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What kind of property can foreigners buy in Cambodia?

If you’re considering investing in real estate in Cambodia as a foreigner, it’s essential to understand the rules and regulations. Cambodia offers exciting opportunities for property investment, but there are specific restrictions you need to be aware of. In this article, we’ll explore what properties foreigners can buy and what they cannot.

1. What Can Foreigners Buy?

=> Condominiums and Apartments

Foreign nationals and foreign-owned corporate entities are legally allowed to directly own condominiums and apartments in Cambodia. This is mainly achieved through Strata Titles, which are property ownership certificates issued by the Ministry of Land Management, Urban Planning, and Construction. These titles are recognized on a national level, making them a secure form of property ownership in the Kingdom. However, there’s a crucial restriction: these properties must not be located on the ground floor of a building. So, while foreigners can buy condos and apartments, they cannot own properties on the ground floor.

Full full explanation of Strata Titles you can find here.

=> Offices and Commercial Spaces

Foreigners can also buy office spaces and other commercial properties in Cambodia with Strata Titles.. Similar to condominiums, the ground floor restriction applies here as well. Foreigners can purchase these units, which grants them ownership of the space within the walls of their unit. They do not own the land the building sits on but have a share in the common property of the building.

Full full explanation of Strata Titles you can find here.

2. What Foreigners Cannot Buy?

=>. Land Ownership

Foreign nationals are prohibited from directly owning land in Cambodia. However, there are several workarounds:

  • Nominee System : The structure in Cambodia allows a nominee to hold property on behalf of a foreign owner, offering anonymity and asset protection but requires trust, as the owner relinquishes control. To mitigate risks, nominee security agreements involving lease, loan, mortgage, and trust documents are used to secure the foreign buyer’s interests and prevent unauthorized property transactions
  • Leasing: Foreigners can lease land for extended periods (15-50 years) with renewal options. This offers a secure way to utilise land for businesses or development.
  • Landholding Company:  Foreigners can establish a Cambodian company with a majority Cambodian ownership (at least 51%). This company can then purchase land, providing indirect ownership for the foreigner.
  • Marriage: Marrying a Cambodian citizen grants indirect land ownership through spousal rights. However, this should not be solely motivated by property acquisition.
  • Citizenship: Obtaining Cambodian citizenship is a complex process but allows direct land ownership.
  • Land Concessions: In rare cases, foreigners can invest through land concessions granted by the Cambodian government for specific development projects.

Ta strona jest także dostępna w językach: Polski (Polish)

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