Can Foreigners Own Land in Cambodia? Legal Guide & Ownership Strategies (2025)

Foreign investor reviewing legal documents for land lease in Cambodia

🇰🇭 Introduction: Why Cambodia?

Cambodia has emerged as one of Southeast Asia’s most attractive real estate markets. With its booming tourism, low cost of living, and investor-friendly policies, many foreigners are asking: can foreigners own land in Cambodia?

The short answer is no, not directly. But the long answer? It’s far more nuanced—and full of opportunity.

In this guide, we’ll break down:

  • What the Cambodian Constitution says
  • Legal workarounds for foreign investors
  • The safest and riskiest methods
  • Tax implications and title types
  • Real-life examples and expert tips

Let’s dive in.

 

📜 What the Law Says: Article 44 of the Cambodian Constitution

According to Article 44 of the Cambodian Constitution:

“Only natural persons or legal entities of Khmer nationality shall have the right to land ownership.”

This means foreigners cannot legally own land in their name. However, Cambodia’s real estate market has evolved to accommodate foreign investors through indirect ownership models.

 

🏢 What Can Foreigners Own in Cambodia?

While land is off-limits, foreigners can legally own:

  • Strata-titled condominiums (from the 1st floor up)
  • Commercial units in co-owned buildings
  • Buildings without land (e.g., apartments, offices)

These are governed by the 2009 Law on Co-Owned Buildings, also known as the Strata Title Law.

✅ Tip: Always verify that the condo has a registered strata title before purchasing.

 

🛤️ Legal Alternatives: How Foreigners Can Control Land in Cambodia

Here are the top 5 legal methods foreigners use to gain land rights in Cambodia:

1. 🧾 Long-Term Leasehold Agreements

  • Foreigners can lease land for 15 to 50 years, renewable up to 99 years
  • Lease agreements can include clauses preventing sale without lessee consent
  • Leases can be registered with the Cadastral Office for added protection

Pros:

  • Simple and affordable
  • Legally recognized
  • Suitable for residential or commercial use

Cons:

  • No ownership rights
  • Limited resale value
 

2. 🧑‍🤝‍🧑 Nominee Structure

  • A Cambodian citizen holds the land title on behalf of the foreigner
  • A trust agreement outlines the foreigner’s control and rights
  • Often paired with a mortgage agreement to prevent unauthorized sale

Pros:

  • Common and cost-effective
  • Allows full control over the property

Cons:

  • Risk of nominee betrayal
  • Not legally bulletproof
  • Requires high trust or professional service

⚠️ Warning: Always use a licensed law firm or real estate agency as your nominee—not a friend or spouse.

 

3. 🏢 Land Holding Company (LHC)

  • Foreigners form a joint venture company with 51% Cambodian ownership
  • The company owns the land, and the foreigner controls it via Power of Attorney

Pros:

  • Legal and secure
  • Suitable for large-scale investments
  • Allows multiple property holdings

Cons:

  • High setup and maintenance costs
  • Requires annual tax filings and audits
 

4. 🏦 Trust Holdings (Post-2019 Trust Law)

  • Foreigners can set up a registered trust to hold land
  • Trustees manage the land on behalf of the foreign investor
  • Offers asset protection and succession planning

Pros:

  • Legally recognized
  • Protects against nominee risks
  • Ideal for estate planning

Cons:

  • Setup costs: $3,000+
  • Annual fees: $1,500–$2,500
  • Still a developing legal framework
Explore structure examples via Generis Online: Legal Framework Overview.
 

5. 🇰🇭 Cambodian Citizenship

  • Foreigners can apply for citizenship (apply through Cambodia Investment Board (CDC)) after:
    • 7 years of residency
    • Fluency in Khmer
    • Significant investment or donation

Pros:

  • Full land ownership rights
  • No legal workaround needed

Cons:

  • Time-consuming and expensive
  • Not guaranteed
 

🏷️ Types of Property Titles in Cambodia

Understanding land titles is crucial for any investment:

Title TypeDescriptionCan Foreigners Use It?
Hard TitleRegistered at national level; strongest legal proof✅ (via lease or company)
Soft TitleRecognized locally; not registered nationally⚠️ Risky for foreigners
Strata TitleFor condos and co-owned buildings✅ Fully legal
LMAP TitleDigitally mapped and registered✅ Secure and preferred
 

📌 Pro Tip: Always aim for hard or LMAP titles when leasing or investing.

 

💰 Taxation & Fees for Foreign Investors

Here’s what you need to budget for:

  • Transfer Tax: 4% of government-assessed value (usually paid by seller)
  • Withholding Tax: 14% on rental income (if not structured properly)
  • Capital Gains Tax: 20% (introduced in 2020)
  • Annual Property Tax: 0.1% on properties worth over $25,000

💡 Consider hiring a tax advisor to optimize your investment structure.

More details at DaBest Properties Guide.
 

🧠 Real-Life Scenarios

Scenario 1: Digital Nomad in Phnom Penh

  • Buys a strata-titled condo on the 5th floor
  • Registers under their name
  • Pays 0.1% annual property tax
  • Fully legal and safe

Scenario 2: Investor in Siem Reap

  • Leases land for 50 years to build a boutique hotel
  • Registers lease with Cadastral Office
  • Includes renewal and resale clauses
  • Avoids nominee risks

Scenario 3: Retiree in Kampot

  • Uses a nominee structure with a law firm
  • Buys a riverside villa
  • Registers a mortgage in their name
  • Gains full control with legal safeguards
 

🧭 Choosing the Right Strategy

GoalBest Option
Short-term stayLease or condo
Long-term residenceLease or nominee
Business investmentLand Holding Company
Estate planningTrust or citizenship
High-value propertyLHC or Trust
 
 

🛡️ Risks to Watch Out For

  • Unregistered titles (especially soft titles)
  • Untrustworthy nominees
  • Unclear lease terms
  • Overlapping land claims
  • Unlicensed agents

✅ Always conduct due diligence and work with licensed professionals.

 

📈 Why Cambodia Still Attracts Foreign Investors

Despite restrictions, Cambodia remains a hot market for:

  • High rental yields (6–10%)
  • Low property prices
  • No foreign ownership tax
  • Fast-growing tourism and infrastructure
 

🧾 Final Checklist Before You Invest

✅ Verify title type

✅ Hire a local lawyer

✅ Choose the right ownership model

✅ Register all agreements

✅ Understand tax obligations

✅ Use licensed agents and trustees

 

📝 Conclusion: So, Can Foreigners Own Land in Cambodia?

Technically, no. But practically? Yes—with the right legal structure.

Whether you’re a digital nomad, retiree, or investor, Cambodia offers multiple pathways to control and profit from land—even if you can’t own it outright.

By understanding the legal landscape and choosing the right strategy, you can safely invest in one of Southeast Asia’s most promising real estate markets.

 

🔍 Frequently Asked Questions (FAQs)

Q: Can foreigners buy land in Cambodia? A: Not directly. But they can lease, use a nominee, form a company, or set up a trust.

Q: Is it safe to use a nominee? A: Only if done through a licensed law firm or real estate agency with legal safeguards.

Q: Can I own a house in Cambodia? A: Yes, but not the land it sits on—unless you use one of the legal structures mentioned.

Q: How long can I lease land in Cambodia? A: Up to 50 years, with renewal options for another 50 years.