$200 stamp duty to the Ministry of Land Management. Required documents include passport, executed SPA, tax payment receipts, and the title transfer application form.
Final title issuance completes the process when Americans receive the updated strata title in their name. This document serves as proof of legal ownership and should be stored securely both in Cambodia and the United States.
Is hiring a local lawyer mandatory or just recommended for Americans buying property in Cambodia, and what does their role typically include?
Hiring a local lawyer is not legally mandatory but strongly recommended for American property buyers in Cambodia.
Local lawyers conduct comprehensive due diligence on property titles and developer credentials, which is crucial given the complexity of Cambodia's land title system and the prevalence of fraudulent documents. They verify that properties are eligible for foreign ownership and that all necessary approvals are in place.
Legal professionals draft and review bilingual contracts to ensure Americans understand all terms and conditions. They also advise on compliance with foreign ownership laws and help structure transactions to minimize legal risks, particularly important for complex ownership arrangements.
Lawyers facilitate the registration process, handle tax payments, and can set up power of attorney arrangements for remote buyers. They typically charge $1,000-$2,000 for standard condominium transactions, which represents valuable insurance against costly legal mistakes.
It's something we develop in our Cambodia property pack.
Can Americans access mortgages in Cambodia, which banks offer them, what are the current interest rates, and what are the common eligibility conditions or workarounds?
Americans can access mortgages in Cambodia, but options are limited and requirements are strict.
| Bank | Interest Rate Range | Loan-to-Value Ratio |
|---|---|---|
| RHB Cambodia | 7-10% annually | 50-70% |
| Canadia Bank | 8-12% annually | 60-70% |
| Vattanac Bank | 7-11% annually | 50-65% |
| Public Bank Berhad | 8-10% annually | 50-60% |
| Advanced Bank of Asia | 9-12% annually | 50-70% |
| Developer Financing | 6-8% annually | 70-80% |
| International Banks | 5-9% annually | 60-80% |
Common eligibility requirements include a valid passport, proof of stable income (typically $3,000+ monthly), good credit history, and property documents showing legal ownership eligibility. Banks generally focus on condominium financing as landed property mortgages are typically unavailable to foreigners.
Alternative financing options include developer financing programs offering competitive rates, international banks with Cambodia operations, and private lending arrangements. Americans often find developer financing more accessible, especially for new construction projects.
How are property taxes, rental income tax, and capital gains taxed for American owners, and are there any double taxation agreements between the U.S. and Cambodia?
Americans face multiple tax obligations on Cambodia property, with no double taxation agreement between the two countries.
Transfer tax of 4% applies to all property purchases, paid at the time of transaction. New properties also incur 10% VAT, which may be included in the purchase price. Annual property tax is 0.1% of assessed value for properties worth over $25,000.
Rental income is taxed at 14% of gross rental income, paid annually to Cambodia tax authorities. Capital gains tax applies at 20% of profit when selling property, with allowable deductions for improvement costs and transaction fees.
Registration fees of $100-$200 are required at purchase, along with various administrative charges. Americans must also report their Cambodia property income and gains to the IRS, as the United States taxes worldwide income for its citizens.
The absence of a double taxation agreement means Americans may face tax obligations in both countries, making professional tax advice essential for proper planning and compliance.
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 areas in Cambodia are most popular among Americans for living, investing, or retiring, and how do these preferences compare to those of other nationalities?
Phnom Penh dominates American preferences for Cambodia property investment and living arrangements.
Americans favor Phnom Penh for its urban amenities, business opportunities, and stronger rental yield potential of 5-9% in prime districts. The capital offers international schools, healthcare facilities, and established expat communities that appeal to American families and retirees.
Siem Reap attracts Americans seeking a quieter lifestyle near Angkor Wat, with a well-developed tourism infrastructure and expat services. The city offers cultural richness and lower living costs, making it popular for retirement and tourism-related investments.
Sihanoukville sees mixed American interest due to its coastal location but concerns about rapid development and casino-dominated growth. Chinese and regional investors are more active in Sihanoukville, while Americans tend to prefer the stability and infrastructure of Phnom Penh and Siem Reap.
American investment patterns focus on established areas with proven rental markets, contrasting with Chinese investors who often pursue newer developments and higher-risk, higher-reward opportunities in emerging areas.
Where in Cambodia are the best opportunities for rental yield or capital appreciation, based on recent tourism stats, rental income data, liveability rankings, and growth forecasts?
Phnom Penh offers the strongest combination of rental yield and capital appreciation potential for American investors as of June 2025.
Central Phnom Penh districts generate 5-9% annual rental yields, driven by strong demand from expatriates, local professionals, and growing middle-class population. Key areas like Daun Penh, Chamkar Mon, and 7 Makara provide consistent rental income with occupancy rates above 85%.
Siem Reap maintains stable rental markets with 4-7% yields, particularly for properties serving the tourism sector. As Cambodia's tourism recovery accelerates, Siem Reap properties benefit from both short-term rental demand and long-term expat housing needs.
Sihanoukville presents higher volatility but potential for significant capital gains in select developments. The city's designation as a special economic zone and Chinese investment influx create opportunities, though Americans should carefully evaluate political and market risks.
Growth factors supporting Cambodia real estate include rapid urbanization, infrastructure development through Chinese Belt and Road projects, and Cambodia's growing integration with ASEAN economic systems. Phnom Penh and Siem Reap consistently rank highest for expatriate liveability in Cambodia.
What are the average property prices per square meter in key Cambodian cities or regions like Phnom Penh, Siem Reap, and Sihanoukville, and how do they compare?
Property prices vary significantly across Cambodia's major cities, with Phnom Penh commanding premium rates.
Phnom Penh averages $2,000-$3,500 per square meter for new condominiums in central districts, with luxury developments reaching $4,000+ per square meter. Prime locations like BKK1, Daun Penh, and Chamkar Mon represent the upper price range, while suburban areas start around $1,500 per square meter.
Siem Reap prices range from $1,200-$2,000 per square meter in tourist and expatriate areas, offering better affordability for American buyers. Properties near Pub Street, Old Market, and international school zones command premium prices within this range.
Sihanoukville prices fluctuate between $1,500-$2,500 per square meter depending on location and development type. Beachfront properties and casino-area developments typically price at the higher end, while residential areas further from the coast offer more moderate pricing.
Older buildings and suburban locations across all cities can offer prices 20-30% below these averages, while luxury oceanfront or riverside properties can exceed $5,000 per square meter in prime developments.
It's something we develop in our Cambodia property pack.
What are the most common mistakes or scams that Americans make or fall into when buying property in Cambodia, and how can they avoid them?
Americans frequently fall victim to preventable mistakes and scams in Cambodia's property market.
The most common error involves purchasing non-strata titled properties or ground-floor units that foreigners cannot legally own. Americans should verify strata title registration and confirm floor eligibility before any financial commitment. Always demand to see original title documents and verify registration with local authorities.
Title fraud represents a serious risk, with fake or disputed ownership documents causing Americans to lose entire investments. Comprehensive due diligence through qualified local lawyers helps identify authentic "hard" or "strata" titles and uncover any existing disputes or liens.
Relying solely on nominee structures without proper legal protection exposes Americans to significant risk. While trust and company setups offer more security, they require specialized legal guidance and ongoing compliance obligations that many Americans underestimate.
Avoiding qualified local legal representation increases vulnerability to paperwork errors, missed deadlines, and fraudulent schemes. Americans should budget $1,000-$2,000 for professional legal services rather than attempting to navigate Cambodia's complex property laws independently.
Ignoring tax obligations, including annual property taxes and potential U.S. reporting requirements, can result in penalties and legal complications. Americans need comprehensive tax planning before purchase to understand all obligations in both countries.
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.
Americans can successfully invest in Cambodia's property market through strata-titled condominiums, with Phnom Penh offering the strongest returns and Siem Reap providing lifestyle benefits.
As we reach mid-2025, Cambodia's growing economy and infrastructure development continue to attract American investors seeking Southeast Asian property exposure with clear legal frameworks.
Sources
- EmerHub Cambodia Property Guide
- BambooRoutes Cambodia Real Estate Guide
- Sopheap Cambodian Law - Land Ownership Guide
- Expat Life Cambodia Property Guide
- The Diplomat - Foreign Land Ownership
- BNG Legal - Foreign Property Ownership
- Knight Frank Cambodia Property Guide
- CBRE Cambodia Property Purchase Guide
- IPS Cambodia Home Loans Guide
- IPS Cambodia Property Tax Guide