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Foreigners can legally own condominium units above ground floor in Siem Reap, but direct land ownership remains prohibited for non-Cambodians.
As of September 2025, the Siem Reap property market offers significant opportunities for foreign investors, particularly in the condominium sector where foreigners can purchase up to 70% of units in any development. The city's strong tourism recovery and growing expat community have boosted rental demand, making it an attractive destination for both investment and relocation purposes.
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 purchase condominium units above ground floor in Siem Reap but cannot own land directly - alternative structures like long-term leases or company formation are required for landed property.
The city offers rental yields of 5-7% for prime condos, with purchase processes requiring 4% transfer tax and recommended legal counsel to avoid common pitfalls.
| Property Type | Foreign Ownership | Typical Price Range |
|---|---|---|
| Condo (Central) | Yes (above ground floor) | $1,000-$1,500 per sqm |
| Villa/House | No (lease/company only) | $350,000-$500,000 |
| Suburban Borey | No (lease/company only) | $600-$900 per sqm |
| Land Plot | No | Varies by location |
| Ground Floor Units | No | Similar to above-ground |
What kinds of property can a foreigner legally buy in Siem Reap, and what can't they buy compared to locals?
Foreigners in Siem Reap can legally own condominium units above the ground floor in buildings with strata titles, up to 70% of total units per development.
The Cambodian constitution specifically prohibits foreign ownership of land, ground-floor units, and standalone houses. This restriction applies to all non-Cambodians regardless of nationality, while Cambodian citizens face no such limitations and can purchase any property type freely.
Condominiums must be registered with proper strata titles to qualify for foreign ownership. Any unit on the ground floor or basement level cannot be purchased directly by foreigners, even in otherwise eligible condominium buildings.
The 70% foreign ownership cap applies per building, meaning once this threshold is reached, additional units can only be sold to Cambodian nationals. This rule helps maintain majority local ownership while allowing foreign investment.
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Do foreigners need to set up a company, lease, or other structure to hold land in Cambodia?
Foreigners must use alternative legal structures to control landed property since direct ownership is constitutionally prohibited.
Long-term leases of 15-50 years (renewable) provide the most straightforward legal control over land and houses. These lease agreements offer secure usage rights but don't constitute ownership, making them suitable for personal residence or business operations.
Company formation allows indirect land ownership through a Cambodian-registered company with 51% local ownership. This structure requires ongoing compliance, annual reporting, and involves partnership risks with Cambodian shareholders who must hold majority control.
Trust arrangements through licensed trustees offer a newer, more secure option where the trustee legally holds property for the foreign beneficiary. This provides better protection than nominee structures while maintaining legal compliance.
Nominee structures, where land is held in a Cambodian citizen's name with side agreements, are risky and lack legal robustness. These arrangements offer little protection if disputes arise and are not recommended by legal professionals.
What are the residency or visa requirements to buy and own property, and do you need to be physically present during the process?
There are no specific residency or visa requirements to purchase strata-titled condominiums in Siem Reap.
Buyers only need a valid passport, current visa (tourist or business visa acceptable), and standard identification documents for the transaction. No minimum stay requirements or special visa categories are necessary for property purchases.
Physical presence in Cambodia is not strictly required, as purchases can be completed through power of attorney arrangements. However, being present personally is strongly recommended to oversee due diligence, inspect the property, and ensure all documentation is properly executed.
Remote purchases carry higher risks of fraud, misrepresentation, or documentation errors. Many buyers choose to visit Siem Reap to view properties, meet with lawyers, and handle the transaction personally for added security.
The power of attorney must be properly notarized and legalized in your home country, then authenticated by the Cambodian embassy or consulate before use in Cambodia.
Is it mandatory to hire a lawyer or notary, and what are the risks of skipping that step?
Hiring a lawyer or notary is not legally mandatory for foreigners purchasing property in Siem Reap, but professional legal counsel is highly recommended.
The risks of skipping legal representation include title fraud, where sellers don't actually own the property or have clouded titles with existing liens or disputes. Developer defaults represent another significant risk, particularly with off-plan purchases where projects may not be completed as promised.
Contract ambiguities can lead to costly disputes over payment terms, completion dates, or property specifications. Without proper legal review, buyers may agree to unfavorable terms or miss important clauses protecting their interests.
These risks are particularly acute for lease arrangements or company structures, where complex legal frameworks require expert navigation. Professional oversight helps identify potential issues before they become expensive problems.
Legal fees typically range from $1,000-$2,000, which is minimal compared to the protection provided against much larger potential losses from fraud or contractual disputes.
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What is the exact step-by-step process for buying property as a foreigner, including the documents you need?
The property purchase process in Siem Reap follows six main steps with specific documentation requirements at each stage.
Step 1: Property and title search involves verifying the seller's ownership through official records, checking for liens or encumbrances, and confirming the developer's legitimacy for new projects. This requires reviewing the original title deed, strata title registration, and developer licenses.
Step 2: Reservation agreement signing with a deposit of $1,000-$5,000 secures the property while final arrangements are made. This agreement should specify the property details, price, and timeline for completing the purchase.
Step 3: Sale & Purchase Agreement (SPA) execution requires paying a larger deposit of 10-30% of the purchase price. Required documents include valid passport, current visa, marriage certificate (if applicable), and proof of fund sources for the purchase.
Step 4: Transfer and registration involves paying the 4% transfer tax and registering ownership with the Ministry of Land Management. This step legally transfers the property title to the buyer's name.
Step 5: Receiving the strata title deed confirms legal ownership of the condominium unit. This document serves as proof of ownership and is required for future sales or rental activities.
Step 6: Tax compliance includes settling annual property tax obligations and declaring rental income if the property will be rented out to tenants.
Are mortgages actually available to foreigners, and if so, what are the typical rates, conditions, and tips to get approved?
Mortgages are available to foreigners in Siem Reap, primarily for condominium purchases through local banks and developer financing programs.
| Lender Type | Down Payment | Interest Rate | Requirements |
|---|---|---|---|
| Local Banks | 30-50% | 7-12% p.a. | Income proof, credit history |
| Developer Finance | 30-70% | 8-15% p.a. | Less stringent requirements |
| International Banks | 40-60% | 6-10% p.a. | Existing banking relationship |
| Private Lenders | 20-40% | 12-18% p.a. | Flexible terms, higher rates |
| Owner Financing | 10-30% | 8-12% p.a. | Negotiated directly with seller |
Banks like Cambodia Development Bank offer foreigner-friendly mortgage products with standard requirements including valid passport, proof of stable income, good credit history, and bank statements showing financial capacity.
Developer financing often has less stringent requirements and may offer promotional rates for early buyers, but typically comes with higher interest rates than traditional bank mortgages.
Approval tips include maintaining good credit in your home country, providing comprehensive financial documentation, and establishing a relationship with the lending institution before applying.
What are all the taxes, fees, and extra costs you should expect when buying, owning, and reselling property?
Property transactions in Siem Reap involve several mandatory taxes and fees that buyers must budget for beyond the purchase price.
1. Transfer tax of 4% of the property value is paid during the ownership transfer process2. Stamp duty ranges from $100-$200 per transaction depending on property value3. Property tax of 0.1% annually applies to properties valued above $25,0004. Legal and professional fees typically cost $1,000-$2,000 for lawyer services5. Real estate agent commissions of 1-3% are usually paid by the seller6. Due diligence costs for title searches and property inspections7. Notarization and translation fees for documentsCapital gains tax of 20% applies to property sales, though it's currently suspended until December 31, 2025. This suspension may be extended or the tax may be reinstated, so buyers should plan accordingly.
Additional costs include maintenance fees for condominiums, which typically range from $0.50-$1.50 per square meter monthly, and utility deposits for electricity, water, and internet connections.
It's something we develop in our Cambodia property pack.
What are the fiscal implications for foreigners, including rental income taxation and capital gains?
Foreigners owning rental property in Siem Reap must declare rental income and pay taxes according to Cambodian tax law.
Rental income tax is typically assessed at 10% of gross rental income, though rates may vary based on total income levels and tax treaty provisions between Cambodia and the owner's home country.
Capital gains tax of 20% applies to property sales, though as of September 2025, this tax remains suspended until December 31, 2025. Foreign owners should prepare for potential reinstatement of this tax in future years.
Double taxation treaties between Cambodia and many countries may provide relief from paying taxes in both jurisdictions. Property owners should consult tax professionals familiar with their home country's tax obligations for foreign property income.
Proper record-keeping of all property-related expenses, including maintenance, management fees, and improvements, is essential for accurate tax reporting and potential deductions.
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.
Where do foreigners usually settle in Siem Reap, and which areas are currently considered the best for living, renting out, or long-term capital appreciation?
Most foreigners in Siem Reap choose to live in central areas near Pub Street, Wat Damnak, and Sala Kamreuk for convenience and accessibility to amenities.
Central Siem Reap offers the highest rental demand due to proximity to restaurants, bars, cultural sites, and business districts. Properties here command premium rents of $500-$1,500 monthly for condominiums, making them attractive for investment purposes.
Gated communities called "boreys" outside the city center appeal to families and long-term residents seeking security, modern amenities, and quieter environments. These developments typically feature swimming pools, security guards, and well-maintained infrastructure.
Chang Klan district is emerging as a popular area for new condominium developments, offering good value compared to central locations while maintaining reasonable access to the city center.
For capital appreciation, properties near good schools, hospitals, and major infrastructure projects show the strongest potential. The upcoming developments around Siem Reap International Airport area are particularly promising for long-term growth.
What are the latest numbers on livability index, gross rental yields, rental income potential, tourism arrivals, and future growth forecasts?
As of September 2025, Siem Reap demonstrates strong market fundamentals across key investment metrics.
Gross rental yields for prime condominium properties range from 5-7%, with central locations typically achieving the higher end of this range. These yields compare favorably to many regional markets and provide attractive returns for investors.
Rental income potential varies significantly by location and property type. City center condominiums generate $500-$1,500 monthly, while villas and larger properties can command $1,500-$3,000 or more depending on amenities and location.
Tourism arrivals have recovered strongly post-pandemic, with Siem Reap benefiting from Cambodia's reopening and renewed international interest in Angkor Wat. This recovery directly supports short-term rental demand and hotel occupancy rates.
Future growth forecasts favor mixed-use developments, properties near educational institutions, and areas with improved infrastructure connectivity. The government's continued investment in tourism infrastructure supports positive long-term prospects.
Livability for expats remains high due to affordable cost of living, established foreign community, good healthcare facilities, and English-language services, though specific livability index numbers are not officially published for Siem Reap.
How do property prices currently break down by area in Siem Reap, and how do they compare to other Cambodian cities?
Property prices in Siem Reap vary significantly by location and property type as of September 2025.
| Area | Condo Price (per sqm) | Villa Price Range | Market Characteristics |
|---|---|---|---|
| Central Siem Reap | $1,000-$1,500 | $350,000-$500,000 | High demand, limited supply |
| Suburban Boreys | $600-$900 | $200,000-$400,000 | Family-friendly, growing |
| Chang Klan District | $800-$1,200 | $280,000-$450,000 | Emerging area, good value |
| Airport Area | $500-$800 | $150,000-$300,000 | Future potential, developing |
| Wat Damnak | $900-$1,300 | $300,000-$480,000 | Expat favorite, established |
Compared to Phnom Penh, Siem Reap property prices are generally 20-30% lower, especially for condominiums and suburban housing. However, the supply is more limited, which helps maintain price stability and rental yields.
Sihanoukville prices have been more volatile due to casino development and Chinese investment, making Siem Reap a more stable choice for conservative investors seeking steady returns.
The price differential reflects Siem Reap's tourism-focused economy versus Phnom Penh's role as the commercial capital, though this gap has been narrowing as Siem Reap's infrastructure and amenities improve.
What are the classic mistakes and pitfalls foreigners make when buying or owning property in Siem Reap, and how can they be avoided?
The most common mistake is purchasing non-strata titled properties or misrepresented ground-floor units that cannot legally be owned by foreigners.
1. Skipping proper due diligence and legal review, leading to title problems or fraudulent transactions2. Relying on informal nominee structures without enforceable legal protection3. Overlooking hidden developer fees, incomplete tax obligations, or transfer requirements4. Buying off-plan without verifying developer credentials and project financing5. Failing to understand ongoing costs like maintenance fees, taxes, and insurance6. Not researching rental market demand before purchasing investment properties7. Ignoring currency exchange risks when financing purchases from overseas accountsThese pitfalls can be avoided by hiring qualified legal counsel, conducting thorough title searches, and working with reputable developers and agents with proven track records in the Siem Reap market.
It's something we develop in our Cambodia property pack.
Careful planning, professional guidance, and realistic expectations are essential for successful property investment in Siem Reap's growing but still developing market.
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.
Siem Reap offers compelling opportunities for foreign property investors, particularly in the condominium sector where legal ownership is straightforward and rental yields remain attractive.
However, success requires careful navigation of Cambodia's property laws, thorough due diligence, and realistic expectations about market conditions and ongoing costs.