The Cambodian real estate market continues to attract foreign investors with its competitive prices and growth potential. As Cambodia develops rapidly, it offers a unique blend of modern urban opportunities and rich cultural heritage, making it an appealing destination for property investment. However, navigating the legal landscape can be challenging due to restrictions on land ownership and specific requirements for foreign buyers.

This comprehensive guide provides an updated overview of the process, legal requirements, financial considerations, and potential risks associated with buying real estate in Cambodia as a foreigner in 2025.

Understanding Cambodian Property Laws

The Cambodian Constitution and Land Law significantly impact foreign property ownership. Key provisions include:

  • Article 44 of the Constitution states that only Cambodian nationals can own land outright.
  • The Land Law prohibits foreigners from directly owning land.
  1. Land Ownership: Direct land ownership is not permitted for non-Cambodians.
  2. Condominium Ownership: Foreigners can purchase units within a condominium above the first floor, not exceeding 70% of the total building’s strata title.
  3. Long-term Leases: Foreign investors can engage in long-term leases, typically up to 50 years, with renewal options.

Establishing a Land-Holding Company

One strategy for foreign investors interested in owning land is establishing a land-holding company with majority Cambodian ownership (at least 51%). This allows the foreign investor to hold an indirect interest in real estate.

Types of Properties Available to Foreigners

Foreign investors in Cambodia have several property options:

  1. Condominiums: Legally purchasable by foreigners, with units above ground level and up to 70% foreign ownership in a building.
  2. Long-term Leases: Extend up to 50 years and are renewable, offering a near-equivalent experience to ownership.
  3. Land-Holding Companies: Allow foreigners to hold land indirectly through a company with at least 51% Cambodian ownership.

The Property Buying Process for Foreigners:

Step-by-Step Guide

  1. Conduct Due Diligence: Research property details and conduct a thorough title search.
  2. Draft and Sign Sale and Purchase Agreement (SPA): Outline terms and conditions of the sale.
  3. Engage a Cambodian Lawyer: For legal assistance and document review.
  4. Pay Deposit: Typically 10% of the purchase price.
  5. Finalize Documentation: Gather all necessary documents, including ID, title deed, and tax certificates.
  6. Property Transfer at Land Office: Submit documents, pay transfer taxes and fees.
  7. Complete Payment: Pay the remaining balance as stipulated in the SPA.

Essential legal documents include:

  • Title Deed
  • Transfer Documents
  • Sale and Purchase Agreement (SPA)

Conducting a thorough title search is crucial to mitigate risks associated with ownership disputes or encumbrances.

Financial Considerations and Taxes

Taxes for Foreign Property Owners

  • Rental Income Tax: 10% on gross rental income
  • Capital Gains Tax: 20% on net gains when selling property
  • Property Transfer Tax: 4% on the property’s assessed value during transfer

Mortgage Options

Several Cambodian banks offer mortgage loans to foreigners, with rates typically ranging from 9% to 13% over terms up to 20 years. Required documentation usually includes a valid passport, visa, proof of income, and property details.

While property ownership doesn’t automatically grant residency rights, it can enhance an individual’s profile when applying for visas. Options include:

  • Business Visa (EB Visa): For those engaging in business activities
  • Retirement Visa (ER Visa): For retirees with sufficient financial resources

Property ownership can serve as supporting documentation for these visa applications, potentially streamlining the process.

Best Places to Buy Property in Cambodia as a Foreigner

Popular locations include:

  1. Phnom Penh: The capital city offers a variety of properties and economic opportunities.
  2. Siem Reap: Known for tourism, it provides excellent rental income potential.
  3. Sihanoukville: A coastal resort town with growing infrastructure and tourism.
  • Robust economic growth driving real estate market expansion
  • Increasing interest from international investors
  • Promising rental yield potential, ranging from 3.5% to 6.2% in cities like Phnom Penh
  • Significant infrastructure development projects enhancing connectivity and living standards
  • Rapid urbanization transforming key cities into vibrant economic hubs

Read our full article -> Cambodia Real Estate Market Outlook for 2025

In conclusion, investing in Cambodian real estate as a foreigner offers compelling opportunities but requires a comprehensive understanding of legal requirements, financial considerations, and market dynamics. Seeking professional assistance is crucial for navigating complexities and maximizing investment potential in this growing market.