How to Own a House in Cambodia if You are a Foreigner?

Cambodia is a beautiful country with a rich culture and history. Many foreigners are attracted to its natural beauty, friendly people, and low cost of living. However, owning a house in Cambodia as a foreigner can be challenging and complicated. In this blog post, we will explain the legal framework, the options, and the risks of buying property in Cambodia as a foreigner.

Legal Framework

According to the Cambodian Constitution, foreigners are not allowed to own land in Cambodia. This means that foreigners cannot buy land or houses that are built on the ground. However, foreigners can own apartments or condominiums that are above the ground floor, as long as they are registered as co-owned buildings and the foreign ownership does not exceed 70% of the total floor area. This law was introduced in 2010 to encourage foreign investment and development in the real estate sector.

Options

There are several options for foreigners who want to own a house in Cambodia, depending on their budget, preference, and risk tolerance. Here are some of the most common ones:

1. Buy a condominium or apartment above the ground floor.?

This is the easiest and safest option for foreigners who want to own property in Cambodia. However, it can also be the most expensive one, as the prices of condominiums and apartments in Cambodia are relatively high compared to other countries in the region. Moreover, foreigners have to pay a 4% transfer tax when buying a condominium or apartment, as well as annual property taxes and maintenance fees.

2.? Buy land or a house through a local nominee.

?This is a risky option that involves using a Cambodian citizen as a proxy to buy land or a house on behalf of the foreigner. The foreigner and the nominee sign a contract that grants the foreigner full rights and control over the property, while the nominee holds the title deed.?This an accepted practice in Cambodia since most foreigners desire to put up investments in real estate in this beautiful country. Should you not want to have this option, the third one might give you a better alternative.

3. Buy land or a house through a company.?

This is another option that involves setting up a Cambodian company with at least 51% of Cambodian shareholders and using it to buy land or a house. The foreigner can be the director and manager of the company and have full control over the property. However, this option is also costly and complicated, as it requires registering and maintaining a company, paying taxes and fees, and complying with various regulations and reporting requirements.

Conclusion

Owning a house in Cambodia as a foreigner is possible but not easy. It requires careful research, planning, and due diligence before making any decision or investment. It also requires being aware of the legal framework, the options, and the risks involved in buying property in Cambodia as a foreigner. While owning a house in Cambodia can be rewarding and fulfilling for some foreigners who love the country and its culture, it can also be frustrating and disappointing for others who encounter difficulties and obstacles along the way.

Contact us so we can help you understand Cambodian law and real estate ownership. We are licesned and certified to help you own your first home in the Kingdom of Cambodia