+855 12 900 208
Your search results

Tips for Buying Property in Cambodia

Posted by devphnompenh on May 21, 2025
Buying Properties, Location, Real Estate
0 Comments

Tips for Buying Property in Cambodia: A Smart Investor’s Guide

Cambodia’s real estate market has become a magnet for savvy investors, expats, and locals seeking affordable opportunities in a rapidly developing economy. With its booming tourism sector, increasing foreign direct investment, and urban expansion—especially in Phnom Penh, Siem Reap, and Sihanoukville—buying property in Cambodia can be highly rewarding. However, the process isn’t always straightforward. To help you avoid common pitfalls and make smart decisions, here are key tips for buying property in Cambodia.

1. Understand the Legal Landscape

Foreigners cannot directly own land in Cambodia. This restriction is rooted in the country’s Constitution, which reserves land ownership strictly for Cambodian citizens. However, foreign nationals can legally own:

  • Condominium units (strata titles) above the ground floor.

  • Long-term leases (15 to 50 years, renewable).

  • Properties through Cambodian nominees or land-holding companies—though these structures carry legal risk and require expert advice.

➡ Tip: Stick to strata-title condos or long-term leases unless you fully understand the risks of nominee structures.

2. Work With a Reputable Real Estate Agent

Cambodia’s real estate industry is still developing, and not all agents are licensed or reliable. A professional real estate agent with local expertise can:

  • Help you find legally sound properties.

  • Assist with negotiations and paperwork.

  • Connect you with lawyers and notaries.

➡ Tip: Choose agents who are transparent about fees, offer written agreements, and are familiar with foreign buyer concerns.

3. Verify Ownership and Legal Documents

Before buying, ensure that the property has a hard title or strata title:

  • Hard Title: The most secure and government-recognized form of ownership.

  • Soft Title: Recognized locally but not registered at the national level, which can be riskier.

  • Strata Title: Ideal for condos, fully recognized by the Ministry of Land Management.

➡ Tip: Always conduct a title search and verify the seller’s ownership rights through the relevant land office.

4. Hire an Independent Lawyer

Even if you trust your agent or seller, you should hire an independent Cambodian lawyer experienced in real estate law. Your lawyer will:

  • Review and draft contracts.

  • Ensure compliance with local regulations.

  • Handle due diligence to protect your investment.

➡ Tip: Make sure the lawyer is not affiliated with the seller or developer.

5. Consider Location and Infrastructure

Whether buying to live, rent, or invest, location is critical. Ask yourself:

  • Is the property near key amenities like schools, hospitals, or markets?

  • Is the infrastructure (roads, electricity, water supply) reliable?

  • What is the potential for capital appreciation?

➡ Tip: Phnom Penh offers high rental yields; Siem Reap is ideal for tourism-related investment; Sihanoukville offers opportunities but requires caution due to rapid development.

6. Understand Tax Implications

Property buyers in Cambodia must be aware of applicable taxes:

  • Transfer tax: 4% of the property’s assessed value.

  • Rental income tax: 10% for individuals.

  • Capital gains tax: Currently 20% on profit when selling.

➡ Tip: Consult a tax advisor to optimize your property’s financial performance and stay compliant.

7. Inspect the Property Thoroughly

Whether buying a condo off-plan or a resale villa, always perform a physical inspection:

  • Look for signs of structural damage or poor construction.

  • Confirm that utilities and infrastructure are in place.

  • Speak to neighbors or other residents if possible.

➡ Tip: If buying off-plan, verify the developer’s reputation and history of completed projects.

8. Secure Financing (If Needed)

Most Cambodian banks offer mortgages only to Cambodian nationals or joint ventures with a Cambodian spouse or partner. Foreign buyers usually need to:

  • Pay in cash.

  • Use offshore financing.

  • Partner with a trusted Cambodian co-borrower.

➡ Tip: Some international banks with a presence in Cambodia may provide more flexible solutions—explore all options early in the process.

9. Don’t Skip the Sales and Purchase Agreement (SPA)

A well-written Sales and Purchase Agreement outlines all terms of the deal, including:

  • Payment schedule.

  • Delivery timeline (for off-plan).

  • Penalties for default.

  • Clauses for dispute resolution.

➡ Tip: Never make large payments without a signed SPA and legal backing.

10. Stay Informed and Patient

Cambodia’s property market is dynamic, and legal reforms are ongoing. Regulations can change, and due diligence is key to avoiding costly mistakes.

➡ Tip: Follow news from the Ministry of Land Management or trusted real estate platforms to stay updated.

Final Thoughts

Buying property in Cambodia can be a profitable and fulfilling venture, but success depends on preparation, legal awareness, and choosing the right partners. Whether you’re investing in a Phnom Penh condo, a Siem Reap guesthouse, or beachfront property in Kep, take the time to understand the market, protect your rights, and invest wisely.

Compare Listings