Buying Guide
How Foreigners Buy Property in Cambodia — Complete Guide
Everything a foreign buyer needs to know before purchasing Cambodian property: the ownership law, the buying process step by step, taxes and costs, and answers to the questions we hear most.
Foreign Ownership in Cambodia
Cambodia permits foreign ownership of condominium units under specific legal conditions. Clear understanding of these rules is essential before proceeding.
What Foreigners Can Own
Foreigners may own condominium units (strata titled properties) above the ground floor in buildings where foreign ownership does not exceed 70% of the total floor area. Ownership is freehold and transferable.
What Foreigners Cannot Own
Ground floor units and landed property (houses with land) cannot be owned directly by foreign individuals. Long-term leasehold structures exist but carry different legal implications.
Common Misconceptions
Foreign ownership through Cambodian companies or nominee structures is legally complex and carries significant risk. We advise only on transactions that comply with the Law on Foreign Ownership (2010) and involve direct individual ownership of eligible condominium units.
The Buying Process, Step by Step
- 1
Define budget and objective
Decide whether you are buying for rental income, capital growth, personal use, or a combination — and set a realistic all-in budget including taxes and fees.
- 2
Shortlist vetted projects
Compare developments by developer track record, construction status, location fundamentals, and foreign-quota availability. We provide side-by-side briefs.
- 3
Reserve your unit
A reservation deposit (typically US$1,000–3,000) holds a specific unit and price while contracts are prepared.
- 4
Independent legal review
A licensed Cambodian lawyer verifies the developer’s licenses, land title, strata-title eligibility, and the sale & purchase agreement before you sign.
- 5
Sign and pay per schedule
Off-plan purchases follow a staged payment plan — typically 10–30% down and installments through construction, interest-free from the developer.
- 6
Handover and title transfer
On completion you inspect the unit, settle the balance, and register the strata title in your name at the Ministry of Land Management.
Taxes & Costs for Foreign Buyers
Transfer tax (stamp duty)
4% of the assessed property value, paid once on registration of ownership.
Annual property tax
0.1% per year of the assessed value above KHR 100 million (~US$25,000).
Rental income tax
10% for resident taxpayers, 14% withholding for non-residents on gross rent.
Capital gains tax
A 20% capital gains tax on individuals has been repeatedly postponed — most recently deferred to 1 January 2027 — and is not currently applied to property sales. Confirm the status at the time of sale.
No estate or wealth tax
Cambodia levies no inheritance or net-wealth tax; strata title is inheritable.
Frequently Asked Questions
Can foreigners buy property in Cambodia?
Yes. Under the 2010 Law on Foreign Ownership, foreigners can directly and legally own condominium units with strata titles above the ground floor, in buildings where foreign ownership does not exceed 70% of the floor area. The title is freehold, registered in your own name, transferable and inheritable.
Can foreigners own land in Cambodia?
No. Land and ground-floor units are reserved for Cambodian citizens. Structures such as nominee arrangements or land-holding companies exist but carry significant legal risk; we advise only direct, law-compliant strata ownership.
How much money do I need to start?
Foreign-quota units in Phnom Penh currently start around US$40,000–50,000, and developer payment plans of 24–48 months mean an initial outlay from roughly US$10,000–15,000 including the down payment.
What rental yield can I realistically expect?
Gross rental yields in Phnom Penh typically range from about 5% to 8% depending on district, product and management — among the higher yields in Southeast Asia. Yields on any specific unit are estimates, never guarantees.
What taxes will I pay when buying?
A one-time 4% transfer tax on registration, an annual property tax of 0.1% of assessed value above ~US$25,000, and tax on rental income (10% residents / 14% non-resident withholding). The 20% capital gains tax for individuals has been deferred to January 2027 and is not currently applied to property sales.
How do off-plan installment plans work?
You typically pay a reservation fee, then 10–30% at contract signing, and the balance in monthly or stage-based installments over 24–48 months during construction — interest-free, directly to the developer, with no bank involved.
Can I buy remotely, without visiting Cambodia?
Yes — many of our clients complete purchases remotely. Contracts can be signed electronically or by courier, and payments are made by international bank transfer in USD. We also arrange video walkthroughs and independent legal representation. An inspection visit is still recommended before handover.
Is my money safe from currency risk?
Cambodian property is priced, sold and rented in US dollars. Rental income and resale proceeds are in USD, and there are no exchange controls preventing repatriation of funds.
What visa options do property owners have?
Property ownership does not itself grant residency, but Cambodia’s E-class (business) visa is straightforward to obtain and renew for long-term stays, and retirement (ER) extensions are available for those aged 55+.
Why work with Invest in Phnom Penh instead of going direct?
We charge buyers nothing — our fee is paid by developers at the same list price you would pay directly. In return you get independent comparison across projects, negotiation support, verified documentation, and coordination with licensed lawyers.