Can a foreigner own a property (Considering they can’t purchase land) in Cambodia?
Cambodia’s real estate market has become increasingly attractive to foreign investors, thanks to its rapid urban development, affordable property prices, and investor-friendly policies. Yet, one question continues to surface among international buyers: Can a foreigner own property in Cambodia?
The short answer is yes—but with important limitations. While Cambodian law prohibits foreigners from owning land outright, there are several legal avenues that allow non-Cambodians to own property such as condominiums, apartments, and commercial units. This article explores the legal framework, ownership structures, and practical considerations that every foreign investor should understand before entering the Cambodian property market.
Understanding the Legal Landscape: Land vs. Property Ownership
According to Article 44 of the Cambodian Constitution, only Cambodian citizens or legal entities with at least 51% Cambodian ownership can own land. This means that foreigners cannot directly own land in Cambodia under any circumstance.
However, the Foreign Ownership Property Law of 2010 introduced a major shift by allowing foreigners to own strata-titled units—a form of co-ownership in multi-story buildings. This law opened the door for foreign nationals to legally own condominiums, apartments, and commercial spaces, provided certain conditions are met.
What Is a Strata Title?
A strata title is a certificate of ownership issued by the Ministry of Land Management, Urban Planning, and Construction. It allows individuals—both Cambodians and foreigners—to own private units within a co-owned building, such as a condominium or office tower.
Strata titles are recognized at the national level and offer legal protection, including:
- The right to sell, lease, or transfer the unit
- Protection against demolition or redevelopment without consent or compensation
- Access to shared facilities such as lobbies, elevators, and parking areas
3 Property Types Foreigners Can Legally Own in Cambodia
Let’s break down the three most common types of properties foreigners can own in Cambodia, along with the legal conditions attached to each.
1. Condominium
Yes, foreigners or non-Cambodians are legally allowed to directly own condominiums in Cambodia. This is mainly achieved through Strata Titles – 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.
It also depends on what nationality you, the agent, or developer may be. Most Australians, for example, are more likely to resonate with the term “Apartment” while Americans and Chinese resonate with the term “Condominium”.
Cambodians on the other hand will generally associate an older unit as an “Apartment” whilst considering the new most recently completed one as a “Condominium”.
In 2009, strata titles were introduced and allowed foreign nationals to fully own private units of co-owned buildings in Cambodia. The only fine print in relation to this is that the units within a condominium or strata-titled office must be 30% locally owned, and foreigners can not own properties within that building on the ground floor. Simply put, if a building has a total of 100 units, 30 of those must be owned by Cambodians.
2. Apartments
Foreigners can also own apartment units, provided they meet the same conditions as condominiums:
- The unit must not be on the ground floor
- Foreign ownership in the building must not exceed 70%
However, not all apartment buildings are registered for strata titles. It’s crucial to verify the legal status of the property before purchasing. Working with a reputable real estate agent or legal advisor can help ensure compliance.
3. Offices
Foreigners are also permitted to own commercial units such as:
- Office spaces
- Retail shops
- Restaurant units
- Shopping mall spaces
These properties fall under the same legal framework as residential strata titles. As long as the unit is not on the ground floor and the building complies with the 70% foreign ownership cap, foreigners can legally own commercial property in Cambodia.
What Foreigners Cannot Own
Despite the flexibility offered by strata titles, there are still clear restrictions:
- Land ownership is strictly prohibited for foreigners
- Ground-floor units in co-owned buildings are off-limits
- Properties within 30 kilometers of international borders are restricted unless located in special economic zones
Alternative Legal Structures for Land Control
If you’re a foreign investor interested in land-based developments (e.g., villas, resorts, or agricultural projects), there are indirect ownership options to consider:
1. Long-Term Lease
Foreigners can lease land for up to 50 years, with the option to renew. This is a popular method for building homes or commercial projects without owning the land.
2. Land-Holding Company
You can form a Cambodian company with at least 51% local ownership. While this gives you indirect control, it requires a trustworthy local partner and legal safeguards.
3. Trust Structures
Under Cambodia’s Trust Law (2019), licensed trustees can hold land on behalf of foreign investors. This is a newer, more secure option but involves higher setup costs and regulatory oversight.
Due Diligence: What Every Foreign Buyer Should Do
Before purchasing property in Cambodia, make sure to:
- Verify the strata title with the Ministry of Land Management
- Conduct a title search to ensure the property is free of disputes
- Hire a local lawyer to review contracts and ensure compliance
- Understand tax obligations, including:
- 4% property transfer tax
- 10% rental income tax
- 20% capital gains tax (if applicable)
Frequently Asked Questions
Q: Can I get a mortgage in Cambodia as a foreigner? Yes, some Cambodian banks offer mortgages to foreigners, though terms may vary. You’ll typically need a valid visa, proof of income, and a down payment of 30–50%.
Q: Does owning property grant me residency? No, property ownership does not automatically grant residency. However, it can support your application for a business or retirement visa.
Q: Can I rent out my property? Absolutely. Many foreign investors purchase condos or apartments for rental income, especially in tourist-heavy areas like Phnom Penh and Siem Reap.
Final Thoughts: Yes, You Can Own Property in Cambodia—With the Right Knowledge
While Cambodia’s property laws may seem restrictive at first glance, they actually offer clear and legal pathways for foreigners to invest in real estate. Whether you’re looking to buy a condo for personal use, an apartment for rental income, or a commercial unit for your business, the key is to understand the rules and work with trusted professionals.
With the right guidance, Cambodia can be a rewarding and secure destination for foreign property ownership.
Need Help Navigating Cambodian Real Estate?
At Adaeng Development Co., Ltd, we specialize in helping foreign investors:
- Secure strata-titled properties
- Navigate legal and tax requirements
- Structure long-term leases or land-holding companies
- Manage property acquisition and development
📩 Contact us today at www.adaeng.co or email us at adaengdev@gmail.com for personalized advice and support. Let’s turn your investment vision into reality—safely and legally.
