Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Phnom Penh's property market is included in our pack
Buying property in Phnom Penh as a foreigner is legally possible but limited to strata-titled condominiums above the ground floor.
The process is faster than Western countries, taking 2-4 weeks for cash purchases, but requires careful due diligence due to higher risks and less regulatory oversight compared to developed markets.
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 legally purchase strata-titled condominiums above ground floor in Phnom Penh, with up to 70% foreign ownership allowed per building.
The buying process takes 2-4 weeks for cash purchases and involves a 4% transfer tax plus additional fees, but requires careful due diligence due to higher risks than Western markets.
| Property Type | Foreign Ownership | Key Restrictions |
|---|---|---|
| Condos (Above Ground Floor) | Allowed (Hard Title) | Max 70% foreign ownership per building |
| Land, Houses, Villas | Prohibited | Only long-term leases (50-99 years) |
| Ground Floor Units | Prohibited | No direct land contact allowed |
| Properties Near Border | Prohibited | Within 30km of national borders |
| Transfer Tax | 4% of value | Paid by buyer |
| Stamp Duty | $100-$200 | Per transaction |
| Timeline (Cash) | 2-4 weeks | With proper documentation |
What can foreigners actually buy in Phnom Penh and what types of property are off-limits?
Foreigners can legally purchase strata-titled condominium units above the ground floor in qualified buildings in Phnom Penh.
The Cambodian law allows foreign ownership of up to 70% of units in any single condominium building, meaning at least 30% must remain under Cambodian ownership. You can only buy units with hard title (national registration) or proper strata title - avoid any properties without clear legal documentation.
Foreigners are strictly prohibited from owning land, standalone houses, villas, shophouses, or any ground-floor properties that have direct contact with land. Any property within 30 kilometers of a national border is also off-limits to foreign buyers, regardless of the property type.
Long-term leasehold arrangements for 50-99 years are available for any property type, but this is not true freehold ownership. Some foreigners use nominee structures or Cambodian majority-owned companies as workarounds, but these carry significant legal and practical risks that could result in losing your investment.
As of September 2025, these restrictions remain firmly in place with no indication of policy changes.
How easy is the overall process compared to buying in a western country?
The Phnom Penh property buying process is faster but less regulated than Western countries, creating both advantages and risks.
For cash purchases of condominiums, the entire process typically takes 2-4 weeks compared to 6-12 weeks in most Western markets. The paperwork is relatively straightforward, and there are fewer bureaucratic layers to navigate through.
However, the regulatory oversight is significantly weaker than Western jurisdictions, meaning higher risks of title fraud, property disputes, and inconsistent enforcement of contracts. Due diligence becomes more crucial because you can't rely on the same level of government protection and standardized processes.
The informal nature of many transactions means you'll need to be more vigilant about verifying developer licenses, checking for outstanding debts on properties, and ensuring proper legal documentation. Off-plan purchases carry particularly high risks due to less robust consumer protection laws.
While the speed and simplicity can be appealing, the reduced regulatory framework means foreign buyers must take more personal responsibility for protecting their investments.
What are the step-by-step stages of buying a property from start to finish?
The Phnom Penh property purchase process follows a clear sequence that typically spans 2-4 weeks for cash buyers.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Property Search | Identify strata-titled condo units above ground floor | 1-2 weeks |
| 2. Due Diligence | Title check, developer licenses, legal status verification | 3-5 days |
| 3. Negotiation | Agree on price and terms, place deposit ($1,000-$5,000) | 1-2 days |
| 4. Legal Agreement | Sign Sale and Purchase Agreement (SPA), pay 10-30% deposit | 3-5 days |
| 5. Documentation | Submit passport, visa, marriage certificate, payment proof | 2-3 days |
| 6. Tax Payment | Pay 4% transfer tax and $100-$200 stamp duty | 1-2 days |
| 7. Registration | Register ownership with Ministry of Land Management | 5-7 days |
| 8. Title Receipt | Receive official strata title in your name | 1-2 days |
It's something we develop in our Cambodia property pack.
What documents are mandatory and which ones are optional to complete the purchase?
Foreign property buyers in Phnom Penh must provide six mandatory documents to complete any condominium purchase.
The mandatory documents include your passport (foreign identification), current visa (tourist or business visa is acceptable), marriage certificate if married, the Sale and Purchase Agreement (SPA), proof of payment for the property, and the seller's property title. All documents must be current and valid - expired visas or passports will delay the process.
Optional documents that can help smooth the process include proof of address from your home country, additional due diligence reports on the property or developer, and a power of attorney if you plan to complete the transaction remotely.
Marriage certificates are particularly important because they affect how the property title will be registered and can impact future inheritance or sale rights. Single buyers have a simpler documentation process.
Keep multiple copies of all documents, as various government offices and your lawyer will need them during the registration process.
Can you go through the entire buying process without being physically present in Cambodia?
Yes, you can complete a property purchase in Phnom Penh remotely using power of attorney, especially since recent digitalization efforts have streamlined online land registration.
The power of attorney must be properly notarized in your home country and often requires apostille certification or embassy legalization depending on your nationality. Your appointed representative (typically your lawyer or real estate agent) can then act on your behalf throughout the entire process.
Remote transactions typically take 4-6 weeks instead of 2-4 weeks due to additional coordination time and document transmission requirements. You'll need to transfer funds internationally and rely heavily on digital communication with your legal team.
The main risks of remote purchasing include limited ability to inspect the property personally, increased reliance on photos and virtual tours, and potential communication delays with your representatives. Legal advice becomes even more critical for remote deals.
Most established real estate agencies and law firms in Phnom Penh are experienced with remote transactions and can guide you through the digital requirements effectively.
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What are the typical mistakes and pitfalls foreigners make when buying property there?
Poor due diligence represents the most common and costly mistake foreign buyers make in Phnom Penh's property market.
Many foreigners fail to properly verify property titles, check for outstanding debts, or confirm developer licenses before signing agreements. This leads to disputes, unexpected costs, or even loss of the property. Always hire a qualified Cambodian lawyer to conduct thorough title searches and legal verification.
Attempting to buy land or houses through informal nominee arrangements is another major pitfall. While some agents promote these structures, they carry enormous legal risks and offer no real protection under Cambodian law. Stick to legally-owned condominiums above ground floor.
Location-based mistakes include choosing properties in flood-prone areas, areas with poor infrastructure, or buildings with questionable construction quality. Phnom Penh's rapid development means some areas lack proper drainage, reliable electricity, or good road access.
Short-term speculation and flipping strategies often fail because the Phnom Penh market can be illiquid, especially for individual units. Plan for medium to long-term ownership and account for ongoing property management costs if you're not residing there.
How reliable are real estate agents in Phnom Penh and how do you choose a good one?
Real estate agent quality varies significantly in Phnom Penh, making careful selection crucial for a successful property purchase.
1. **Check credentials and licenses**: Ensure agents are registered with relevant Cambodian real estate associations2. **Verify track record**: Ask for references from recent foreign clients and contact them directly3. **Assess communication skills**: Good agents provide regular updates and clear explanations in English4. **Review online presence**: Established agents typically have professional websites and positive online reviews5. **Meet in person or video call**: Professional agents will be willing to discuss their experience and local market knowledgeEstablished agencies with strong reputations tend to be more reliable than individual agents operating independently. Commission rates typically range from 1-3% and are often paid by the seller, not the buyer.
Red flags include agents pushing nominee structures for land purchases, reluctance to provide references, poor communication, or pressure to make quick decisions without proper due diligence time.
It's something we develop in our Cambodia property pack.
Does the legal system protect buyers and what precautions should you take before signing anything?
Cambodia's legal system provides basic protection for condominium buyers through strata title registration, but the framework is less formal and comprehensive than Western legal systems.
The Ministry of Land Management maintains official property records and issues legal titles that provide legitimate ownership rights. However, enforcement can be inconsistent, and dispute resolution processes may be slower and less predictable than in developed countries.
Essential precautions include hiring a qualified Cambodian lawyer to review all contracts before signing, verifying the seller's legal right to sell the property, and ensuring proper registration of your ownership with the Ministry of Land Management. Never rely on informal agreements or verbal promises.
Avoid nominee structures, shell companies, or any arrangement where you don't hold direct legal title to the condominium unit. These workarounds offer no legal protection and can result in complete loss of your investment.
Title insurance is not widely available in Cambodia, making your personal due diligence and legal representation even more critical for protecting your investment.
How long does it usually take from making an offer to owning the property?
Cash purchases in Phnom Penh typically complete within 2-4 weeks from offer acceptance to receiving the official title.
The timeline breaks down as follows: negotiation and initial deposit (1-3 days), due diligence and legal review (3-7 days), signing the Sale and Purchase Agreement with larger deposit (1-2 days), document preparation and submission (3-5 days), tax payments and government processing (5-10 days), and final title registration and transfer (2-3 days).
Financed purchases take longer, typically 4-8 weeks, due to additional bank approval processes, property valuations, and loan documentation requirements. Mortgage approvals for foreigners can be particularly time-consuming.
Off-plan purchases operate on different timelines tied to construction completion, which can range from 6 months to 3 years depending on the project status when you buy.
Delays commonly occur due to incomplete documentation, government office backlogs, or issues discovered during due diligence, so build some buffer time into your planning.
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 all the taxes, fees, and extra costs involved, and how do they break down?
Property purchase costs in Phnom Penh include several mandatory taxes and fees that typically add 6-8% to your total investment.
| Cost Type | Amount | Paid By |
|---|---|---|
| Transfer Tax | 4% of property value | Buyer |
| Stamp Duty | $100-$200 per transaction | Buyer |
| Lawyer Fees | $1,000-$2,000 | Buyer |
| Agent Commission | 1-3% of property value | Usually seller |
| Property Appraisal | $200-$500 | Buyer (if financing) |
| Annual Property Tax | 0.1% (properties over $25,000) | Owner |
| Capital Gains Tax | 20% (suspended until Dec 2024) | Seller |
The 4% transfer tax is calculated on the official transaction value and must be paid before title registration. Annual property tax applies only to properties valued above $25,000 and is relatively low at 0.1% of assessed value.
Additional costs may include bank transfer fees for international wire transfers, currency conversion charges, and property management fees if you plan to rent out the unit. Capital gains tax is currently suspended but may be reinstated.
Can you buy a property fully in cash, and is mortgage financing really available for foreigners, at what rates and under what conditions?
Cash purchases are fully allowed and represent the most common and straightforward method for foreigners buying property in Phnom Penh.
Mortgage financing for foreigners is available but limited, with stricter requirements than local buyers face. Several international and local banks offer mortgages to qualified foreign buyers, typically requiring 30-40% down payment compared to 10-20% for Cambodians.
Interest rates for foreign borrowers typically range from 6-9% annually, depending on the bank, loan term, and your financial profile. Maximum loan-to-value ratios are usually capped at 70% for foreigners, and loan terms rarely exceed 15-20 years.
Eligibility requirements include proof of stable income (often requiring 2-3 years of tax returns), substantial bank statements, existing relationship with the lending bank, and sometimes collateral beyond the property itself. Some banks require you to maintain a significant deposit account with them.
The mortgage approval process can take 4-8 weeks and may require a local guarantor or additional documentation that makes cash purchases more attractive for many foreign buyers.
Does buying property give any path to residency or citizenship, and where do foreigners tend to buy the most in Phnom Penh?
Buying property in Phnom Penh does not automatically grant residency rights or provide any direct path to Cambodian citizenship.
Property ownership is completely separate from visa and residency status in Cambodia. However, owning property may help strengthen applications for certain business or investment visa categories, though it's not a guarantee of approval.
Some visa extension programs exist for investors and business owners, but these are based on business operations and investment amounts, not property ownership. You'll need to maintain valid visa status through other means regardless of property ownership.
Foreigners most commonly purchase condominiums in BKK1 (Boeng Keng Kang 1), which offers modern amenities and expatriate-friendly infrastructure. Tonle Bassac area is popular for upscale developments near the riverside. Daun Penh provides central location with good access to business districts.
The Wat Phnom area attracts buyers seeking cultural proximity and established neighborhoods, while the Russian Market (Toul Tom Poung) area appeals to those wanting local market access and authentic Phnom Penh living experience.
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.
For a secure and successful property purchase in Phnom Penh, conduct thorough due diligence, retain qualified legal representation, and focus only on legally-owned strata-titled condominiums above ground floor.
Avoid informal nominee arrangements and plan for ongoing property management, especially if you're purchasing as a remote investment property.
Sources
- Emerhub - Buying Property in Cambodia as a Foreigner
- BambooRoutes - Cambodia Real Estate for Foreigners
- CBRE Cambodia - Real Estate Law Guide
- Multilaw - Real Estate Guide Cambodia
- IPS Cambodia - Property Ownership Guide
- RealEstate.com.kh - Foreign Property Ownership
- CBRE Cambodia - How to Buy Property
- ADA Engineering - Foreign Investor Mistakes
- IPS Cambodia - Expat Property Rights
- RealEstate.com.kh - Sales Purchase Agreement Guide