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 purchase property in Cambodia, but only specific types with clear restrictions.
While foreigners cannot own land or ground-floor units, they can own strata-titled condominium units above the ground floor in buildings registered after 2010, with foreign ownership capped at 70% per building. This guide explains exactly what Americans can buy, the legal process, costs, and common pitfalls to avoid when investing in Cambodia's growing real estate market.
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 legally buy strata-titled condominiums above ground floor in Cambodia but cannot own land, houses, or ground-floor units.
The purchase process requires 4% transfer tax, proper documentation, and while lawyers aren't mandatory, they're strongly recommended to avoid title fraud and legal complications.
| Aspect | Details | Key Restrictions |
|---|---|---|
| Property Types Allowed | Strata-titled condos above ground floor | Max 70% foreign ownership per building |
| Property Types Forbidden | Land, houses, villas, ground-floor units | No exceptions for Americans |
| Visa Requirements | None (can buy on tourist visa) | No residency status needed |
| Transfer Tax | 4% of purchase price | Paid by buyer at closing |
| Rental Income Tax | 14% gross income to Cambodia | Plus US tax obligations |
| Capital Gains Tax | 20% of profit when selling | No double taxation treaty |
| Popular Cities | Phnom Penh, Siem Reap | $2,000-$3,500/sqm in Phnom Penh |
Can Americans legally buy property in Cambodia?
Yes, Americans can legally purchase property in Cambodia, but only specific types with clear restrictions.
Americans and all other foreigners can own strata-titled condominium units above the ground floor in buildings that were registered after 2010. The Cambodian Foreign Ownership of Property Law allows foreigners to own up to 70% of the total units in any condominium building.
The key requirement is that the property must have a "strata title" or "hard title" - this is a specific type of ownership document that clearly defines the boundaries and ownership rights of individual units within a larger development. Properties with soft titles, communal titles, or other documentation types are off-limits to foreign buyers.
Americans cannot purchase properties located within 30 kilometers of Cambodia's national borders, regardless of the property type. This restriction applies to border areas with Vietnam, Laos, and other neighboring countries.
It's something we develop in our Cambodia property pack.
Are there restrictions for Americans compared to Cambodian citizens or other foreigners?
Americans face the same restrictions as all other foreign nationals when buying property in Cambodia.
All foreigners, regardless of nationality, are subject to identical limitations: they can only own strata-titled condominium units above the ground floor and cannot exceed 70% ownership in any building. There are no special advantages or additional restrictions for Americans compared to citizens from other countries.
Cambodian citizens, however, face no restrictions whatsoever. They can own land outright, purchase any floor or unit type, buy standalone houses and villas, and invest in agricultural land. Cambodians can also own 100% of any property type anywhere in the country, including border areas.
The 70% foreign ownership cap means that in practice, some desirable condominium projects may become unavailable to all foreigners once the foreign ownership quota is filled, but this applies equally to Americans and other foreign buyers.
What types of properties can Americans buy, and what types are off-limits?
Americans can purchase strata-titled condominium units on the second floor and above in buildings registered after 2010.
| Property Type | Americans Can Buy | Key Requirements |
|---|---|---|
| Condominium Units (2nd floor+) | ✓ Yes | Must have strata title, post-2010 registration |
| Ground Floor Condo Units | ✗ No | Restricted for all foreigners |
| Land/Plots | ✗ No | Cambodian citizens only |
| Standalone Houses | ✗ No | Requires land ownership |
| Villas | ✗ No | Requires land ownership |
| Agricultural Land | ✗ No | Cambodian citizens only |
| Commercial Buildings | ✗ No | Usually requires land ownership |
Americans have three alternative options for accessing restricted property types: long-term leases typically ranging from 50 to 99 years for houses or land, company structures where a Cambodian citizen holds majority ownership, and trust arrangements which require careful legal guidance due to their complexity.
Do Americans need a specific visa or residency status to own property in Cambodia?
No, Americans do not need any specific visa or residency status to purchase property in Cambodia.
Americans can buy eligible condominium units even while on a tourist visa. Property ownership rights are completely separate from immigration status, and there are no minimum residency requirements or investment visa obligations tied to real estate purchases.
Cambodia does offer investment-based visa programs, including the "My Second Home" visa for those making substantial investments, but these are optional benefits rather than requirements for property ownership. Some Americans choose these longer-term visas for convenience in managing their properties, but they are not mandatory for completing purchases.
The absence of visa requirements makes Cambodia's property market particularly accessible to American investors who want to purchase investment properties without relocating or obtaining long-term residency status.
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Do Americans have to be physically present in Cambodia to complete the purchase?
Americans do not need to be physically present throughout the entire purchase process, but presence is typically required for final document signing.
The initial steps including property search, reservation agreements, and deposit payments can all be handled remotely through email and wire transfers. Many Americans successfully complete due diligence, negotiate terms, and sign preliminary agreements from the United States.
For the final registration and title transfer, buyers traditionally need to be present to sign official documents at the cadastral office or land registry. However, Americans can use a notarized power of attorney to authorize a local representative, typically their lawyer or real estate agent, to handle the closing on their behalf.
The power of attorney process requires proper notarization in the United States and often apostille certification, which can add several weeks to the timeline. While this remote closing option is commonly used and legally accepted, it does require working with trustworthy local representatives and may involve slightly higher legal fees.
What documents and steps are required for an American to buy property, from start to finish?
The property purchase process in Cambodia involves five main steps with specific documentation requirements at each stage.
**Step 1: Due Diligence** requires verifying the property has a valid strata title, checking the legal owner matches the seller, and ensuring no liens or disputes exist. Required documents include the original title certificate, seller's identification documents, and developer approval letters for new construction projects.
**Step 2: Reservation Agreement** involves paying a deposit of 10-20% of the purchase price and signing a reservation form. Americans need their passport, signed reservation agreement, and deposit payment receipt.
**Step 3: Sale and Purchase Agreement (SPA)** requires drafting the final contract in both Khmer and English languages. Documents needed include passport copies, executed SPA, and complete payment records.
**Step 4: Transfer and Registration** involves paying the 4% transfer tax and $100-$200 stamp duty to the government. Required documents include passport, executed SPA, tax payment receipts, and completed transfer forms.
**Step 5: Final Title Issuance** results in receiving the updated strata title certificate with the American buyer's name. The entire process typically takes 30-60 days from start to finish, depending on financing and document preparation time.
Is it mandatory for Americans to hire a lawyer when buying property in Cambodia, and why might it be recommended?
Hiring a lawyer is not legally mandatory for Americans buying property in Cambodia, but it is strongly recommended due to significant risks in the market.
The primary risks that lawyers help mitigate include title fraud, where sellers present fake or invalid ownership documents, purchasing units that are not actually eligible for foreign ownership, and signing contracts that violate Cambodian property laws. These issues can result in complete loss of investment and have no legal recourse.
Qualified lawyers provide essential services including thorough vetting of both the property and developer's legal standing, drafting and reviewing all contracts to ensure compliance with local laws, overseeing the title transfer process and tax payments, and handling power of attorney procedures for remote buyers.
Legal fees typically range from $1,000 to $2,000 for a standard condominium purchase, representing a small fraction of the total investment that can prevent much larger losses. Given Cambodia's developing legal system and language barriers, the cost of legal representation is usually justified by the protection it provides.
It's something we develop in our Cambodia property pack.
What are the tax implications for Americans owning property in Cambodia, including rental income and capital gains?
Americans face tax obligations in both Cambodia and the United States, as the two countries do not have a double taxation treaty.
**Purchase Taxes:** All buyers pay a 4% transfer tax based on the purchase price, plus 10% VAT on new properties (though VAT may be included in the advertised price). Stamp duty costs $100-$200 regardless of property value.
**Annual Property Tax:** Properties valued above $25,000 USD are subject to 0.1% annual property tax based on assessed value, typically much lower than market value.
**Rental Income Tax:** Cambodia imposes 14% tax on gross rental income, which must be paid locally. Americans must also report this same rental income on their US tax returns, though they may be able to claim foreign tax credits to reduce double taxation.
**Capital Gains Tax:** Cambodia charges 20% tax on profits when selling property, with certain deductions allowed for improvement costs and transaction fees. Americans must also report capital gains to the IRS and pay US capital gains tax on the same profits.
The absence of a double taxation treaty means Americans cannot fully offset Cambodian taxes against US obligations, potentially resulting in higher overall tax burdens compared to other countries with tax treaties.
Can Americans get a mortgage in Cambodia, and if so, what are the typical rates and conditions?
Americans can obtain mortgages in Cambodia, but options are limited and terms are less favorable than typical US mortgages.
| Mortgage Aspect | Typical Terms | Requirements |
|---|---|---|
| Down Payment | 30-50% of purchase price | Higher than US standards |
| Interest Rates | 7-12% annually | Variable or fixed options |
| Loan-to-Value Ratio | 50-70% maximum | Conservative lending standards |
| Maximum Loan Amount | $150,000 typical limit | Varies by bank and borrower |
| Loan Term | Up to 20 years | Shorter than US mortgages |
| Income Requirement | $3,000+ monthly income | Proof required from US sources |
| Credit Check | Good credit history required | Both US and international |
Major lenders including RHB Bank, Canadia Bank, and Vattanac Bank offer foreigner mortgage programs, primarily for condominium purchases. Some international banks and developer financing programs provide additional options with varying terms.
The application process requires extensive documentation including passport, proof of income from US sources, property documentation, and credit history verification. Processing times typically range from 4-8 weeks, longer than domestic US mortgages.
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 or regions in Cambodia are most popular among Americans to settle, and which areas offer the best potential for rental income or capital appreciation?
Phnom Penh and Siem Reap are the most popular destinations for Americans, each offering distinct advantages for different investor profiles.
**Phnom Penh** attracts Americans seeking urban conveniences and strong rental markets. The capital city offers the best infrastructure, international amenities, medical facilities, and largest expat community. Rental yields range from 5-9% annually, with strong demand from business travelers, expats, and local professionals. The city's continued economic growth supports steady capital appreciation prospects.
**Siem Reap** appeals to Americans prioritizing lifestyle and tourism exposure. Home to Angkor Wat, the city offers a more relaxed atmosphere, lower cost of living, and significant tourism-driven rental demand. Rental yields range from 4-7%, with higher seasonal variation due to tourism patterns.
**Emerging markets** include Battambang for value-conscious investors, offering rental yields of 6-7% with property prices starting around $800-$1,200 per square meter. Kep and Kampot attract Americans interested in coastal living and natural settings, with rental yields reaching 7-10% in some developments.
**Sihanoukville** presents higher-risk, higher-reward opportunities due to massive Chinese investment and development, but market volatility makes it suitable only for experienced investors comfortable with significant risk.
What is the current breakdown of property prices across Cambodia's main cities and regions?
Property prices in Cambodia vary significantly by location, with Phnom Penh commanding the highest prices and rural areas offering the most affordable options.
| City/Region | Price per sqm (USD) | Rental Yields | Market Characteristics |
|---|---|---|---|
| Phnom Penh | $2,000-$3,500 | 5-9% | Most developed market, best amenities |
| Siem Reap | $1,200-$2,000 | 4-7% | Tourism-driven, expat-friendly |
| Sihanoukville | $1,500-$2,500 | Variable/High Risk | Coastal, volatile due to Chinese investment |
| Battambang | $800-$1,200 | 6-7% | Emerging market, good value |
| Kep/Kampot | $1,200-$2,000 | 7-10% | Nature appeal, growing expat interest |
| Rural Areas | $600-$1,000 | 8-12% | Higher yields, limited liquidity |
| Border Regions | N/A | N/A | Restricted for foreign ownership |
As of September 2025, Phnom Penh's central districts command premium prices, with luxury developments in areas like Daun Penh and Chamkarmon reaching the upper end of the price range. Secondary cities offer better value propositions but with correspondingly lower liquidity and fewer amenities.
Price trends show steady growth in established markets like Phnom Penh and Siem Reap, while emerging markets present opportunities for higher returns alongside increased risks. Currency stability tied to the US dollar provides price predictability for American investors.
What common mistakes or pitfalls do Americans make when buying property in Cambodia, and how can they avoid them?
Americans frequently make five critical mistakes that can result in significant financial losses or legal complications.
- **Purchasing ineligible properties:** Many Americans buy units that cannot legally be owned by foreigners, including ground-floor condominiums, properties without proper strata titles, or developments not registered correctly. **Solution:** Always verify strata title status and foreign ownership eligibility through qualified legal counsel before making any payments.
- **Falling victim to title fraud:** Fake ownership documents and fraudulent sellers are common in Cambodia's developing property market. **Solution:** Conduct thorough due diligence with licensed lawyers who can verify authentic ownership documents through official government records.
- **Using risky nominee arrangements:** Some Americans attempt to circumvent ownership restrictions by having Cambodian nationals hold property in their name through informal agreements. **Solution:** Avoid nominee structures entirely, as they provide no legal protection and frequently result in total loss of investment.
- **Ignoring double taxation obligations:** Many Americans fail to understand they must pay taxes to both Cambodia and the United States on rental income and capital gains. **Solution:** Consult qualified tax professionals familiar with both US and Cambodian tax laws before purchasing, and budget for total tax obligations.
- **Inadequate legal representation:** Attempting to save money by skipping legal services or using unqualified representatives often leads to much larger losses. **Solution:** Always hire licensed Cambodian lawyers with proven experience in foreign property transactions, even though fees may seem high relative to purchase prices.
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.
Americans can successfully invest in Cambodia's property market by understanding the clear legal framework and following proper procedures.
While restrictions limit ownership to strata-titled condominiums above ground floor, the market offers attractive opportunities in growing cities like Phnom Penh and Siem Reap, provided investors conduct proper due diligence and work with qualified legal professionals.
Sources
- InvestAsian - Cambodia Property Investment Guide
- EmerHub - Buying Property in Cambodia as a Foreigner
- BambooRoutes - Can Americans Buy Property in Cambodia
- IPS Cambodia - Foreign Land Ownership Guide
- CBRE Cambodia - How to Buy Property
- Global Property Guide - Cambodia Buying Guide
- Greenback Tax Services - Cambodia Expat Taxes
- Aparthotel - Financing Property in Cambodia
- Pacific Prime - Best Places to Live in Cambodia
- BambooRoutes - Average House Prices in Cambodia