Strata Title Condo Investment in Cambodia: Foreign Ownership Guide (2025)
Cambodia’s real estate market has emerged as one of Southeast Asia’s most dynamic investment frontiers—drawing interest from expats, international developers, and foreign retirees seeking stability, returns, and regional access. Yet despite its momentum, one question dominates investor conversations:
Can foreigners legally own property in Cambodia—and if so, what are the safest options?
The answer lies in a powerful yet often misunderstood legal tool: the strata title. This framework unlocks legitimate, direct ownership rights over condominium units for non-Khmer nationals, offering both asset control and scalable income potential—without the risks of nominee arrangements or long-term leaseholds.
In this 2025 guide, we’ll explain how strata title works, how to register a condo properly, and how you can maximize returns while remaining compliant with Cambodian law. Whether you’re a cautious first-timer or a seasoned investor exploring Phnom Penh or Siem Reap, this article will serve as your roadmap to clarity, legality, and success.
What Is a Strata Title?
Strata title is a legal mechanism that allows individuals to own units in a shared property complex—most commonly condominiums. In Cambodia, this system became codified with the Law on Co-Owned Buildings (2009), opening the door for foreign nationals to legally invest in residential property without owning the land beneath it.
Quick Definition:
A strata title grants ownership rights over an individual condo unit within a co-owned building structure, including shared access to common areas like lobbies, stairwells, gyms, or swimming pools.
For foreigners, this is often the only legal avenue for direct property ownership under Cambodian law—making it essential for those seeking long-term residence, rental income, or capital growth in the Kingdom.
Foreign Ownership Regulations
Land Ownership Restrictions
Cambodian law prohibits foreigners from owning land directly, per Article 44 of the Cambodian Constitution:
“Only natural persons or legal entities of Khmer nationality shall have the right to land ownership.”
This restriction extends to hard titles, agricultural land, and freestanding villas.
What Foreigners Can Own
Thanks to strata title law, foreigners can:
- Own condos above the ground floor
- Purchase commercial units in co-owned buildings
- Sell, transfer, or rent out strata-titled units
- Participate in building management committees
However, the land beneath the building must be owned by a Khmer legal entity, and foreigners can only own up to 70% of units in any co-owned development.
Best Areas to Invest in Cambodia Condos
The Cambodian condo market has matured rapidly in urban centers. Here’s where savvy investors are focusing in 2025:
Phnom Penh
- BKK1: Popular among diplomats and professionals
- Tonle Bassac: High-rise modern condos with river views
- Chamkarmon: Vibrant, walkable district with rising mid-range offerings
Siem Reap
- Tourism-focused units, boutique designs
- Favorable rental yields with short-stay potential
Sihanoukville
- Beachfront developments (caution: volatile market)
- Watch for strata certification before investing
How to Register a Strata Title in Cambodia
Foreigners must follow precise legal steps to register and protect their investment:
Step-by-Step Process:
- Select a Qualified Project
- Confirm the building has strata title approval
- Hire a Legal Agent
- Work with a real estate attorney or licensed trust company
- Sign Purchase Agreement
- Ensure inclusion of price, timelines, terms, and developer responsibilities
- Due Diligence
- Title search, developer license, strata quota compliance
- Transfer Title
- File paperwork with the Ministry of Land Management and local Cadastral Office
- Tax Payment
- Transfer tax is 4% of assessed value
Strata Title vs Hard Title
Let’s compare Cambodia’s two most common property title systems:
| Feature | Strata Title | Hard Title |
|---|---|---|
| Ownership Rights | Individual condo unit | Entire land + structures |
| Foreign Eligibility | ✅ Allowed (above ground floor) | ❌ Restricted |
| Transferable | ✅ Yes | ✅ Yes |
| Government Record | National-level record | National-level record |
| Associated Risk | Minimal (with legal support) | High (for foreigners) |
Learn more about: strata title vs hard title Cambodia
Why Choose a Strata Title Condo?
For foreign investors, strata title offers:
Legal Ownership
No nominee structure or leasehold needed. You hold the title directly—subject to Cambodian property law.
Passive Income
Rental yields from premium condos in Phnom Penh range from 6–9% annually. Tourism-focused areas like Siem Reap offer even higher short-term return potential.
Capital Growth
Urban developments in Phnom Penh’s central districts (BKK1, Tonle Bassac) have seen price appreciation up to 12–15% per year, especially for foreigner-friendly properties.
Investor Scenarios
Case 1: Expat in Phnom Penh
James, a tech consultant, lives in Cambodia under a business visa and wants long-term stability. He purchases a strata-titled condo in Chamkarmon, registered under his own name. Legal agents confirm the building quota is within the 70% foreign ownership threshold. James registers the title and rents it out while he travels. He avoids nominee risk and earns 7.5% ROI.
Case 2: Singaporean Investor
An investor named Michelle is interested in Cambodia’s real estate boom but lives abroad. She buys a strata-titled property in BKK1 for $120,000 through a Cambodian agent. The deal includes all tax obligations and a property management agreement. Her unit earns consistent monthly rent and doubles as a business hosting space when she visits.
Required Documents
To legally purchase and register a strata title unit in Cambodia, foreigners need:
- Valid passport
- Visa or residence permit (if applicable)
- Title deed or sale agreement
- Proof of tax payment
- Developer certification or strata quota approval
- Application for registration with the Ministry of Land Management
Some investors also opt to hold property via a legal entity, but that’s beyond the scope of pure strata ownership.
Taxation Guide
Here’s a breakdown of applicable taxes:
| Tax Type | Rate | Description |
|---|---|---|
| Transfer Tax | 4% | Payable upon title registration |
| Rental Income Tax | Up to 14% | May be reduced via trust structure |
| Capital Gains Tax | 20% | When reselling at a profit |
| Annual Property Tax | 0.1% | For properties valued >$25,000 |
Cambodia condo tax for foreigners
Common Mistakes to Avoid
- 🚫 Buying unregistered units with no strata approval
- 🚫 Ignoring developer reputation or legal history
- 🚫 Exceeding the 70% foreign ownership quota in buildings
- 🚫 Skipping legal reviews on title validity
- 🚫 Not verifying land ownership under building
Explore More Cambodia Real Estate Topics
Frequently Asked Questions
Can foreigners own condos in Cambodia?
✅ Yes. Under the 2009 Law on Co-Owned Buildings, foreigners can own strata-titled condominium units above the ground floor in legally registered co-owned buildings. This is currently the only direct ownership path available without requiring land ownership or nominee arrangements.
Is a nominee or lease structure required for condo investment?
❌ No. If the building is properly registered under Cambodia’s strata title law, you can own the unit outright—in your own name—without involving a Khmer nominee or entering into a leasehold agreement. This eliminates legal ambiguity and preserves your control over the asset.
What is the difference between strata title and hard title?
- Strata Title: Ownership of a specific condo unit in a co-owned building (✅ allowed for foreigners).
- Hard Title: Full ownership of land or freestanding buildings (❌ not permitted for foreigners unless structured via company or trust).
Learn more at: Strata Title vs Hard Title Cambodia
What are the risks of buying a condo without strata title?
Buying into a building that lacks strata certification can result in:
- Inability to register ownership
- Legal disputes over transfer rights
- Tax complications
- Potential loss of investment if development is shut down
Always verify legal documents and consult with a licensed agent or attorney.
Can I rent out my condo for income?
✅ Absolutely. Many foreign investors earn consistent returns (6–9% annually) by renting out strata-titled units—especially in Phnom Penh or Siem Reap. Be sure to declare rental income and pay applicable taxes.
