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
Buying property in Cambodia as a foreigner involves navigating unique legal restrictions and opportunities that differ significantly from Western markets.
Cambodia allows foreigners to purchase strata-titled condominiums above the ground floor but prohibits land and house ownership, making the process streamlined for eligible properties yet restrictive compared to most Western countries where foreigners face fewer limitations.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 buy condominiums above ground floor but cannot purchase land or houses directly.
The process typically takes 2-8 weeks with a 4% transfer tax and requires physical presence at the cadastral office.
| Property Type | Foreign Ownership | Key Requirements |
|---|---|---|
| Strata-titled Condos (Above Ground Floor) | Allowed | Valid passport, visa, translated documents |
| Land/Houses | Prohibited | Must use company structure (51% Cambodian) |
| Ground Floor Units | Prohibited | N/A |
| Commercial Buildings | Limited | Special company structuring required |
| Long-term Leases | Allowed | 50-99 year terms available |
How easy is it compared to buying a house in Western countries?
Buying property in Cambodia is significantly more restrictive for foreigners than in Western countries like the US, Canada, UK, or Australia.
In Western countries, foreigners can typically purchase almost any type of property including land, houses, and condominiums, provided they comply with registration and tax requirements. Cambodia's legal framework limits foreigners to strata-titled condominium units above the ground floor only.
The transaction process itself is actually faster in Cambodia, typically taking 2-8 weeks compared to 6-12 weeks in most Western markets. However, this speed comes with weaker consumer protections and oversight systems, requiring buyers to exercise significantly more caution throughout the process.
Cambodia's streamlined approach for eligible condo purchases can be more straightforward than complex Western systems, but the limited property types available and weaker legal protections make it a trade-off between speed and security.
As of September 2025, the process remains more accessible for condos than land-based investments, making it suitable for urban investors but limiting options for those seeking houses or land ownership.
What types of property can foreigners actually buy, and what's off-limits?
Foreigners in Cambodia can legally purchase strata-titled condominium units above the ground floor in buildings completed after 2010, with up to 70% of units per building available to foreign buyers.
Eligible properties include condominiums on the second floor and above, office spaces with strata titles, and certain commercial units within mixed-use developments. These properties must have proper strata titles and meet specific regulatory requirements established by the Cambodian government.
Completely off-limits to foreign ownership are freehold or leasehold land, standalone houses, villas, any ground-floor units, and commercial buildings without special company structures. This restriction stems from Cambodia's constitution, which reserves land ownership for Cambodian citizens only.
Alternative ownership structures include long-term leases ranging from 50-99 years, establishing a Cambodian company with minimum 51% local ownership, or using nominee arrangements, though these carry additional risks and costs.
It's something we develop in our Cambodia property pack.
Can you buy in your own name, or do you need a company or local partner?
For eligible strata-titled condominiums, foreigners can purchase and hold title directly in their own name without requiring a company or local partner.
The ownership process for condos is straightforward - your name appears on the official title deed, and you maintain full legal ownership rights within the parameters of Cambodian law. This direct ownership model applies only to qualifying condominium units above ground floor level.
For land purchases or houses, foreigners must establish a Cambodian company with minimum 51% Cambodian ownership or use nominee/trust arrangements. Company formation requires local partners, registered capital, and ongoing compliance obligations that add complexity and cost to the transaction.
Nominee arrangements involve local individuals holding legal title on behalf of foreign investors, but these structures carry significant legal risks including potential loss of property and limited legal recourse if disputes arise.
Most legal experts recommend sticking to direct condo ownership rather than attempting complex workarounds for prohibited property types.
What are the exact documents you need to prepare and submit?
| Document Type | Specific Requirement | Additional Notes |
|---|---|---|
| Valid Passport | Original with minimum 6 months validity | Must show clear photo and signature pages |
| Current Visa | Tourist or business visa | Visa on arrival acceptable for initial steps |
| Proof of Marital Status | Marriage certificate if applicable | Must be apostilled if from overseas |
| Sale and Purchase Agreement | Signed contract between parties | Must specify strata title and unit details |
| Proof of Payment/Deposit | Bank transfer receipts or payment evidence | Required for each payment milestone |
| Khmer Translations | All foreign documents translated | Only Khmer characters appear on final title |
| Power of Attorney (if applicable) | Notarized authorization for representatives | Required if not attending in person |
Do you have to be physically in Cambodia to complete the process, or can it be done remotely?
Physical presence is required at the cadastral office for the final title transfer, thumbprint verification, and signature completion - remote completion is generally not possible for the closing process.
The initial stages including property search, reservation agreements, and document preparation can be handled remotely through licensed agents and legal representatives. Many preliminary steps are conducted online or through trusted intermediaries.
However, Cambodian law mandates that both buyer and seller must physically appear at the Ministry of Land Management's cadastral office to provide thumbprints and signatures for the official title transfer. This requirement cannot be waived or completed remotely.
Using a power of attorney or legal representative is possible but requires extensive documentation, notarization, and adds legal complexity to the transaction. Most buyers find it more straightforward to plan a trip to Cambodia for the closing process.
The physical presence requirement typically adds 1-2 days to your Cambodia visit, as the cadastral office operates on specific schedules and may require multiple visits depending on document processing times.
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What is the typical step-by-step process from finding a property to owning it?
The property acquisition process in Cambodia follows eight distinct steps from initial search to final ownership.
- Property Search and Identification: Find suitable strata-titled condominium units through reputable agents, developers, or property portals, focusing on buildings completed after 2010 with proper strata titles.
- Due Diligence Investigation: Verify property titles, research developer credentials, inspect physical condition, review building approvals, and confirm legal compliance before making offers.
- Reservation Agreement: Sign preliminary reservation agreement and pay initial deposit ranging from $1,000-$5,000 to secure the property while completing documentation.
- Sale and Purchase Agreement: Execute comprehensive SPA contract and pay substantial deposit typically ranging from 10-30% of purchase price, establishing legal commitment from both parties.
- Document Submission and Tax Payment: Submit all required documentation to authorities, pay 4% transfer tax, and initiate registration process with the Ministry of Land Management.
- Cadastral Office Attendance: Both buyer and seller must physically appear at the cadastral office to provide thumbprints, signatures, and complete official title transfer procedures.
- Title Deed Receipt: Receive official strata title deed showing foreign ownership, confirming legal completion of the property transfer process.
- Ongoing Compliance: Ensure compliance with annual property tax obligations (0.1% on values above $25,000) and any required rental tax if leasing the property.
How reliable are real estate agents, and how do you choose a trustworthy one?
Real estate agents in Cambodia vary significantly in reliability and professionalism, making careful selection crucial for successful property transactions.
Trustworthy agents typically hold proper licenses, maintain established offices, demonstrate proven track records, and receive positive reviews from previous clients. Licensed agencies affiliated with Cambodia's leading property portals and chambers of commerce generally offer higher reliability standards.
Red flags include agents pushing nominee arrangements without legal oversight, pressuring quick decisions without due diligence periods, requesting unusual payment methods, or lacking proper company registration and credentials.
Verify agent credentials by checking company registration status, confirming physical office locations, reviewing client testimonials, and ensuring transparent commission structures. Reputable agents clearly explain legal restrictions and never promise impossible outcomes for foreign buyers.
It's something we develop in our Cambodia property pack.
Will the legal system protect you if something goes wrong, and what legal precautions should you take?
Cambodia's legal system provides basic protections for property owners but lacks the comprehensive consumer safeguards and transparent dispute resolution mechanisms found in Western countries.
The legal framework is improving under ongoing reforms, but property buyers must take extensive precautions including hiring qualified lawyers to verify titles, oversee contracts, and ensure proper payment channels throughout the transaction process.
Essential legal precautions include conducting thorough title searches, verifying no existing liens or disputes, researching developer credibility and financial stability, and ensuring all payments flow through proper legal channels rather than informal arrangements.
Always engage a reputable local lawyer with property law expertise to review all documentation, explain legal implications, and provide ongoing support if issues arise. Legal fees typically range from $1,000-$2,000 but provide crucial protection.
Document everything meticulously, maintain copies of all agreements and payments, and ensure compliance with all registration requirements to strengthen your legal position if disputes occur.
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.
What are the common mistakes foreigners make when buying, and how can you avoid them?
The most serious mistake foreigners make is attempting to buy prohibited land or houses through risky nominee arrangements without proper legal advice, potentially resulting in complete property loss.
- Skipping Title Verification: Failing to conduct comprehensive title searches and property registration checks, leading to purchases of disputed or encumbered properties.
- Rushing Due Diligence: Accepting pressure for quick closings without adequate investigation of developer credentials, building approvals, or market conditions.
- Informal Payment Methods: Entrusting large sums to unverified parties or using cash payments without proper receipts and legal documentation.
- Ignoring Legal Requirements: Attempting shortcuts around mandatory procedures like cadastral office attendance or document translation requirements.
- Off-Plan Risks: Purchasing unfinished developments without researching developer track records, financial stability, or completion guarantees.
Avoid these mistakes by maintaining patience throughout the process, never compromising on legal procedures regardless of time pressure, and working only with licensed professionals who prioritize compliance over speed.
How much time does the whole process usually take from start to finish?
Cash purchases in Cambodia typically require 2-4 weeks from initial agreement to final title transfer, making it faster than most Western property markets.
Transactions involving financing extend the timeline to 4-8 weeks due to additional bank approval processes, loan documentation requirements, and coordination between multiple parties including lenders and legal representatives.
The timeline breakdown includes 3-5 days for initial reservation and deposit, 1-2 weeks for due diligence and documentation preparation, 1-2 weeks for government processing and approvals, and 2-3 days for final cadastral office procedures.
Factors that can extend timelines include incomplete documentation requiring corrections, delays in government office processing, scheduling conflicts for cadastral office attendance, or complications with developer credentials and building approvals.
Plan for potential delays by allowing buffer time in your schedule, particularly if coordinating the closing with international travel or business commitments that cannot be easily rescheduled.
What are all the taxes, fees, and hidden costs involved, with a clear breakdown?
| Cost Category | Amount/Rate | Timing |
|---|---|---|
| Transfer Tax | 4% of property's assessed value | At closing |
| VAT (New Properties) | 10% of purchase price | Included in purchase price |
| Legal Fees | $1,000-$2,000 | Throughout process |
| Stamp Duty | $100-$200 | At registration |
| Agent Commission | 1-3% (usually seller pays) | At closing |
| Appraisal Fees | $200-$500 | Before closing |
| Annual Property Tax | 0.1% on values above $25,000 | Yearly ongoing |
| Capital Gains Tax | 20% on profit (currently suspended) | Upon sale |
Can foreigners get a mortgage, what are the usual rates and conditions, and what tips help improve your chances?
Mortgages for foreigners are available but limited, with most banks offering loan-to-value ratios of 50-70% and interest rates ranging from 7-12% annually.
Banking requirements include strong financial documentation, proof of local income or significant assets, and sometimes a Cambodian co-borrower to strengthen the application. International banks like ANZ and local institutions like Acleda Bank offer foreign borrower programs with varying terms.
Qualification criteria typically require minimum annual income of $50,000-$100,000, substantial down payment capacity, clean credit history, and demonstrated connection to Cambodia through business or long-term residence plans.
Tips to improve approval chances include establishing a local bank account before applying, demonstrating ongoing investment or business interests in Cambodia, providing comprehensive financial statements, and working with mortgage brokers familiar with foreign borrower requirements.
Most banks prefer financing established developments over off-plan purchases, and some institutions limit lending to specific geographic areas like Phnom Penh or established resort destinations.
Is buying with cash an option, and how common is it?
Cash purchases are not only common but represent the preferred transaction method for most foreign property buyers in Cambodia due to limited mortgage availability and faster processing times.
Approximately 70-80% of foreign property purchases are completed with cash, eliminating financing complications, reducing transaction timelines, and strengthening negotiating positions with developers and sellers.
Cash buyers benefit from potential price discounts, faster closing schedules, simplified documentation requirements, and greater flexibility in property selection without lending restrictions on specific developments or locations.
However, cash purchases require careful attention to payment security, proper receipt documentation, and ensuring funds transfer through legitimate banking channels rather than informal cash exchanges that lack legal protections.
It's something we develop in our Cambodia property pack.
Does owning property lead to residency or even citizenship?
Owning property in Cambodia does NOT provide any pathway to residency or citizenship - there is no property-for-residency program or Golden Visa option available.
Property ownership and immigration status are completely separate legal matters in Cambodia, with residency requirements based on visa categories, work permits, business investments, or family connections rather than real estate ownership.
Foreign property owners must maintain valid visas through other means such as business visas, retirement visas, or work permits, regardless of their property ownership status or investment amounts.
Long-term residents can apply for permanent residence through separate immigration procedures that require continuous legal residence, tax compliance, and significant time commitments, but property ownership provides no advantage in this process.
Investors seeking residency benefits should explore business visa options or investment programs unrelated to real estate ownership rather than expecting property purchases to influence immigration status.
Where do most foreigners prefer to buy property in Cambodia, and why?
Phnom Penh dominates foreign property purchases due to superior infrastructure, international amenities, business opportunities, and the largest selection of strata-titled condominiums meeting foreign ownership requirements.
Siem Reap attracts lifestyle buyers and tourism investors seeking properties near Angkor Wat, with growing development of international-standard condominiums and established rental markets serving tourists and expats.
Sihanoukville appeals to buyers interested in beach properties and casino developments, though recent changes in Chinese investment patterns have created market volatility requiring careful timing and location selection.
Phnom Penh offers the most stable investment environment with consistent rental demand from diplomats, international business professionals, and NGO workers, plus the best legal infrastructure for property transactions.
Secondary cities like Battambang and Kampot are emerging markets with limited foreign-eligible inventory but potentially higher growth prospects for early investors willing to accept higher risk levels.
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.
Buying property in Cambodia requires careful navigation of legal restrictions and market conditions that differ significantly from Western countries.
While the process can be faster and more streamlined for eligible condominiums, the limited property types available and weaker consumer protections demand thorough due diligence and professional legal guidance throughout the transaction.
Sources
- IPS Cambodia - Property Ownership Guide for Foreigners
- BambooRoutes - Cambodia Real Estate for Foreigners
- RealEstate.com.kh - Buying Condo Guide
- Emerhub - Buying Property in Cambodia
- Offshore in Asia - Foreigners Guide
- CBRE Cambodia - How to Buy Property
- Expat Life Cambodia - Property Buying Guide
- LinkedIn - Foreigners Guide to Cambodia Property
- RealEstate.com.kh - Strata Title Guide
- InvestAsian - Cambodia Property Investment