Understanding Cambodian Real Estate Laws: A Guide for Foreign Investors
Thinking of investing in Cambodia? With its growing economy, strategic location in Southeast Asia, and pro-investment stance, the Kingdom of Cambodia is becoming an increasingly attractive destination for foreign real estate buyers.
However, navigating Cambodian property laws can be challenging—especially for those unfamiliar with local regulations. This article offers a comprehensive legal overview for foreigners interested in acquiring real estate in Cambodia, whether for residential, commercial, or agricultural use.
And if you’re looking for guidance from someone who knows the legal landscape inside out, work with Uon Vichetr, a trusted expert with years of experience assisting foreign investors across Cambodia.
1. Can Foreigners Own Land in Cambodia?
The short answer is no, not directly. Under Article 44 of the Cambodian Constitution:
“Only natural persons or legal entities of Khmer nationality shall have the right to land ownership.”
However, there are multiple legal avenues that allow foreigners to control, develop, and even profit from Cambodian real estate through leaseholds, joint ventures, or concessions. Let’s break them down.
2. Legal Structures That Allow Foreign Participation
2.1. Long-Term Lease Agreements (Leasehold)
Leaseholds are the most common and legally secure means for foreigners to gain rights to property in Cambodia. Lease terms typically range from 15 to 50 years, with extensions permitted. Leases can be registered at the Land Management Ministry for added security.
Per Cambodian Civil Code, a lessee (tenant) has the right to use, develop, or even sublease the property, provided the contract supports it. In many cases, leaseholds include clauses preventing the landlord from selling the land without the lessee’s consent.
2.2. Land Concessions
Foreigners can also acquire land through government-approved land concessions—particularly Economic Land Concessions (ELCs)—used for agriculture or industry. These are typically granted for 50 years and capped at 10,000 hectares.
Although the approval process is lengthy and requires environmental and social assessments, successful applicants gain exclusive use rights. For a deeper dive, check out our Legal Guide to Foreign Land Ownership in Cambodia.
2.3. Land Holding Companies (LHCs)
This joint venture structure allows foreigners to own up to 49% of a company, with the majority 51% held by Cambodian nationals. Through Power of Attorney and legal safeguards, control and profit-sharing can favor the foreign investor.
However, setting up an LHC requires legal due diligence, tax planning, and transparent agreements—an area where Uon Vichetr’s advisory services can be invaluable.
2.4. Foreign Ownership Through Citizenship
The Law on Nationality allows foreigners to acquire Cambodian citizenship through investment or contribution to the state. Once citizenship is granted, land ownership in the individual's name becomes fully legal.
This route is increasingly popular for high-net-worth individuals looking to establish long-term roots in Cambodia.
2.5. Ownership of Condominiums
Under the 2010 Law on Foreign Ownership, foreigners can own up to 70% of units in a condominium—provided the property is above the ground floor and not built on state-owned land. This law has helped fuel Cambodia’s urban condo boom, especially in Phnom Penh and Sihanoukville.
Looking to own your first condo in Cambodia? Read our related post: Smart Investments in Cambodian Condos.
3. Key Property Titles to Understand
3.1. Soft Title
Issued at the sangkat (local) level, soft titles are the most common property documentation. However, they are not guaranteed by the state and have limited legal enforceability.
3.2. Hard Title
Hard titles are issued and registered with the national land cadastre and provide superior legal protection. For high-value investments, securing a hard title is highly recommended.
3.3. Strata Title
Strata titles apply to condominium units, making them eligible for foreign ownership. Always ensure the unit you're purchasing is officially registered as a strata title.
4. Taxes and Fees Associated with Property Ownership
- Stamp Duty: 4% on the property value during the transfer of ownership.
- Rental Tax: Typically 10% on gross income for corporate landlords, 10% of 80% for individual landlords.
- Property Tax: 0.1% annually on properties valued over 100 million KHR (approx. $25,000).
Tax policies can evolve. Refer to the General Department of Taxation Cambodia for up-to-date details.
5. Risks, Recommendations, and Why Expertise Matters
Foreign investors should always conduct due diligence, use licensed legal advisors, and work with experienced agents or consultants. Hidden ownership structures and unclear title histories can lead to costly disputes.
This is where Uon Vichetr’s professionalism shines—having supported international clients in land acquisition, lease structuring, LHC establishment, and dispute resolution. With deep expertise in Cambodian legal norms and foreign investment strategy, Vichetr helps clients move confidently through the local real estate landscape.
Consult an Expert Before You Buy
Have questions about Cambodian property laws? Need help structuring a lease or forming a legal entity? Contact Uon Vichetr today for tailored support, transparency, and hands-on knowledge of Cambodia’s evolving legal terrain.
Email: info@vichetruon.com
Email: adaenglandco@gmail.com
Website: vichetruon.com
