Strata Title Law Cambodia: Legal Guide for Foreign Condo Investment (2025)
Introduction
Cambodia’s real estate market continues to attract foreign investors seeking affordable, high-yield opportunities in Southeast Asia. Among the few legal pathways available, strata title ownership stands out as the only form of direct property ownership permitted for foreigners.
But what exactly is a strata title? How does Cambodian law regulate condo investment for non-citizens? And what legal safeguards should buyers consider before signing a sales agreement?
This 2025 guide breaks down the strata title legal framework, explains key sub-decrees, outlines eligibility requirements, and provides a compliance checklist for foreign condo investors. Whether you’re buying a unit in Phnom Penh, Siem Reap, or Sihanoukville, understanding strata title law is essential for secure ownership.
What Is a Strata Title?
A strata title is a legal certificate of ownership for an individual unit within a co-owned building—such as a condominium, apartment, or office tower. It grants the holder:
✅ Full ownership of the private unit
✅ Shared ownership of common areas (lobbies, pools, gyms)
✅ The right to sell, lease, or transfer the unit
📘 In Cambodia, strata titles are issued by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) and are considered a form of hard title.
Legal Framework: Sub-Decree 126 and Sub-Decree 82
Cambodia’s strata title system is governed by two key legal instruments:
🔹 Sub-Decree No. 126 (2009)
On the Management and Use of Co-Owned Buildings
Defines co-owned buildings and private units
Establishes rules for common area ownership
Sets registration procedures for strata titles
🔹 Sub-Decree No. 82 (2010)
On Foreign Ownership in Co-Owned Buildings
Allows foreigners to own strata-titled units
Limits foreign ownership to 70% of total surface area
Restricts ownership to above-ground floors only
Excludes buildings within 30km of national borders
⚠️ Ground floor and basement units are not eligible for foreign ownership under strata title law.
Strata Title Certificate: What It Includes
The strata title document—officially called the Certificate of Ownership of Private Unit—includes:
Co-owned parcel number
Building name and address
Floor number and unit size
Percentage share of common areas
Owner’s name and ID details
📌 The certificate is issued in Khmer. Foreign buyers must provide translated identity documents and be physically present for fingerprinting and registration.
Eligibility Requirements for Foreign Buyers
To legally own a strata-titled condo in Cambodia, foreign investors must:
Be a natural person (not a foreign company)
Own no more than 70% of the building’s total unit area
Purchase a unit above the ground floor
Avoid buildings within 30km of national borders
Provide certified translations of passport and marital status
Be physically present for fingerprinting and title registration
💡 Tip: Developers must hold a valid hard title for the land before strata titles can be issued. Always verify this during due diligence.
Benefits of Strata Title Ownership
Benefit | Description |
---|---|
✅ Full Ownership | Foreigners can legally own, sell, lease, or transfer their unit |
✅ Shared Amenities | Access to pools, gyms, gardens, and common areas |
✅ Legal Protection | Ownership is backed by hard title and government registration |
✅ Affordability | Condos are often cheaper than landed homes or commercial buildings |
✅ Rental Income Potential | Units can be leased to locals or tourists for passive income |
✅ Resale Flexibility | Titles can be transferred to other foreigners or locals |
⚠️ Risks and Legal Considerations
Risk Type | Description |
---|---|
❌ Developer Fraud | Some developers sell units without valid hard titles |
❌ Overlapping Ownership | Poorly registered buildings may have title disputes |
❌ Border Restrictions | Units near national borders are not eligible for foreign ownership |
❌ Ground Floor Limitation | Foreigners cannot own ground or basement units |
❌ Translation Errors | Incorrect document translations may delay registration |
❌ Management Disputes | Poor governance of common areas may affect property value |
Legal Compliance Checklist
1. Verify Developer’s Hard Title
Confirm land ownership with MLMUPC
Ensure title is eligible for strata division
2. Check Foreign Ownership Ratio
Must not exceed 70% of total unit area
Ask developer for ownership breakdown
3. Confirm Unit Location
Must be above ground floor
Avoid buildings near national borders
4. Prepare Legal Documents
Passport (translated to Khmer)
Marital status certificate
Sales agreement and payment proof
5. Attend Registration in Person
Fingerprinting required
Sign ownership transfer application
6. Pay Transfer Tax
4% of appraised value
Usually paid by buyer unless negotiated
Strata Title vs Other Ownership Structures
Structure | Ownership Type | Foreign Eligibility | Legal Risk | Control Level |
---|---|---|---|---|
Strata Title | Full unit ownership | ✅ Yes | ✅ Low | ✅ High |
Long-Term Lease | Use rights only | ✅ Yes | ✅ Low | ⚠️ Medium |
Nominee Agreement | Title held by Khmer | ✅ Yes | ⚠️ Medium | ✅ High |
Land Holding Company | Khmer-majority firm | ✅ Yes (49%) | ⚠️ Medium | ✅ High |
Trust Holding | Trustee-managed asset | ✅ Emerging | ✅ Low | ✅ High |
FAQ Section
❓ Can foreigners own condos in Cambodia?
Yes, through strata title ownership in co-owned buildings.
❓ What is the 70% rule?
Foreigners can own up to 70% of the total surface area of private units in a building.
❓ Are ground floor units eligible?
No. Only above-ground units qualify for foreign ownership.
❓ Is the strata title a hard title?
Yes. It is issued by MLMUPC and considered a form of hard title.
❓ What taxes apply?
A 4% transfer tax is payable on the appraised value of the unit.
❓ Can I lease out my condo?
Yes. Strata title owners can lease their units to locals or tourists.
👤 Who Is Vichetr Uon?
Vichetr Uon is a Cambodian advisor and strategist specializing in real estate law, investment structures, and digital outreach to foreign investors. Through vichetruon.com, he provides transparent, actionable insights that help investors navigate Cambodia’s legal landscape with clarity and confidence. His work blends legal fluency with strategic monetization—building high-CPC content hubs, legal explainer guides, and investor resources that scale sustainably.❤️ Investing With Impact: The Sao Sary Foundation (SSF)
Every time you choose to work with Vichetr—whether purchasing services, content templates, or premium guides—you’re also supporting something bigger. 🔟 10% of all profits from vichetruon.com are donated to the Sao Sary Foundation (SSF), a nonprofit organization dedicated to empowering Cambodia’s poorest children, their families, and their communities. SSF provides education, support, and community tools that help youth become agents of change for a better future.“Real investment isn’t just about property—it’s about purpose.” — Vichetr Uon
Final Thoughts
Strata title law offers foreign investors a rare opportunity to legally own property in Cambodia. But true ownership comes with informed decision-making. By understanding Sub-Decrees 126 and 82, verifying compliance, and securing legal support, investors can confidently acquire condos backed by hard titles and full transferability.
Whether you’re seeking rental income, capital appreciation, or a foothold in Southeast Asia’s rising market, strata title investment can be your strategic entry point—both secure and socially responsible.
And when your condo investment is complete, it becomes a catalyst for change—funding education, health, and hope through the mission of SSF.