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 comes with specific rules that differ significantly from most Western countries.
This guide covers what you can legally own, how the buying process works, and what costs to expect in January 2026.
We constantly update this blog post to reflect the latest regulations and market conditions in Phnom Penh.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phnom Penh.
Insights
- Foreigners in Phnom Penh can only own condo units above the ground floor, which means about 30% of typical condo inventory is automatically off-limits to international buyers.
- The 70% foreign ownership cap per building in Phnom Penh means popular developments in BKK1 or Tonle Bassac often sell out their foreign quota before completion.
- Mortgage rates for foreigners in Phnom Penh typically range from 7% to 11% per year, which is roughly double what buyers from Europe or North America might expect back home.
- Using a local nominee to hold land in your name is the single biggest mistake foreigners make in Phnom Penh, and it can result in losing your entire investment with no legal recourse.
- Closing costs in Phnom Penh run between 5% and 7.5% of the purchase price, with the 4% transfer tax being the largest single expense for buyers.
- Non-resident landlords in Phnom Penh face a 14% withholding tax on rental income, compared to 10% for tax residents, making residency status a meaningful financial decision.
- A "soft title" property in Phnom Penh offers weaker legal protection than a "hard title," yet many foreigners unknowingly purchase soft-title units marketed as condos.
- Annual property tax in Phnom Penh is only about 0.1% of assessed value above a 100 million riel threshold, making holding costs relatively low compared to Western markets.
What can I legally buy and truly own as a foreigner in Phnom Penh?
What property types can foreigners legally buy in Phnom Penh right now?
As a foreigner in Phnom Penh, you can legally buy and fully own a private condo unit in a co-owned building, as long as that unit is located above the ground floor.
The most important legal condition is that the building must be properly registered under Cambodia's co-ownership regime, and foreigners collectively cannot own more than 70% of the total private-unit area in any single building.
This means you cannot directly own landed property like borey villas, townhouses, or standalone houses in Phnom Penh because those come with land, and Cambodian law restricts land ownership to Khmer nationals and Khmer legal entities.
If you want exposure to landed property, the common legal alternatives include long-term leases (up to 50 years, renewable), setting up a Cambodian company that is at least 51% Cambodian-owned, or using a regulated trust structure under Cambodia's 2019 trust framework.
Finally, please note that our pack about the property market in Phnom Penh is specifically tailored to foreigners.
Can I own land in my own name in Phnom Penh right now?
No, as a foreign individual you cannot own land in your own name in Phnom Penh because Cambodia's constitution and Land Law (2001) reserve land ownership exclusively for Khmer citizens and Khmer legal entities.
The most common legal alternative foreigners use is setting up a Cambodian company with at least 51% Cambodian ownership, which then qualifies as a "Khmer legal entity" and can hold land titles.
Other options include long-term leases of up to 50 years (renewable once for another 50 years) or using Cambodia's regulated trust framework, though both of these give you control and use rights rather than outright land ownership in your personal name.
As of 2026, what other key foreign-ownership rules or limits should I know in Phnom Penh?
As of early 2026, the rule that most often catches foreign buyers off guard in Phnom Penh is the floor restriction: you can only own units above the ground floor, so basement or ground-level units are off-limits even in a properly registered condo building.
Cambodia applies a 70% foreign ownership quota to co-owned buildings, meaning foreigners collectively cannot own more than 70% of the total private-unit floor area in any single condo development in Phnom Penh.
When you buy, the transfer must be registered with the cadastral authorities under the Ministry of Land Management, Urban Planning and Construction (MLMUPC) to make your ownership legally enforceable against third parties.
There have been no major regulatory changes to foreign ownership rules announced for 2026, so the 2010 Foreign Ownership Law and its implementing regulations remain the governing framework in Phnom Penh.
What's the biggest ownership mistake foreigners make in Phnom Penh right now?
The single biggest ownership mistake foreigners make in Phnom Penh is using a local nominee (a Cambodian individual) to hold land in their name, which puts your entire investment at risk since these private side agreements are unenforceable under Cambodian law.
If a nominee arrangement goes wrong, you have no legal claim to the property because courts will recognize the Cambodian nominee as the rightful owner, leaving you with potentially zero recovery on your investment.
Other classic pitfalls in Phnom Penh include buying a unit marketed as a "condo" that is not properly registered under the co-ownership regime, purchasing ground-floor units that foreigners legally cannot own, and failing to verify whether the building has already hit its 70% foreign ownership cap.
We have made this infographic to give you a quick and clear snapshot of the property market in Cambodia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Phnom Penh?
Do I need a specific visa to buy property in Phnom Penh right now?
In Phnom Penh, you do not need a specific visa to buy property, and many foreigners successfully purchase condo units while on a standard tourist visa since Cambodian property ownership rules are not visa-gated.
The most common administrative blocker for buyers without local residency is opening a Cambodian bank account, which some banks require for payment processing and which typically needs longer-stay documentation beyond a tourist visa.
You will generally need a local tax identification number (TIN) to close cleanly in Phnom Penh because the 4% transfer tax payment and registration filings require tax identification details.
A typical document set for foreign buyers in Phnom Penh includes your passport, proof of funds, a local bank account or certified fund transfer, and a power of attorney if you are completing any steps remotely.
Does buying property help me get residency and citizenship in Phnom Penh in 2026?
As of early 2026, buying ordinary residential property in Phnom Penh does not automatically grant you residency or citizenship, so any marketing claims suggesting otherwise should be treated with skepticism until verified with current government documentation.
Cambodia does not have a formal "golden visa" program tied to real estate investment in the way that countries like Portugal or Thailand have structured their programs.
Pathways to longer-term residency in Cambodia typically involve renewable business visas (often called "ordinary" or E-class visas), work permits tied to employment, or retirement visa extensions, none of which are directly triggered by property purchase alone.
We give you all the details you need about the different pathways to get residency and citizenship in Phnom Penh here.
Can I legally rent out property on my visa in Phnom Penh right now?
Your visa status in Phnom Penh does not directly determine whether you can rent out property you own, but your tax residency status significantly affects how much withholding tax applies to your rental income.
You do not need to live in Cambodia to rent out your Phnom Penh property, and many foreign owners manage their rentals from abroad using local property agents or building management services.
The key detail foreigners must know is the withholding tax difference: if you are treated as a non-resident, the standard withholding rate on Cambodian-source rental income is 14%, compared to 10% if you qualify as a tax resident.
We cover everything there is to know about buying and renting out in Phnom Penh here.
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How does the buying process actually work step-by-step in Phnom Penh?
What are the exact steps to buy property in Phnom Penh right now?
The standard buying sequence in Phnom Penh goes: select a foreign-eligible property (typically a condo unit), pay a booking fee to reserve it, conduct due diligence on title and building legality, sign the Sale and Purchase Agreement (SPA), make staged payments, pay the 4% transfer tax, register the transfer with MLMUPC, and then handle post-transfer setup like utilities and building management.
You do not have to be physically present for most steps in Phnom Penh because transactions can often be completed via power of attorney, though many buyers prefer to attend the final signing and handover in person.
The step that typically makes the deal legally binding in Phnom Penh is signing the Sale and Purchase Agreement (SPA), which locks in both parties' obligations and usually requires a substantial deposit.
From accepted offer to final registration, the typical timeline in Phnom Penh ranges from 4 to 8 weeks for a straightforward condo purchase, though it can stretch longer if there are title issues or if the building's foreign quota needs verification.
We have a document entirely dedicated to the whole buying process our pack about properties in Phnom Penh.
Is it mandatory to get a lawyer or a notary to buy a property in Phnom Penh right now?
A notary is not mandatory in Phnom Penh because Cambodia's property transfer system is not notary-centric like some European countries; instead, the critical legal step is proper registration of the transfer with the cadastral authorities.
The key difference in Phnom Penh is that a notary (if used) would only authenticate signatures, while a lawyer reviews the entire transaction for legal risks, verifies the title, checks encumbrances, and ensures the property qualifies for foreign ownership.
If you hire a lawyer for a Phnom Penh property purchase, make sure their engagement scope explicitly includes title verification, confirmation that the unit is foreign-eligible (above ground floor, within the 70% quota), and a check for any registered mortgages or liens.
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 checks should I run so I don't buy a problem property in Phnom Penh?
How do I verify title and ownership history in Phnom Penh right now?
The official authority to verify title and ownership history in Phnom Penh is the cadastral administration under the Ministry of Land Management, Urban Planning and Construction (MLMUPC), which maintains the national land registry.
The key document to request is the "hard title" certificate (or "strata title" for condos), which shows the registered owner and confirms the property is nationally registered, as opposed to a "soft title" which offers weaker legal protection.
A realistic look-back period for ownership history checks in Phnom Penh is at least 10 years, which helps you spot any disputed transfers, inheritance issues, or gaps in the chain of ownership.
A clear red flag that should stop or pause your purchase in Phnom Penh is any unresolved dispute, missing transfer documentation, or a seller who cannot produce a clean chain of title connecting them to the previous registered owners.
You will find here the list of classic mistakes people make when buying a property in Phnom Penh.
How do I confirm there are no liens in Phnom Penh right now?
The standard way to confirm there are no liens or encumbrances on a property in Phnom Penh is to request an official search or confirmation letter from the cadastral registry, which will show any registered mortgages (called "hypothecs" in Cambodian law) or security interests.
The most common type of lien to ask about specifically in Phnom Penh is a bank mortgage or hypothec, especially for resale properties where the seller may still have an outstanding loan secured against the title.
The best form of written proof showing lien status in Phnom Penh is an official encumbrance certificate or confirmation letter from the cadastral authority, which your lawyer should obtain as part of standard due diligence before you sign the final transfer documents.
How do I check zoning and permitted use in Phnom Penh right now?
The authority to check zoning and permitted use for a property in Phnom Penh is MLMUPC (Ministry of Land Management, Urban Planning and Construction), which oversees urban planning and issues construction and occupancy permits.
The key document to confirm zoning classification in Phnom Penh is the building's construction permit and occupancy certificate, which should specify whether the property is approved for residential use.
A common zoning pitfall that foreign buyers miss in Phnom Penh is purchasing a unit in a building that was approved for commercial or mixed use but is marketed as residential, which can create issues with your ownership rights and future resale.
Buying real estate in Phnom Penh can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Phnom Penh, and on what terms?
Do banks lend to foreigners for homes in Phnom Penh in 2026?
As of early 2026, yes, some banks in Phnom Penh do lend to foreigners for home purchases, though the process is more selective than for Cambodian nationals and typically favors buyers with local income or strong documentation.
Foreign borrowers in Phnom Penh commonly see loan-to-value (LTV) ratios ranging from 50% to 70%, meaning you should expect to put down at least 30% to 50% of the purchase price as a down payment.
The single most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Phnom Penh is proof of stable income, preferably Cambodia-based, though some banks will accept documented offshore income with additional verification.
You can also read our latest update about mortgage and interest rates in Cambodia.
Which banks are most foreigner-friendly in Phnom Penh in 2026?
As of early 2026, the three most foreigner-friendly banks for mortgages in Phnom Penh are ABA Bank, ACLEDA Bank, and Canadia Bank, all of which have published home loan products and experience working with international buyers.
What makes these banks more foreigner-friendly is that they publish clear mortgage terms in English, have established processes for verifying foreign income, and offer longer tenors (up to 20 to 25 years) compared to smaller lenders.
These banks can lend to non-residents in some cases, but buyers without local residency typically face stricter documentation requirements, higher down payments, and sometimes higher interest rates than locally employed foreigners.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Phnom Penh.
What mortgage rates are foreigners offered in Phnom Penh in 2026?
As of early 2026, foreigners in Phnom Penh can expect mortgage interest rates in the range of 7% to 11% per year, depending on the property type, your income documentation, down payment size, and whether you qualify for any promotional rates.
Most mortgages offered to foreigners in Phnom Penh are variable-rate products tied to the bank's base rate, though some banks offer fixed-rate options for the first one to three years that may start slightly higher but provide payment predictability.
We made this infographic to show you how property prices in Cambodia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Phnom Penh?
What are the total closing costs as a percent in Phnom Penh in 2026?
Total closing costs for buyers in Phnom Penh in 2026 typically run between 5% and 7.5% of the purchase price, with most straightforward condo transactions landing closer to the 5% to 6% range.
The realistic low-to-high range depends on whether you negotiate the transfer tax with the seller and how much you spend on legal and administrative services, but 5% to 7.5% covers the vast majority of standard purchases in Phnom Penh.
The specific fee categories that make up closing costs in Phnom Penh include the transfer (stamp) tax, legal fees, due diligence costs, document processing, translation services, and miscellaneous banking or administrative charges.
The single biggest contributor to closing costs in Phnom Penh is the 4% transfer tax (often called stamp duty), which is calculated on the higher of the contract price or the official assessed value and is typically paid by the buyer unless otherwise negotiated.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Phnom Penh.
What annual property tax should I budget in Phnom Penh in 2026?
As of early 2026, annual property tax in Phnom Penh is approximately 0.1% of the assessed value above a threshold of around 100 million Cambodian riel (roughly 25,000 USD or 23,000 EUR), so a 120,000 USD condo might cost you only 100 to 200 USD per year in property tax.
Property tax in Phnom Penh is assessed as a percentage of the government's official valuation of your property (not necessarily your purchase price), and the threshold exemption means lower-value properties may owe little or nothing.
How is rental income taxed for foreigners in Phnom Penh in 2026?
As of early 2026, foreigners earning rental income in Phnom Penh typically face a withholding tax of 14% if they are treated as non-residents for Cambodian tax purposes, compared to 10% for those who qualify as tax residents.
The basic requirement is that Cambodian payers (such as companies or agents) withhold the tax at source before paying you, so in practice your rental income arrives net of the withholding, and this often serves as your final tax on that income.
What insurance is common and how much in Phnom Penh in 2026?
As of early 2026, a typical annual insurance premium for a standard residential property in Phnom Penh ranges from about 100 to 400 USD (90 to 370 EUR, or 400,000 to 1,600,000 Cambodian riel), depending on the property value and coverage level.
The most common type of property insurance coverage that owners carry in Phnom Penh is fire and property all-risks insurance, which covers fire damage, natural disasters, and sometimes theft or water damage depending on the policy.
The single biggest factor that makes insurance premiums higher or lower for the same property type in Phnom Penh is the sum insured (the total value you want covered), with premiums typically running 0.1% to 0.25% of that amount per year.
Get the full checklist for your due diligence in Phnom Penh
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phnom Penh, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| Cambodia Land Law (2001) | It is the primary statute defining who can own land in Cambodia. | We used it to establish that foreigners cannot own land directly. We also referenced it for how ownership transfers must be registered to be legally enforceable. |
| Law on Foreign Ownership (2010) | It is the core law granting foreigners ownership rights in condo units. | We used it to define what foreigners can legally own and the ground-floor restriction. We also referenced the building-level ownership cap framework. |
| Council for the Development of Cambodia | It consolidates Cambodian investment laws with structured summaries. | We used it to cross-check land ownership constraints and Khmer legal entity definitions. We also used it as a sanity check against primary law PDFs. |
| Ministry of Land Management (MLMUPC) | It is the lead ministry overseeing land administration and urban planning. | We used it to explain where title registration sits institutionally. We also referenced it for zoning and permitted use verification processes. |
| General Department of Taxation | It is the official tax authority administering transfer and property taxes. | We used it to ground the tax structure and payment responsibilities. We referenced it for transfer tax and property tax frameworks. |
| PwC Cambodia Tax Summaries | PwC is a major tax reference that clearly distinguishes resident versus non-resident rules. | We used it to determine withholding tax rates on rental income. We also referenced it for the 4% transfer tax base calculation. |
| Knight Frank Cambodia | It is an established international real estate advisory with local expertise. | We used it to cross-check transfer tax and property tax rates. We also referenced it for the rental tax framing for foreign landlords. |
| National Bank of Cambodia | It is the central bank's official statistics hub for interest rates. | We used it to anchor mortgage rate context and validate that Cambodia is not a low-rate market. We used it as a macro reality check for rate ranges. |
| ABA Bank | ABA is one of the most prominent retail banks in Cambodia. | We used it to anchor a concrete mortgage rate example available in the market. We referenced their published terms for foreign borrower options. |
| ACLEDA Bank | ACLEDA is a major Cambodian bank with primary-source product information. | We used it to provide an additional reference point for home loan pricing. We also referenced it for LTV and tenor constraints facing foreigners. |
| Canadia Bank | Canadia is a large local bank with a home loan offering for the Phnom Penh market. | We used it to round out the list of foreigner-friendly mortgage lenders. We referenced their product page for published loan terms. |
| Cambodia e-Visa Portal | It is the official government website for e-visa guidance and access. | We used it to keep visa discussion grounded in official entry pathways. We referenced it as the baseline before discussing longer-stay options. |
| Trust Regulator (MEF) | It is the government site publishing official trust framework regulations. | We used it to support the existence of Cambodia's trust framework as a legal structure. We explained how trust holding differs from nominee arrangements. |
| AG Cambodia Insurance | It is an established insurer offering property coverage in Cambodia. | We used it to verify that property insurance products are actively sold. We referenced it for typical coverage types available to owners. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cambodia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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