Who can buy property in Cambodia?

Foreign nationals are allowed to own properties such as condominiums or apartments, provided they are not located on the ground floor and do not exceed 70% of the total units in a building. This is made possible under Cambodia’s Foreign Ownership Property Law, which allows foreigners to hold freehold titles for certain types of property. However, foreigners cannot own land directly. If they wish to invest in land, they must do so through a Cambodian entity, such as a locally registered company, or by entering into long-term leases or land-holding agreements.

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Investing in Cambodia's real estate offers a unique opportunity to benefit from a rapidly growing economy, a burgeoning tourism industry, and relatively low property prices compared to other Southeast Asian countries. Cambodia has one of the fastest-growing GDPs in the region, driven by sectors like construction, tourism, and manufacturing, which create a strong foundation for real estate demand.

Key cities like Phnom Penh and Siem Reap offer high rental yields and potential for capital appreciation due to ongoing urban development and increasing foreign direct investment. The hospitality sector in cities like Siem Reap and Sihanoukville benefits from the millions of tourists visiting Cambodia annually, providing excellent opportunities for short-term rental investments. Furthermore, Cambodia’s young and growing population, combined with an expanding middle class, ensures a steady demand for housing and commercial spaces.

With no property taxes on ownership and low transaction costs, the market is also financially appealing. The government’s pro-investor policies, such as allowing 100% foreign ownership of certain property types and tax incentives in special economic zones, further enhance the investment landscape. Overall, Cambodia’s combination of economic growth, investment-friendly regulations, and real estate affordability makes it an attractive destination for property investment.

Below are some sought-after destinations for real estate investment in Cambodia:

• Phnom Penh - As the capital and economic hub of Cambodia, Phnom Penh offers significant opportunities for residential and commercial real estate investment. The city has seen rapid development, with key areas like BKK1, Toul Kork, and Daun Penh becoming hotspots for luxury condominiums, serviced apartments, and office spaces. Phnom Penh’s growing middle class and increasing foreign direct investment make it a prime choice for those seeking high rental yields and long-term capital growth.
• Siem Reap - Known as the gateway to Angkor Wat, Siem Reap is a major tourist destination, making it an ideal location for investment in hospitality-related properties. Boutique hotels, guesthouses, and holiday villas are popular choices for investors. The city’s cultural appeal and a steady stream of international tourists ensure a strong demand for short-term rentals and tourism-driven real estate.
• Sihanoukville - This coastal city has emerged as a prime location for beachfront properties, resorts, and luxury apartments. Known for its beaches and proximity to offshore islands, Sihanoukville attracts both tourists and investors. Recent infrastructure developments, such as the expansion of the port and new highways, have further boosted its investment potential, particularly in the hospitality and residential sectors.
• Battambang - As Cambodia’s second-largest city, Battambang offers a mix of historical charm and modern development. While it is less developed than Phnom Penh or Siem Reap, it is growing steadily, making it an attractive location for those looking for affordable real estate opportunities. Traditional houses and small commercial properties are common investments here.
• Kampot - Famous for its laid-back atmosphere, riverfront scenery, and proximity to Bokor National Park, Kampot is becoming increasingly popular among expatriates and retirees. The city is known for its colonial architecture and tranquil lifestyle, making it a great destination for vacation homes, boutique accommodations, and eco-friendly developments.

Where to find properties online:

• https://www.realestate.com.kh/
• https://www.khmer24.com/

Financing

Foreigners can obtain mortgage loans in Andorra, but there are specific conditions that apply. Banks in Andorra generally offer mortgages to non-residents, although these loans tend to come with stricter requirements compared to loans for residents. Foreign applicants typically need to provide proof of stable income, a valid residence permit (if applicable), or a significant financial background. Additionally, non-residents may be required to make a higher down payment, often around 30-40% of the property value, as banks tend to impose more stringent conditions on foreigners to mitigate risk. The loan amount and terms depend on the applicant's financial situation, the value of the property, and the specific policies of the bank.

Due Diligence and Sales Contract 

Conducting due diligence is a critical component of real estate transactions in Cambodia. This process ensures that properties are free from legal complications such as encumbrances, disputes, or claims that could impede the purchase. It involves verifying the property's title to confirm the seller's legal authority to sell and assessing compliance with local zoning laws, land-use regulations, and environmental considerations that may affect the property's value or intended use.

In Cambodia, the closing process typically involves the services of a legal advisor or consultant who prepares the necessary legal documents, conducts a thorough title search, and facilitates the transfer of ownership. Engaging a qualified legal professional is essential to ensure that the transaction adheres to Cambodian legal standards and that all requisite procedures are meticulously followed. This professional will review all documentation and provide an opinion on the property's title, offering assurance similar to title insurance in other jurisdictions.

Property Buying Costs and Taxes in Cambodia