Buying property in Cambodia—especially in Phnom Penh and Siem Reap—requires careful planning, due diligence, and a clear understanding of local laws and market conditions. Here's a concise guide based on expert insights:(InvestAsian)
🏠 Legal Ownership: What Foreigners Can and Can’t Do
-
Condominiums (strata title): Foreigners can legally own condos above the ground floor, provided the building is registered with a strata title.(InvestAsian)
-
Land and landed property: Foreigners cannot directly own land. Alternatives include:
-
Landholding company (LHC): Establishing a Cambodian company with majority local ownership.
-
Trust structures: Legal trusts managed by licensed trustees.
-
Nominee arrangements: Riskier and less secure.(Reddit, InvestAsian)
-
Note: Trusts and LHCs are more secure but come with setup and maintenance costs. (InvestAsian)
📍 Phnom Penh: Where to Look
-
BKK (Boeng Keng Kang): Popular among expats; central location.
-
Daun Penh: Historic district with colonial architecture.
-
Chamkarmon: Upscale area with embassies and high-end residences.
-
Chbar Ampov & Chroy Changvar: Emerging neighborhoods with infrastructure developments.
Be cautious of oversupply in the condo market; some projects remain incomplete. (Wandering Investor)
🏯 Siem Reap: A Lifestyle Investment
-
Tourism-driven market: Proximity to Angkor Wat attracts visitors.
-
Height restrictions: Preserve the city's skyline; limits on building heights.
-
Investment profile: Better suited for long-term capital appreciation than rental yields.(Wandering Investor)
Ideal for lifestyle buyers or those seeking diversification. (Wandering Investor)
🧾 Titles & Documentation
-
Hard title: Registered at the national level; offers the highest security.
-
Soft title: Registered at the local level; more common but less secure.
-
Strata title: Specific to condominiums; allows foreign ownership.
Always verify the title type and ensure proper registration.
💰 Taxes & Fees
-
Transfer tax: 4% of the property's value.
-
Annual property tax: 0.1% on properties valued over 100 million riel (~$25,000).
-
Rental income tax: 10% for residents; 14% for non-residents.(InvestAsian)
Be aware of potential additional costs, such as legal fees and agent commissions. (InvestAsian)
✅ Practical Tips
-
Due diligence: Hire a reputable lawyer to verify property titles and check for encumbrances.
-
Local agents: Engage with experienced real estate agents familiar with the local market.
-
On-the-ground research: Visit properties personally; some deals are found through local networks rather than online listings.
-
Language barrier: Consider hiring a translator or working with bilingual professionals to navigate negotiations and paperwork.
Investing in Cambodian real estate offers opportunities but comes with complexities. Thorough research and professional guidance are essential to navigate the market effectively.(InvestAsian)
