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
If you're considering buying property in Cambodia as a foreigner in 2025, you're probably wondering what's allowed and what's not.
The good news is that Cambodia offers opportunities for foreign property ownership, but there are specific rules you need to understand. This guide answers the 12 most important questions about buying property in Cambodia as a foreigner, focusing on residential real estate for investment or personal use.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.
Cambodia allows foreigners to own condominiums above the ground floor with a maximum of 70% foreign ownership per building, but prohibits direct land ownership.
Property prices range from $1,000-$3,500 per square meter with rental yields averaging 5-9%, and the market is expected to grow 5-10% in 2025.
| Topic | What Foreigners Can Do | Key Rules |
|---|---|---|
| Land Ownership | ❌ Cannot own directly | Only through trusts, companies, or long-term leases |
| Condo Ownership | ✅ Yes, with restrictions | Above ground floor only, maximum 70% foreign ownership per building |
| Villas/Townhouses | ❌ Cannot own directly | Require complex legal structures or leases |
| Visa Requirements | ✅ No visa needed to buy | Valid passport sufficient for purchase |
| Financing | ✅ Limited options available | 30-70% down payment required, 7-10% interest rates |
| Transfer Tax | 4% of property value | Plus additional fees totaling 5-6% |
| Rental Yields | 5-9% average | Higher in tourist areas like Siem Reap |
| Price Growth 2025 | 5-10% expected | Driven by tourism recovery and urbanization |
| Hottest Markets | Phnom Penh, Siem Reap, Sihanoukville | BKK1, Wat Bo, and Otres Beach leading |
| Legal Support | Strongly recommended | Complex process requires local expertise |
Can foreigners legally own property in Cambodia in 2025?
Yes, foreigners can legally own certain types of property in Cambodia, but with important restrictions.
The Cambodian Constitution prohibits foreigners from owning land directly. However, you can own condominium units above the ground floor in buildings that have strata titles. This has been the law since 2010 and remains unchanged in 2025.
The key restriction is that foreign ownership cannot exceed 70% of the total units in any single building. This means if a condo building has 100 units, only 70 can be owned by foreigners. Once that limit is reached, the remaining 30 units can only be sold to Cambodian citizens.
Foreign investors can also access property through long-term leases (up to 50 years, renewable) or by establishing Cambodian-majority companies, though these options come with their own complexities.
It's crucial to verify that any condominium you're interested in has proper strata title certification before proceeding with a purchase.
What types of properties can foreigners buy compared to Cambodian citizens?
The distinction between what foreigners and Cambodian citizens can purchase is quite clear-cut in Cambodia's property law.
Foreigners can buy condominiums above the ground floor (2nd floor and up), commercial units in co-owned buildings such as offices and retail spaces, and properties through long-term leases of up to 50 years that are renewable. They can also acquire properties indirectly through Cambodian-majority companies or trust structures.
However, foreigners cannot buy land in any form, ground floor or basement units in condominiums, villas or townhouses unless through complex legal structures, or any property that touches the ground directly. These restrictions are designed to preserve land ownership for Cambodian citizens.
Cambodian citizens face none of these restrictions. They can buy any property type, including land, ground floor units, and there's no 70% quota limitation for them in condo buildings. This gives locals significant advantages in the property market, particularly for landed properties and prime ground-floor commercial spaces.
For foreign investors, condominiums remain the most straightforward and secure investment option.
Do I need a visa or residency to buy property in Cambodia?
No visa or residency is required to purchase property in Cambodia as a foreigner.
You don't need a visa, residency permit, or even be physically present in Cambodia to buy property. A valid passport is the main requirement for most property transactions. You can complete purchases while on a tourist visit or even from abroad through a power of attorney.
For those interested in long-term residency, Cambodia offers the CM2H (Cambodia My Second Home) visa program. This requires a $50,000 investment in government-approved property and provides a 10-year renewable residence permit. However, this is entirely optional and not required for property ownership.
Many foreign investors successfully purchase and manage their Cambodian properties while living abroad, using local property management companies to handle day-to-day operations.
The flexibility of Cambodia's property ownership rules makes it particularly attractive for international investors who may not spend significant time in the country.
What's the exact step-by-step process to buy property as a foreigner?
The property buying process in Cambodia follows a clear sequence that typically takes 30-60 days to complete.
First, select a condominium unit above ground floor in a building with proper strata title certification, ensuring it meets foreign ownership requirements. Next, conduct thorough due diligence by verifying the developer's track record, checking building permits, and confirming the property has valid strata title. Then negotiate the price and terms with the seller, keeping in mind that many properties are open to negotiation.
Sign the Sales & Purchase Agreement (SPA), which is usually provided in both Khmer and English, including payment schedule and conditions. Make the initial payment, typically 10-30% deposit as specified in the agreement. Prepare your documents including passport, proof of funds, and obtain a Tax Identification Number (TIN) if required.
Pay the 4% property transfer tax and other associated fees totaling approximately 5-6% of the purchase price. Register the transfer at the Ministry of Land Management, Urban Planning, and Construction (MLMUPC) to make it official. Complete the remaining payments according to the agreement schedule. Finally, receive the new strata title in your name and take possession of your property.
It's something we develop in our Cambodia property pack.
Do I need a lawyer or can I handle everything myself?
While technically possible to manage the purchase yourself, hiring a qualified local lawyer is strongly recommended for foreign buyers.
The Cambodian property market has complexities that make professional help invaluable. Documents are primarily in Khmer language, requiring translation and careful interpretation. Due diligence requires local knowledge of developers, building standards, and market conditions. Contract terms need careful review to protect your interests, especially payment schedules and completion clauses.
Property laws can be complex with nuances that aren't immediately apparent to foreigners. Avoiding common scams requires expertise and knowledge of local practices. A qualified lawyer can spot red flags that might not be obvious to foreign buyers.
Most successful foreign buyers use both a reputable real estate agent and a lawyer. The lawyer typically charges $1,000-$2,000 for a standard condo purchase, which is a small price for peace of mind and legal protection. They'll ensure all documents are legitimate, the property has clear title, and your interests are protected throughout the transaction.
Going solo might save money initially but could expose you to significant risks and potential losses.
What documents are required and who handles them?
The documentation process for buying property in Cambodia involves both parties providing specific paperwork.
| Documents You Provide | Documents Seller Provides | Who Handles Process |
|---|---|---|
| Valid passport | Original title deed | Real estate agent coordinates |
| Visa (if you have one) | Certificate of land tax payment | Lawyer reviews all documents |
| Tax Identification Number (TIN) | Property registration certificate | MLMUPC processes registration |
| Proof of funds | Building permits | Agent/lawyer submits to authorities |
| Power of attorney (if remote) | Strata title documentation | You sign final documents |
Your real estate agent typically coordinates document collection and ensures everything is ready for the transaction. Your lawyer reviews all documents for accuracy, legality, and completeness before you proceed. The actual registration happens at the Ministry of Land Management, Urban Planning, and Construction (MLMUPC), where your lawyer or agent submits all documents for the official transfer.
Keep copies of all documents for your records and future reference.
Where do foreigners typically buy property and what areas are hot in 2025?
Cambodia's property market in 2025 shows distinct patterns of foreign investment concentrated in key urban and tourist areas.
Phnom Penh remains the top choice for foreign buyers, with BKK1 as the premium district featuring prices of $2,000-$2,650 per square meter but offering strong rental demand from expats and businesses. Tonle Bassac provides riverside luxury popular with diplomatic and expat communities. Toul Kork offers more affordable options at $1,200-$1,500 per square meter with good infrastructure and local amenities. Chamkar Mon features a central location with mixed residential and commercial opportunities, while Chroy Changvar is an emerging area with new developments and future potential.
Siem Reap is experiencing strong growth driven by tourism recovery. The Wat Bo area shows particularly strong tourism-driven demand with impressive 7-9% rental yields. Average prices range from $1,000-$1,500 per square meter, making it more affordable than Phnom Penh's prime areas.
Sihanoukville attracts coastal investment seekers, with Otres Beach commanding prime beachfront condo prices of $2,500-$3,500 per square meter. While offering rapid price appreciation, this market carries higher risk due to its dependency on tourism and development cycles.
Emerging areas in 2025 include Kampot and Kep for affordable coastal options with growing tourism, Bavet as a border town benefiting from increased trade, and 7 Makara as Phnom Penh's expansion zone.
What are current property prices and rental yields?
Cambodia's property market offers attractive rental yields that significantly outperform many regional markets.
The national average rental yield in Cambodia stands at 7.4% as of June 2025, considerably higher than neighboring countries like Thailand or Vietnam. This makes Cambodia particularly attractive for investors seeking rental income rather than just capital appreciation.
| Location | Price per sqm (USD) | 1-Bedroom Rent (USD/month) | Rental Yield |
|---|---|---|---|
| Phnom Penh - BKK1 | $2,000-$2,650 | $800 | 5.0-8.5% |
| Phnom Penh - Toul Kork | $1,200-$1,500 | $500 | 6.0-7.0% |
| Siem Reap - Wat Bo | $1,000-$1,500 | $598 | 7.0-9.0% |
| Sihanoukville - Otres | $2,500-$3,500 | $1,000+ | 6.5-8.0% |
| Kampot/Kep | $1,000-$1,500 | $400-$600 | 6.6-8.8% |
Siem Reap offers the best yields due to strong tourist demand and relatively lower purchase prices. Phnom Penh's BKK1 district has lower yields but offers better capital appreciation potential and more stable long-term tenants. Coastal areas provide a mix of short-term holiday rentals and longer-term expat tenancies.
These yields assume professional management and good property maintenance.
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.
Can foreigners get mortgages in Cambodia?
Foreigners can access mortgage financing in Cambodia, though options are more limited than for local buyers.
Several banks offer mortgages to foreigners including RHB Cambodia, Canadia Bank, Vattanac Bank, Public Bank Berhad, Advanced Bank of Asia, and J Trust Royal Bank. However, terms are less favorable than those offered to Cambodian citizens.
Typical mortgage terms for foreigners include down payments of 30-70%, much higher than the 10-20% often available to locals. Interest rates range from 7-10% annually, which is competitive regionally but higher than developed markets. Loan terms extend up to 20 years, though shorter terms may offer better rates. Required documents include passport, proof of income, employment contract, and sometimes a local guarantor.
Many developers also offer in-house financing with more flexible terms, especially for off-plan purchases. These arrangements often require lower down payments but may have higher interest rates or shorter repayment periods.
It's something we develop in our Cambodia property pack.
What are all the taxes and fees when buying and owning property?
Understanding the complete cost structure is essential for budgeting your Cambodia property investment.
One-time purchase costs include a transfer tax of 4% of the property value, stamp duty of $100-$200, legal fees of $1,000-$2,000, and agent commission of 1-3% (usually paid by the seller). Total closing costs typically amount to 5-6% on top of the purchase price.
Annual ownership costs consist of property tax at 0.1% of value above $25,000, condo management fees averaging $1 per square meter per month, and utilities which are separate from management fees. These ongoing costs are relatively low compared to many other countries.
If you rent out the property, additional costs include rental income tax of 10-14% on gross rental income and property management fees of 10-15% of rent if using a professional company. Despite these taxes, the high rental yields in Cambodia often make it worthwhile.
Good news for 2025: First-time buyers of properties under $210,000 are exempt from stamp duty, saving several hundred dollars on their purchase.
What mistakes do foreigners commonly make when buying in Cambodia?
Avoiding common pitfalls can save foreign buyers significant money and stress.
The biggest mistake is skipping due diligence by not verifying the developer's track record, building permits, or strata title validity. This can lead to buying in buildings that don't actually qualify for foreign ownership or from developers who may not complete the project.
Using nominee structures for land where a Cambodian "owns" land for you is both illegal and extremely risky. You have no legal recourse if the nominee decides to claim the property as their own. Some foreigners buy in non-strata buildings, particularly older constructions that don't qualify for foreign ownership, rendering their purchase invalid.
Ignoring location fundamentals like flood risk, infrastructure plans, or neighborhood development can result in poor investment performance. Cambodia's monsoon season can cause significant flooding in certain areas, and infrastructure development can dramatically change neighborhood dynamics.
Many expect quick flips, but the Cambodia market rewards long-term investors, not speculators. Transaction costs and market liquidity make short-term trading unprofitable. Foreigners also often underestimate ongoing management needs if they don't live in Cambodia full-time.
Working with reputable professionals and taking time to understand the market prevents most of these mistakes.
What's the market outlook for tourism, rentals, and price growth?
Cambodia's property market outlook for the remainder of 2025 shows strong fundamentals across multiple sectors.
Tourism recovery is exceeding expectations with international arrivals surpassing pre-COVID levels in 2025, particularly in Siem Reap and coastal areas. This drives strong demand for short-term rentals and supports property values in tourist zones. The government's continued investment in tourism infrastructure, including airport upgrades and improved roads, supports this growth.
The rental market shows particular strength with a growing expat population in Phnom Penh, digital nomads choosing Siem Reap and coastal towns, urbanization driving demand for city apartments, and national rental yields remaining high at 7.4%. This combination creates multiple tenant pools for property investors.
Property prices across Cambodia are expected to rise 5-10% in 2025, with Phnom Penh prime areas seeing 5-7% growth, Siem Reap tourist zones experiencing 7-10% growth, coastal developments achieving 8-10% growth, and emerging areas potentially exceeding 10% though with higher risk.
Key growth drivers include major infrastructure projects, continued foreign investment particularly from China and Singapore, a young population driving urbanization, and government support for the property sector. However, investors should monitor potential oversupply in some Phnom Penh condo segments and global economic uncertainties.
It's something we develop in our Cambodia property pack.
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Conclusion
As of June 2025, foreigners can successfully invest in Cambodian property by focusing on condominiums above the ground floor. While you can't own land directly, the condo market offers strong rental yields (5-9%), reasonable price appreciation (5-10% expected), and a straightforward legal framework.
The keys to success are choosing the right location (Phnom Penh's BKK1, Siem Reap's Wat Bo, or Sihanoukville's beaches), working with qualified professionals (lawyer and agent), and taking a long-term investment view. With tourism rebounding strongly and urbanization continuing, Cambodia's property market offers attractive opportunities for foreign investors willing to follow the rules and do proper due diligence.
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 understanding specific regulations, but the market offers compelling opportunities for those who navigate it properly.
Success comes from focusing on permitted property types, working with qualified professionals, and maintaining realistic expectations about the investment timeline and potential returns in this emerging market.
Sources
- Emerhub - Buying Property in Cambodia as a Foreigner
- Bamboo Routes - Cambodia Real Estate Foreigner Tips
- Cambodia Property Development - A European's Guide to Buying Property in Cambodia
- Kim Thong Hak - Can Foreigners Buy Property in Cambodia
- Sopheap Cambo Law - Foreign Ownership of Land and Buildings in Cambodia
- IPS Cambodia - Property Ownership Guide for Foreigners
- CBRE Cambodia - How to Buy Property in Cambodia
- Global Property Guide - Cambodia Buying Guide
- Real Estate Cambodia - 50 Questions Answers Real Estate Investment Cambodia 2025
- Global Property Guide - Cambodia Price History
- Global Property Guide - Cambodia Rent Yields
- Dabest Properties - Guide to Foreign Property Ownership in Cambodia