Cambodia has a vast amount of unoccupied and undeveloped land, particularly in some of its major cities like Phnom Penh, Siem Reap, and Sihanoukville. Currently, under Cambodian law, it is not legally possible for foreign individuals or entities to outright own landed property or real estate within the country. However, there are several mechanisms and structures that allow foreigners to invest in and gain some form of access to Cambodian land and real estate, even without direct ownership.  

• Investing through a Cambodian company 
  • Foreign investors can invest in Cambodia by holding shares in a Cambodian company. The ownership structure must be 51% held by Cambodian citizens and 49% held by foreign investors. With this ownership arrangement, the foreign investor can purchase and own land in Cambodia. 
• Trusted Services 
  • A trust service allows you to entrust your property interests to a trustee. The legal ownership of the property is transferred to the trustee, who then safeguards your investment as the beneficiary. In Cambodia, a trust law was passed in 2019, and there are several institutions that now provide trust services to foreign investors. 
• Long-term leasing agreement  
  • A long-term lease does not provide permanent ownership of a landed property, but it can serve as an alternative option where the land lease is secure typically for 50 years. The lease can also be extended up to 99 years, which grants the lessee substantial control over the use of the property during the leasing period, even though full ownership is not obtained. 
• The Nominee structures  
  • In a nominee structure, a Cambodian citizen holds the legal title to a property on your behalf, while you retain the right to control the property through a contractual agreement. However, this method is not generally recommended, as it may involve some legal complexities and potential disputes. 

Of the different property title types in Cambodia, foreigners are only allowed to own properties with a Strata Title/Co-ownership. In 2009, Cambodia introduced Strata Titles to let foreign nationals fully own private units within shared (co-owned) buildings. This was done to encourage foreign investment and provide housing for foreigners living in Cambodia. Strata Titles apply to both residential and commercial properties in co-owned buildings. In these buildings, each unit has a private owner, but there are also common spaces that everyone shares. Foreigners can own up to 70% of a co-owned building, but they cannot own the ground floor units. At least 30% of the building must be owned by Cambodian citizens. 

Fees and Taxes to acquire a strata title 

• When converting a hard title to a strata title, or when transferring a strata title to a new buyer in Cambodia, there are some fees you have to pay. This includes a fee for changing the title to a strata title, a fee for each time the strata title is transferred to a new owner, and a 4% tax on the sale price or the government’s estimated value of the condo, whichever is higher. The process involves submitting documents to the Ministry of Land Management, who will review and approve them. Then you have to pay the 4% transfer tax to the General Department of Taxation. After the tax is paid, the Ministry of Land Management will finalize the title transfer, but both the buyer and the seller must be present for this. This means that if you buy a condo off-plan, you’ll need to return to Cambodia for the final paperwork and to receive the strata title.