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Foreigners can own condominiums and apartments above ground floor in Phnom Penh, but cannot directly own land or houses.
The process requires physical presence for final documentation, specific legal compliance, and understanding of ownership restrictions that differ significantly from Cambodian citizens' rights.
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.
Foreign property ownership in Phnom Penh is limited to strata-titled units above ground floor, with a 70% foreign ownership cap per building.
The purchase process requires physical presence, costs around 4-6% in taxes and fees, and no residency requirements are needed for ownership.
| Property Type | Foreign Ownership | Key Restrictions |
|---|---|---|
| Condominiums | Allowed | Above ground floor only, max 70% foreign ownership per building |
| Apartments | Allowed | Must have strata title, above ground floor |
| Commercial Units | Allowed | Office/retail spaces above ground floor only |
| Land | Not allowed | Long-term lease (50-99 years) or company structure alternatives |
| Houses/Villas | Not allowed | Must use lease or nominee company structures |
| Ground Floor Units | Not allowed | Reserved for Cambodian citizens only |
| Investment Threshold | No minimum | No minimum investment required for ownership |
What exactly can foreigners buy compared to Cambodian citizens or other nationalities?
Foreigners can own condominiums and apartments above ground floor in Phnom Penh, but face significant restrictions compared to Cambodian citizens.
Foreign ownership is limited to strata-titled condominium units and apartments located above the ground floor, with a maximum of 70% foreign ownership per building. This means Cambodian citizens must own at least 30% of any building where foreigners hold units. Commercial properties like office spaces and retail units follow the same rules - above ground floor only with the same ownership caps.
Cambodian citizens have full property rights and can own any type of real estate including land, houses, villas, and ground floor units without restrictions. They can also establish 100% locally-owned companies to hold property assets.
Land ownership remains completely off-limits to foreigners, as do standalone houses and villas. Ground floor units in any building are reserved exclusively for Cambodian citizens. However, foreigners can explore alternative structures like long-term leases (50-99 years) or nominee company arrangements, though these involve additional complexity and costs.
It's something we develop in our Cambodia property pack.
Are there residency, visa, or long-stay requirements to own property as a foreigner?
No residency or visa requirements exist for foreigners to purchase property in Phnom Penh.
Foreigners can buy strata-titled condominiums even on a tourist visa, making Cambodia one of the more accessible Southeast Asian property markets for international buyers. You don't need to establish residency, obtain work permits, or meet minimum stay requirements before purchasing.
Programs like Cambodia's "My Second Home" (CM2H) residency visa or other long-term stay permits are available but not required for property ownership. These programs may offer benefits for extended stays, tax advantages, or ease of doing business, but they're separate from property purchase requirements.
The main requirement is legal compliance with foreign ownership restrictions and proper documentation during the purchase process, not immigration status or residency.
Do I need to be physically present in Cambodia to complete a property purchase?
Physical presence is typically required for the final ownership transfer and deed signing process in Phnom Penh.
You must appear at the local cadastral office to sign the definitive purchase contract and complete ownership transfer documentation. This includes providing thumbprints and signatures on official documents that must be done in person for legal validity.
Remote purchase through power of attorney is theoretically possible but adds significant complexity and costs. The power of attorney must be properly notarized, translated into Khmer, and authenticated through diplomatic channels. Legal fees for remote transactions typically increase by $1,000-$2,000 due to additional documentation and verification requirements.
Most property lawyers recommend physical presence to avoid complications, ensure proper document review, and complete the transfer smoothly. Initial negotiations, due diligence, and preliminary agreements can be handled remotely, but final closing requires your attendance.
What is the step-by-step process of buying property, and which documents are required?
The property purchase process in Phnom Penh involves six main steps with specific documentation requirements at each stage.
First, conduct thorough due diligence by confirming the building has valid strata titles and reviewing all developer documentation and title history. This prevents issues with illegal structures or disputed ownership.
Second, negotiate terms and reserve the property by working with a licensed real estate agent, signing a preliminary purchase agreement, and paying a deposit typically ranging from 5-10% of the purchase price.
Third, prepare all required documents including your passport, marital status proof (marriage certificate or single status declaration), bank statements showing fund sources, and all foreign documents translated into Khmer by certified translators.
Fourth, attend the cadastral office in person to sign the definitive purchase contract and complete ownership transfer paperwork. Your name must appear in Khmer script on all official titles.
Fifth, pay all applicable taxes and fees including the 4% transfer tax based on assessed property value, stamp duty of $100-$200, and legal or agent fees.
Sixth, register your ownership by submitting all documentation and payments to receive your official strata title issued directly in your name as the foreign owner.
Is hiring a lawyer mandatory, or just strongly recommended, for foreigners buying property?
Hiring a lawyer is not legally mandatory but strongly recommended for foreign property purchases in Phnom Penh.
Legal representation helps navigate language barriers since all official documents are in Khmer, conduct proper due diligence on property titles and developer credentials, and protect against fraud which can be more common in developing property markets. Lawyers also ensure compliance with foreign ownership laws and percentage restrictions.
Professional legal fees typically range from $1,000-$2,000 for comprehensive review and transaction support. This includes title verification, contract review, due diligence on the developer or seller, and guidance through the cadastral registration process.
The complexity of Cambodian property law, especially regarding strata titles and foreign ownership caps, makes professional legal guidance essential for protecting your investment. Many foreigners who skip legal representation face issues with incomplete documentation or invalid ownership structures.
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What taxes, fees, and additional costs should I expect when purchasing and later reselling property?
Property purchase and resale in Phnom Penh involves several mandatory taxes and fees totaling approximately 4-6% of the property value.
| Cost Type | Rate/Amount | When Applied |
|---|---|---|
| Transfer Tax | 4% of assessed value | At purchase |
| Stamp Duty | $100-$200 | At purchase |
| Annual Property Tax | 0.1% annually | Properties above $25,000 |
| Agent Commission | 1-3% | Usually paid by seller |
| Legal/Professional Fees | $1,000-$2,000 | At purchase |
| Capital Gains Tax | 20% on profit | At resale (currently suspended) |
| Translation/Documentation | $200-$500 | At purchase |
Capital gains tax of 20% on resale profits was temporarily suspended as of September 2025, but this status can change and should be verified before selling. Annual property tax applies to properties valued above approximately $25,000.
Additional costs may include property management fees if using rental management services, insurance premiums, and potential company setup costs if using alternative ownership structures for land or house purchases.
Can foreigners actually get a mortgage in Cambodia, and if so, what rates and conditions are typical, and what tips help with approval?
Foreigners can obtain mortgages from Cambodian banks, but with stricter requirements and higher rates than local borrowers.
Mortgage rates for foreigners typically range from 8-12% annually in USD, with loan-to-value ratios usually capped at 70% maximum. Local banks like ABA Bank, ACLEDA, and Canadia Bank offer foreign mortgage products, though each has different eligibility criteria.
Required documentation includes proof of income for at least two years, bank statements showing consistent deposits, employment verification, and demonstration of ties to Cambodia through business or extended residence. Some banks require a minimum income threshold of $3,000-$5,000 monthly.
Approval tips include establishing a relationship with local banks before applying, maintaining Cambodian bank accounts with regular activity, and providing comprehensive financial documentation. Having a co-borrower who is a Cambodian citizen can significantly improve approval chances and terms.
Loan terms typically range from 10-15 years, with some banks offering up to 20 years for qualified borrowers. Processing time usually takes 4-8 weeks with complete documentation.
Which areas of Phnom Penh are most popular among foreigners for living, renting out, or capital appreciation, and how do they compare with other Cambodian cities?
BKK1, Tonle Bassac, Daun Penh, and Toul Kork districts represent the most popular areas for foreign property ownership in Phnom Penh.
BKK1 (Boeung Keng Kang) offers the highest concentration of expatriate-friendly amenities including international restaurants, cafes, and services. Property prices here command premium rates with strong rental demand from foreign professionals and diplomats.
Tonle Bassac has emerged as the luxury residential district with modern high-rise developments, international schools, and proximity to the Mekong River. This area shows the strongest capital appreciation potential among foreign buyers.
Daun Penh contains the business district and historical center, popular for both commercial investments and residential rentals targeting business travelers and short-term expatriate stays.
Toul Kork provides more affordable options while still maintaining good infrastructure and expat services, making it attractive for long-term foreign residents and rental investments.
Compared to other Cambodian cities, Phnom Penh dominates foreign investment with approximately 80% of international property purchases. Siem Reap attracts tourism-focused investments but with more seasonal rental patterns, while Sihanoukville faces ongoing development challenges that make it less attractive to foreign buyers.
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 do the latest liveability index, gross rental yields, rental income trends, tourism numbers, and growth forecasts say about property prospects in Phnom Penh?
Phnom Penh shows positive property investment indicators with gross rental yields averaging 6-8% for well-located condominiums as of September 2025.
The city ranks as Cambodia's most liveable urban center with improving infrastructure, expanding international business presence, and growing expatriate population. Government investment in transportation, utilities, and urban development supports long-term property value growth.
Tourism recovery post-pandemic shows steady growth with international visitor numbers increasing 15-20% annually, supporting short-term rental demand especially in central districts. Business travel and diplomatic activities provide consistent rental income sources.
Property price growth forecasts suggest 3-5% annual appreciation for prime locations, driven by limited supply of legal foreign-ownership units and continued economic development. The government's push for digitalization and foreign investment creates positive employment trends supporting rental demand.
However, oversupply in some segments and economic dependency on neighboring countries present risks that investors should consider when evaluating long-term prospects.
It's something we develop in our Cambodia property pack.
What is the current breakdown of property prices in Phnom Penh compared with other major cities or regions of Cambodia?
Phnom Penh commands the highest property prices in Cambodia, with significant premiums over other cities and regions.
| Location | Average Condo Price per sqm | Premium vs National Average |
|---|---|---|
| Phnom Penh - BKK1 | $2,500-$4,000 | +200-300% |
| Phnom Penh - Tonle Bassac | $2,200-$3,500 | +180-250% |
| Phnom Penh - Daun Penh | $1,800-$2,800 | +120-180% |
| Phnom Penh - Toul Kork | $1,500-$2,200 | +90-140% |
| Siem Reap Center | $1,200-$1,800 | +50-90% |
| Sihanoukville | $800-$1,500 | -20% to +50% |
| Battambang | $600-$1,000 | -40% to -20% |
Prime luxury developments in central Phnom Penh can reach $5,000+ per square meter, while entry-level condominiums in outer districts start around $1,200 per square meter. The price gap between Phnom Penh and secondary cities reflects the capital's economic dominance and infrastructure advantages.
What are the classic mistakes and pitfalls foreigners often make when buying property in Cambodia?
Foreign buyers frequently make critical errors that can result in financial losses or invalid ownership in Cambodia's property market.
1. **Attempting direct land ownership**: Many foreigners try to buy land or houses directly, which violates Cambodian law and results in invalid transactions.2. **Purchasing units without valid strata titles**: Buying condominiums in buildings that lack proper strata title documentation means the purchase is illegal and unenforceable.3. **Ignoring the 70% foreign ownership cap**: Purchasing in buildings that already exceed foreign ownership limits can invalidate the transaction.4. **Poor due diligence on developers**: Failing to verify developer credentials, financial stability, and project legality leads to incomplete or abandoned developments.5. **Using unclear nominee structures**: Establishing companies or lease arrangements without proper legal structure and documentation creates ownership disputes.6. **Skipping professional legal review**: Attempting to handle complex documentation and legal requirements without qualified legal assistance.7. **Inadequate fund source documentation**: Failing to properly document the legal source of purchase funds can create issues with money laundering regulations.8. **Buying ground floor units**: Purchasing ground floor properties which are legally restricted to Cambodian citizens only.It's something we develop in our Cambodia property pack.
What are the fiscal implications of owning property as a foreigner, including income tax on rent, capital gains tax, and inheritance rules?
Foreign property owners in Phnom Penh face several ongoing tax obligations and inheritance considerations that differ from their home countries.
Rental income from your property is subject to Cambodian income tax with rates depending on your residency status and total annual income. Non-resident foreigners typically pay a flat 14% tax on gross rental income, while resident foreigners may qualify for progressive tax rates starting at 0% for income under $1,250 annually.
Capital gains tax of 20% applies to profits from property sales, calculated on the difference between purchase and sale prices after accounting for allowable deductions like improvement costs. This tax was temporarily suspended as of September 2025 but can be reinstated, so verification is essential before selling.
Property inheritance must follow Cambodian legal procedures regardless of your nationality or home country estate planning. Foreign heirs are subject to the same ownership restrictions as original buyers, meaning they cannot inherit land or houses directly. Inheritance tax rates and procedures vary based on relationship to the deceased and total estate value.
Annual property tax of 0.1% applies to properties valued above approximately $25,000, calculated on government assessed values which are often lower than market prices. Foreign owners must file annual tax returns in Cambodia for all property-related income and obligations.
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.
Foreign property ownership in Phnom Penh offers opportunities but requires careful navigation of legal restrictions and proper professional guidance.
Success depends on understanding the limitations, following proper procedures, and maintaining realistic expectations about ownership rights and investment returns.
Sources
- EmerHub - Buying Property in Cambodia as a Foreigner
- ADAENG - Foreign Property Ownership Cambodia Guide
- BambooRoutes - Cambodia Real Estate for Foreigners
- RealEstate.com.kh - Strata Title Buying Guide
- CBRE Cambodia - Real Estate Law Guide
- IPS Cambodia - Legal Process of Buying Property
- CBRE Cambodia - How to Buy Property
- InvestAsian - Cambodia Property Investment Guide
- Knight Frank Cambodia - Property Buying Guide
- Sopheap Cambo Law - Foreign Ownership Guide