How to invest in property in Cambodia?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cambodia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Cambodian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Phnom Penh, Siem Reap, and Sihanoukville. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Cambodia and what restrictions apply?

Foreigners can legally own certain types of property in Cambodia, but significant restrictions limit what you can purchase directly.

As of September 2025, Cambodia's Foreign Ownership Law allows non-Cambodians to own strata-titled properties, which means condominiums and apartments above the ground floor level. However, you cannot own land outright or any property that sits directly on land, including standalone houses, villas, or shophouses.

The core restriction centers on land ownership, which remains exclusively reserved for Cambodian citizens and entities with at least 51% local ownership. This means any landed property - from residential villas to commercial buildings with land - is off-limits for direct foreign ownership.

Some foreigners attempt to circumvent these restrictions through nominee arrangements, where they use a Cambodian citizen as a front to hold title, or by forming Cambodian companies with local partners holding majority stakes. However, these methods carry substantial legal and financial risks, as the nominee technically owns the property and could theoretically claim full ownership.

The government strictly enforces the 70% foreign ownership cap per building for condominiums, meaning once foreign ownership reaches this threshold in a specific building, no additional units can be sold to non-Cambodians.

What types of property can foreigners buy and what's off-limits?

Foreign buyers have access to a specific category of properties while facing absolute restrictions on others.

Property Type	Foreign Purchase Allowed	Specific Conditions
Condominiums (2nd floor and above)	Yes	Must have strata title, building cannot exceed 70% foreign ownership
Apartments in mixed-use buildings	Yes	Only units above ground floor with proper strata documentation
Ground floor condos/apartments	No	Considered connected to land, therefore prohibited
Landed houses and villas	No	Includes all standalone residential properties on land
Shophouses	No	Commercial properties on land are restricted
Agricultural land	No	Strictly prohibited under all circumstances
Industrial/commercial land plots	No	Only accessible through risky nominee or company structures

Do you need to be physically present in Cambodia to complete the purchase or can it be done remotely?

You can complete a Cambodian property purchase without being physically present, though visiting in person offers significant advantages.

Remote purchases are legally possible through power of attorney arrangements, where you authorize a trusted representative - typically your lawyer or a family member - to act on your behalf during the transaction process. Most documentation can be handled digitally, including signing contracts, transferring funds, and completing registration procedures.

However, property experts strongly recommend making at least one in-person visit before finalizing your purchase. Physical inspection allows you to verify the property's actual condition, location, and compliance with advertised specifications. Many buyers discover significant discrepancies between online listings and reality.

Meeting your lawyer and real estate agent face-to-face also helps establish trust and ensures clear communication throughout the process. Local market nuances and potential issues are often better understood through direct conversation with professionals on the ground.

If you choose the remote route, ensure your power of attorney document is properly notarized in your home country and authenticated by the Cambodian embassy or consulate before use.

What is the step-by-step process for buying property in Cambodia from start to finish?

The Cambodian property purchase process follows a structured sequence that typically takes 30-60 days to complete.

**Step 1: Property Search and Due Diligence (1-2 weeks)** - Research available properties through licensed agents, verify strata titles, confirm legal status, and investigate the developer's track record. Check that foreign ownership hasn't exceeded 70% in your target building.

**Step 2: Preliminary Agreement (1-3 days)** - Sign a reservation or deposit agreement, typically requiring 2-10% of the purchase price as a good faith deposit. This document should specify the property details, price, payment schedule, and completion timeline.

**Step 3: Legal Review and Sales Purchase Agreement (1-2 weeks)** - Your lawyer drafts or reviews the comprehensive sales and purchase agreement, covering payment terms, title transfer procedures, and completion conditions. Both parties sign this binding contract.

**Step 4: Payment Execution (1-7 days)** - Transfer funds according to the agreed payment schedule, typically through international bank wire transfer to the developer's or seller's account. Keep detailed records of all transactions for tax purposes.

**Step 5: Title Transfer and Registration (1-2 weeks)** - Complete the official title transfer at the local Land Office, pay applicable taxes and fees, and register the property in your name. Your lawyer should handle most bureaucratic procedures.

**Step 6: Final Documentation (3-5 days)** - Receive your official strata title certificate, property tax registration, and all relevant legal documents. Ensure all paperwork is properly filed and stored securely.

What documents and approvals are mandatory, and which are optional?

Document requirements for Cambodian property purchases fall into mandatory and optional categories, with proper documentation being crucial for legal ownership.

**Mandatory Documents:**- Valid passport with appropriate visa status- Sales and Purchase Agreement (legally binding contract)- Strata title deed (hard title strongly preferred over soft title)- Proof of funds and bank transfer records- Tax clearance certificate and payment receipts- Property registration forms for the Land Office

**Optional but Recommended Documents:**- Power of attorney (if purchasing remotely)- Company formation documents (if using corporate structure)- Property valuation report from licensed surveyor- Building compliance and safety certificates- Property management agreements (for condominiums)

The distinction between hard and soft titles is critical in Cambodia. Hard titles provide full legal ownership with government backing, while soft titles offer less security and legal protection. Always prioritize properties with hard titles, even if they cost slightly more.

It's something we develop in our Cambodia property pack.

Are real estate agents in Cambodia generally reliable, and how do you choose a trustworthy one?

Real estate agent reliability in Cambodia varies dramatically, making careful selection essential for a successful property transaction.

**Indicators of Reliable Agents:**1. Licensed with the Cambodian Valuers and Estate Agents Association (CVEA)2. Established office presence with professional staff and marketing materials3. International experience and English-language capabilities4. Positive client testimonials and verifiable references5. Transparent fee structures and professional contracts

**Red Flags to Avoid:**1. Agents promising "legal workarounds" for foreign ownership restrictions2. Pressure tactics or demands for immediate decisions3. Reluctance to provide references or licensing credentials4. Operating from temporary or residential locations5. Guaranteeing unrealistic rental yields or appreciation rates

Many experienced foreign buyers work exclusively with agents who have international certifications or affiliations with global real estate networks. These professionals typically understand foreign buyer needs better and maintain higher professional standards.

Before engaging any agent, request their CVEA license number, ask for recent client references, and verify their track record through online reviews and local expat communities. The best agents will gladly provide this information and encourage due diligence.

Commission rates typically range from 1-3% of the property value, with the seller usually paying the agent's fee. Be wary of agents requesting upfront payments or unusual fee arrangements.

Will the legal system in Cambodia actually protect a foreign buyer if issues arise?

Cambodia's legal system offers some protection for foreign property buyers, but enforcement can be unpredictable and less robust than in developed countries.

The country operates under a civil law system with property rights generally recognized and enforced, particularly for properly documented transactions involving strata-titled properties. Courts do handle property disputes, and foreigners can pursue legal remedies through the judicial system.

However, several challenges limit effective legal protection. The judicial process can be slow, expensive, and sometimes influenced by local connections or corruption. Language barriers complicate proceedings, and foreign buyers often struggle to navigate complex bureaucratic procedures without professional assistance.

**Strongest Legal Protections:**- Hard title strata properties with proper registration- Transactions completed through licensed lawyers- Properties in established developments with clear documentation- Purchases following all legal procedures and payment of required taxes

**Weakest Legal Protections:**- Soft title properties or unclear ownership situations - Nominee arrangements or workaround structures- Verbal agreements or inadequate documentation- Properties in disputed areas or with unresolved legal issues

To maximize legal protection, always use reputable law firms specializing in foreign property transactions, ensure all documentation is properly executed and registered, and maintain detailed records of all payments and communications throughout the process.

What taxes, fees, and costs should you expect in full detail, from purchase price to transfer?

Total transaction costs for Cambodian property purchases typically range from 6-10% of the property value, depending on the specific circumstances and professional fees.

Cost Category	Percentage/Amount	Payment Details
Transfer Tax	4% of property value	Paid to government at title transfer
Real Estate Agent Commission	1-3% of property value	Usually paid by seller, but verify
Legal Fees	$1,000-$2,500	For due diligence and conveyancing
Property Registration Fee	$100-$300	Official government registration
Stamp Duty	0.1% of property value	Applied to legal documents
Bank Transfer Fees	$50-$200	International wire transfer costs
Property Valuation	$200-$500	Optional but recommended

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 you buy property in cash, and if so, is that common practice?

Cash purchases dominate the Cambodian real estate market, with most foreign buyers paying the full property value upfront without financing.

Approximately 80-90% of foreign property transactions in Cambodia are completed with cash payments, primarily due to limited mortgage availability for non-residents. This cash-heavy market creates both opportunities and challenges for international buyers.

**Advantages of Cash Purchases:**- Faster transaction completion (30-45 days versus 60-90 days with financing)- Stronger negotiating position with sellers and developers- No mortgage approval requirements or debt-to-income restrictions- Elimination of financing costs and interest payments- Simplified closing process with fewer documents and approvals

**Cash Payment Process:**- Funds typically transferred via international bank wire transfer- US dollars are widely accepted and preferred for large transactions - Banks require proper documentation showing legitimate fund sources- Transfer amounts above $10,000 trigger reporting requirements- Some buyers use cryptocurrency exchanges, though legal status remains unclear

Sellers and developers often offer cash purchase discounts of 2-5% off the listed price, making immediate payment financially attractive beyond the convenience factor.

For security purposes, never carry large amounts of physical cash into Cambodia. International wire transfers provide proper documentation and legal protection for your transaction.

Do mortgages exist for foreigners in Cambodia, and if yes, what rates, conditions, and tips apply?

Mortgages for foreign buyers exist in Cambodia but remain limited in availability with strict qualification requirements and higher costs compared to local borrowers.

**Available Lenders and Conditions:**- Major Cambodian banks (ABA Bank, Canadia Bank, Vattanac Bank) offer foreign mortgages- Loan-to-value ratios typically capped at 60-70% for foreigners- Interest rates range from 6-10% annually, depending on bank and borrower profile- Loan terms usually limited to 15-20 years maximum- Minimum loan amounts often start at $50,000-$100,000

**Qualification Requirements:**- Proof of stable income from employment or business (minimum $3,000-$5,000 monthly)- Down payment of 30-40% of property value required- Clean credit history from home country- Valid work permit or long-term visa status- Debt-to-income ratio below 40-50%- Property must have hard title and proper insurance

**Practical Tips for Foreign Borrowers:**- Build a relationship with the bank before applying by opening accounts and maintaining deposits- Provide extensive financial documentation, including tax returns, bank statements, and employment letters- Consider using a mortgage broker familiar with foreign lending requirements- Factor in currency exchange risks if your income is in a different currency- Understand that approval processes can take 60-90 days

Many foreign buyers find the stringent requirements and limited loan amounts make cash purchases more practical and cost-effective for their Cambodian property investments.

What are the classic mistakes and pitfalls foreigners make when buying property in Cambodia?

Foreign buyers frequently encounter preventable problems that can result in financial losses or legal complications in the Cambodian property market.

1. **Attempting to buy landed property through nominee structures** - Using Cambodian citizens as fronts to hold title creates enormous risk, as nominees legally own the property and can claim full ownership at any time.2. **Inadequate due diligence on titles and ownership** - Failing to verify hard title status, check for liens or encumbrances, and confirm clear ownership chains leads to future legal disputes.3. **Skipping professional legal representation** - Attempting to navigate the purchase process without qualified lawyers familiar with foreign buyer requirements often results in documentation errors and legal vulnerabilities.4. **Relying solely on soft titles** - Accepting soft title properties without pushing for hard title conversion leaves buyers with insecure ownership that's difficult to defend legally.5. **Underestimating total transaction costs** - Many buyers focus only on the purchase price and get surprised by transfer taxes, legal fees, and other expenses that add 6-10% to the total cost.6. **Ignoring the 70% foreign ownership rule** - Purchasing in buildings where foreign ownership already approaches the legal limit can create problems with future resales to other foreigners.7. **Inadequate property inspection** - Buying based on photos or virtual tours without physical inspection often reveals construction defects, location issues, or misrepresented features.8. **Currency and payment method errors** - Making payments through unofficial channels or failing to properly document fund sources can create tax and legal complications.

It's something we develop in our Cambodia property pack.

If you invest in property, is there any path to residency or citizenship, and where do foreigners tend to buy the most?

Property investment in Cambodia does not provide a direct pathway to permanent residency or citizenship, unlike some other Southeast Asian countries with formal investor visa programs.

**Residency and Visa Options:**- No specific real estate investor visa category exists- Business visas (Type E) available for foreign investors, but require active business operations beyond property ownership- Retirement visas available for seniors with financial requirements, independent of property ownership- Long-term tourist visas can be extended repeatedly but don't lead to permanent status- Cambodian citizenship remains extremely difficult for foreigners, typically requiring 7+ years of continuous residence and language proficiency

**Most Popular Foreign Investment Areas:****Phnom Penh (60-65% of foreign purchases):**- Central districts like Daun Penh, Chamkar Mon, and 7 Makara- High-rise condominiums in BKK1, BKK2, and BKK3 areas- Average prices: $1,200-$2,500 per square meter- Strong rental demand from expat professionals and local upper class**Siem Reap (15-20% of foreign purchases):**- Tourism-focused condominium developments- Properties near Angkor Archaeological Park- Average prices: $800-$1,500 per square meter- Rental income tied to tourism recovery**Sihanoukville (10-15% of foreign purchases):**- Coastal condominiums and beachfront properties- Significant Chinese investment and development- Average prices: $1,000-$2,000 per square meter- Market volatility due to rapid development changes

Most foreign buyers choose Cambodia for portfolio diversification and rental income potential rather than residency benefits, as the country's visa policies remain separate from property ownership status.

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.

Sources

1. Cambodian Property Law - Foreign Ownership Guidelines
2. ABA Bank - Real Estate Financing Options
3. Cambodian Valuers and Estate Agents Association - Professional Standards
4. Cambodia Investment Board - Property Investment Regulations
5. Khmer Law Office - Real Estate Transaction Guide
6. World Bank - Cambodia Property Rights Assessment
7. PwC Cambodia - Property Tax and Transfer Guide
8. Knight Frank Cambodia - Real Estate Market Reports