Foreigner’s Guide to Buying Properties In Cambodia

In this article, we will be exploring on how to buy a property in Cambodia as a foreign investor. Let’s talk about the property law in Cambodia.

Can foreigners Buy Property in Cambodia?

Yes. Foreigners can buy property in Cambodia, however with certain restrictions.

Since the passing of legislation in April 2010, the Cambodia foreign ownership property law allows foreigners to buy and own Cambodia properties on the 1st floor or higher to a maximum of 70% of any one apartment building, provided that the building has obtained a ‘strata title’, which generally applies to new condominiums buildings.

Foreigners are not allow to own properties on the ground floor of a building as owning land outright remains prohibited under the foreign ownership property law.

Hence, foreigners are 100% eligible to own a freehold condominium in Cambodia.

But if your intention is to invest in real estate such as buying ground floor apartments or land in Cambodia, please read here.

What are the Cambodia property taxes involve to own a property in Cambodia?

Below is a list of cambodia property taxes and fees that the owner or landlord should take note of when planning to purchase or sell real estate in Cambodia.

  • Transfer Tax : 4% of property value levied on all ‘hard title’ property transfers (transfer of title)
  • Rental Tax : 10% (locals) or 14% (foreigners) per annum on gross rent
  • Property Tax : 0.1% per annum (value determined by Immovable Property Assessment Committee)
  • VAT : 10% VAT is applied on sales of buildings

(Information source: http://www.cambodiainvestment.gov.kh/law-on-providing-foreigners-with-ownership-rights-in-private-units-of-co-owned-buildings_100524.html, http://www.tax.gov.kh/en/taxtypes.php)

Tax & Legal Advice Disclaimer: Information subject to change. This website and its editors do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. No responsibility is accepted for any errors or omissions, however caused, that this publication may contain or for any losses sustained by any person as a result of reliance on any information contained therein.

phnom penh property

Here’s 3 reasons why investors are attracted to buying a property in Cambodia.

Reason No. 1: US Dollar Economy

Despite having their own currency, Khmer Riel (US$1 : 4000 KHR), US dollars are widely used in almost all the daily transactions including business, investment and property purchase. Being the world’s most resislient currency, investor undertakes lesser risk to currency fluctuation when buying a property in Cambodia.

Reason No. 2:  Freehold Ownership

Unlike other emerging countries (such as Vietnam) where foreigners can only own a 50 years leasehold, foreign investors can 100% own a freehold strata-title property in Cambodia.

Reason No.3: Last Frontier Market

Cambodia is probably one of the last and most vibrant frontier market in the world today. Property prices in Cambodia are generally still very attractive when comparing to other countries in Asia. The change in foreign ownership policy has welcomed property investors around the world to invest in Cambodia.

Where Should I Invest in Cambodia?

Investing a property in Phnom Penh will be an ideal choice.

Phnom Penh is the Capital City of Cambodia, which has a beautiful mix of business and tourism.

The Kingdom’s Central Business District is located in Phnom Penh. And due to the low cost of labour and rental, MNCs and international companies are attracted to shift or expand their businesses into Phnom Penh.

As a result, creating housing and business operation demands for residential and office spaces.

If you can looking to invest in a property in Phnom Penh, you may consider investing in Residential or Grade A Offices.

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