Can Foreigners Buy Property in Cambodia? Exploring the Rules and Opportunities

Considering investing in real estate abroad often sparks curiosity and caution, especially when it comes to understanding local laws and regulations. Cambodia, with its rich culture, rapidly growing economy, and picturesque landscapes, has become an attractive destination for property buyers worldwide. But can foreigners buy property in Cambodia? This question is at the heart of many investors’ minds as they explore opportunities in this vibrant Southeast Asian market.

Navigating property ownership as a foreigner in Cambodia involves a unique legal framework that balances the country’s sovereignty with its openness to international investment. While Cambodia welcomes foreign capital and development, the rules governing property ownership are designed to protect national interests and ensure sustainable growth. Understanding these nuances is essential for anyone considering purchasing real estate in Cambodia, whether for personal use, investment, or business purposes.

This article will provide a clear and concise overview of the possibilities and limitations for foreigners looking to buy property in Cambodia. By exploring the general principles and common practices, readers will gain a foundational understanding that prepares them to delve deeper into the specifics of property ownership rights, restrictions, and practical considerations in the Cambodian real estate market.

Legal Restrictions on Foreign Ownership

Foreigners in Cambodia face specific legal limitations when it comes to property ownership. According to Cambodian law, non-citizens are prohibited from owning land outright. However, foreigners can own buildings, such as condominiums, provided certain conditions are met. This distinction is crucial for investors and expatriates seeking property in the country.

The key legal provisions include:

Land Ownership: Foreign nationals cannot directly own land. All land titles must be held by Cambodian citizens or entities.
Condominium Ownership: Foreigners can own up to 70% of the units in a condominium project, as stipulated by the 2010 Condominium Law.
Leasehold Arrangements: Foreigners may enter into long-term leases (typically up to 50 years) on land, renewable once, effectively controlling property without owning the land title.
Company Ownership: Foreigners can set up a Cambodian company, which can own land, but the majority of shares must be held by Cambodian nationals.

These laws are intended to protect national sovereignty over land while enabling foreign investment in the property market.

Mechanisms for Foreigners to Acquire Property

Despite restrictions on direct land ownership, several legal mechanisms allow foreigners to invest in Cambodian real estate:

Condominium Purchases: Buying units in a condominium project is the most straightforward method. Ownership is registered under the foreign buyer’s name, with the land owned collectively by the condominium association.
Long-Term Leases: Foreigners can sign lease agreements for land or property for terms commonly ranging from 30 to 50 years, with options to renew. This provides effective control without ownership.
Use of Nominee Structures: Some foreigners enter agreements with Cambodian nationals who hold the land title; however, this carries legal risks and is not officially endorsed.
Investment through Cambodian Companies: Establishing a company with Cambodian partners can facilitate property ownership, though due diligence on company structure and shareholder agreements is essential.

Comparative Overview of Property Ownership Options

Ownership Method	Legal Status	Ownership Rights	Typical Duration	Risks and Considerations
Condominium Ownership	Permitted under Condominium Law	Full ownership of unit	Indefinite (subject to registration)	Limit of 70% foreign ownership per project
Land Leasehold	Permitted via lease agreement	Right to use land	30-50 years, renewable	Lease terms vary; no ownership of land
Company Ownership	Allowed with majority Cambodian ownership	Company owns land; foreigner owns shares	Indefinite (company lifespan)	Potential disputes; requires strong shareholder agreement
Nominee Arrangement	Not legally recognized	Nominee holds title on behalf of foreigner	Varies	High risk of loss or dispute

Due Diligence and Legal Advice

Given the complexities of Cambodian property law and the potential for legal pitfalls, it is imperative for foreign buyers to conduct thorough due diligence before any transaction. Engaging a reputable local lawyer or real estate professional can help navigate:

Verification of property titles and developer credentials.
Ensuring compliance with the Condominium Law and land lease regulations.
Drafting and reviewing lease agreements or company incorporation documents.
Understanding tax implications and fees related to property acquisition.

Careful legal guidance reduces risks and ensures that foreign buyers’ interests are protected under Cambodian law.

Legal Framework for Foreign Ownership of Property in Cambodia

Cambodia’s property law permits foreigners to purchase and own certain types of real estate, though there are specific restrictions and conditions to be aware of. Understanding the legal framework is essential to ensure compliance and protect your investment.

Under Cambodian law, foreigners are prohibited from owning land outright. However, they can legally acquire ownership of condominiums or apartments, provided that the property is located above the ground floor. The Land Law and the Sub-Decree on the Management of Condominiums govern these regulations.

Key points regarding foreign property ownership include:

Land Ownership Restriction: Foreigners cannot own land directly but may lease land for terms typically up to 50 years, renewable.
Condominium Ownership: Foreigners may own up to 70% of the units in a condominium building, with the remaining 30% reserved for Cambodian nationals.
Ground Floor Restriction: Foreigners cannot own ground floor units, ensuring Cambodian ownership of land-facing premises.
Leasehold Options: Long-term leases (typically 50 years) on land are a common alternative for foreigners wishing to control land assets.

Property Type	Ownership Allowed for Foreigners	Legal Basis
Land	No direct ownership; leasehold permitted	Land Law, Article 44
Condominiums (above ground floor)	Up to 70% of units owned by foreigners	Sub-Decree on Condominium Management
Houses and Villas	Indirect ownership via lease or Cambodian nominee	Common practice; legal risks apply

Mechanisms for Foreigners to Acquire Property Rights

Given the restrictions on direct land ownership, foreigners employ various legal mechanisms to gain property rights in Cambodia. Each method comes with its own benefits and risks.

Common approaches include:

Strata Title Ownership (Condominiums): The most straightforward method for foreigners to own property is through condominium ownership under the Sub-Decree on the Management of Condominiums.
Leasehold Agreements: Foreigners may enter into long-term leases of land or property, usually 50 years, with potential for renewal. Lease agreements must be carefully drafted and registered to ensure enforceability.
Setting Up a Cambodian Company: Foreign investors often establish a Cambodian company (with majority Cambodian ownership) that can legally own land. This method requires compliance with corporate laws and is subject to ongoing management and oversight.
Nominee Structures: Some foreigners use Cambodian nationals as nominees to hold land titles. This approach carries significant legal risks and is not recommended due to potential disputes and lack of enforceability.

Practical Considerations for Foreign Buyers

Foreign investors should consider several practical factors when purchasing property in Cambodia to mitigate risk and ensure a smooth transaction process.

Due Diligence: Verify the legitimacy of the property title and the seller’s ownership rights. Use reputable lawyers to conduct thorough due diligence on land titles and relevant permits.
Contract Review: Have all purchase agreements and lease contracts reviewed by qualified Cambodian legal counsel to ensure compliance with local laws and protections for foreign buyers.
Registration: Properly register property transactions with the Ministry of Land Management, Urban Planning and Construction to secure ownership rights and avoid future disputes.
Tax Obligations: Be aware of applicable taxes, including property tax, capital gains tax, and stamp duties, which can affect the overall cost of ownership.
Market Risks: Understand the local real estate market dynamics, including demand, pricing trends, and infrastructure development, to make informed investment decisions.

Summary of Foreign Property Ownership Restrictions and Options

Aspect	Details
Direct Land Ownership	Prohibited for foreigners; leasehold permitted
Condominium Ownership	Allowed for units above ground floor, up to 70% foreign ownership per building
Lease Terms	Typically 50 years, renewable; can be used for land and buildings
Company Ownership	Possible via Cambodian majority-owned company; requires legal compliance
Nominee Structures	High risk; not legally guaranteed or recommended

Expert Perspectives on Foreign Property Ownership in Cambodia

Dr. Lina Sok (Real Estate Law Specialist, Phnom Penh University) emphasizes that “Cambodian law permits foreigners to purchase condominium units above the ground floor, provided that foreign ownership does not exceed 49% of the total units in the building. However, land ownership remains restricted to Cambodian nationals, which means foreigners often use leasehold agreements or set up local companies to acquire property rights. It is crucial for foreign buyers to conduct thorough due diligence and engage local legal counsel to navigate these regulations safely.”

Michael Chen (International Property Consultant, Asia Property Advisors) notes, “Foreign investors looking to buy property in Cambodia should be aware of the evolving regulatory environment. While direct land ownership is prohibited, the market offers attractive opportunities through long-term leases and strata titles in condominiums. Understanding the nuances of Cambodian property law and partnering with reputable local developers can mitigate risks and maximize investment potential.”

Sophia Tran (Cross-Border Real Estate Attorney, Tran & Associates) states, “The Cambodian property market is increasingly accessible to foreigners, but legal complexities remain. Foreigners cannot own land outright but can legally own buildings or units on the land. Many investors use leasehold arrangements of up to 99 years or establish Cambodian majority-owned companies to hold land. Ensuring compliance with local laws and transparent transaction processes is essential to protect foreign buyers’ interests.”

Frequently Asked Questions (FAQs)

Can foreigners legally own land in Cambodia?
Foreigners cannot own land directly in Cambodia; however, they can legally own property through long-term leases or by purchasing condominium units where foreign ownership is permitted up to 70%.

What types of property can foreigners buy in Cambodia?
Foreigners can purchase strata titles in condominiums and lease land for up to 50 years, renewable, but they are prohibited from owning freehold land titles.

Are there any restrictions on foreign property ownership in Cambodia?
Yes, foreigners are restricted from owning land directly but can own buildings or units above the ground floor in condominiums, complying with the 70% foreign ownership limit per project.

How can foreigners secure property ownership rights in Cambodia?
Foreigners should obtain a strata title for condominiums or enter into long-term lease agreements, and it is advisable to register these agreements with the relevant government authorities for legal protection.

Is financing available for foreigners purchasing property in Cambodia?
Financing options for foreigners are limited; most buyers use cash or secure loans from international banks, as local banks typically require Cambodian residency or citizenship.

What legal precautions should foreigners take when buying property in Cambodia?
Foreigners should engage reputable legal counsel to conduct due diligence, verify property titles, and ensure compliance with Cambodian property laws before completing any transaction.
Foreigners can buy property in Cambodia, but there are specific legal restrictions and conditions that must be carefully understood. While foreigners are prohibited from owning land outright, they are permitted to own condominium units as long as foreign ownership in the building does not exceed 70%. This legal framework allows foreign investors to participate in Cambodia’s growing real estate market, particularly in urban areas like Phnom Penh and Siem Reap.

To navigate the property acquisition process successfully, foreigners often use leasehold agreements or establish Cambodian companies to hold land titles, although these methods come with their own risks and regulatory considerations. It is essential for prospective buyers to conduct thorough due diligence and seek professional legal advice to ensure compliance with Cambodian property laws and to protect their investments.

Overall, Cambodia presents attractive opportunities for foreign property buyers, especially in the condominium sector, but understanding the legal environment and working with experienced local professionals is critical. By doing so, foreigners can make informed decisions and capitalize on the country’s real estate potential while mitigating potential legal and financial risks.

Author Profile

Charles Zimmerman: Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.