How to Buy Property in Cambodia? Checklist for 2025

Legal aspects. What a foreigner needs to know

Ownership restrictions. Cambodian law prohibits foreigners from directly owning land (Art. 44 of the Constitution and the 2001 Land Law). This means that non-residents cannot register a plot of land or a house on land under freehold ownership in their own name. However, since 2010, foreign citizens have been allowed to acquire full ownership of apartments in condominiums (multi-storey residential complexes) – provided that the property is located above the first (ground) floor. Such properties are registered through a strata title, which grants full ownership rights to the apartment. In one residential building, foreigners may collectively own up to 70% of all housing units (the remaining 30% must belong to Cambodian citizens). There is also a direct ban on owning the first floor of a building, as it has contact with the land.

Today, Cambodia is a stable market that offers the opportunity to both preserve and grow capital through real estate. Many projects offer guaranteed rental yields, and the growth of the city and economy supports long-term price appreciation.

Villas and private houses. If you want to buy a seaside villa or a private house (that is, a property standing on its own land plot), direct land purchase in your own name is not possible. However, in practice, there are indirect ways for foreigners to own property in Cambodia:

• Long-term lease (leasehold). The law allows long-term lease agreements for land or houses for a period from 15 to 50 years, with the right to extend for another 50 years. Such a lease must be registered with the state and may include the right to construct buildings on the plot. Essentially, long-term leasing gives a foreigner control over the property without direct land ownership.
• Through a local company. A foreigner can register a Land Holding Company in Cambodia, with at least 51% of the shares owned by a Cambodian citizen. Such a company has the right to acquire land and any properties, while the foreigner effectively controls the assets through their shareholding in the company.
• Nominee ownership. The most risky option is to register the property in the name of a trusted local resident by agreement. The foreigner and the Cambodian citizen sign a private agreement stating that the actual owner is the foreigner, although the legal title is in the Cambodian’s name.
• Obtaining citizenship. Finally, a radical path is to obtain Cambodian citizenship, after which the new citizen is no longer subject to land ownership restrictions. The law provides for the possibility of naturalization for special merits or investments. In practice, there is a Citizenship by Investment program: accelerated passport acquisition through investment – with a direct non-refundable contribution of $330,000 to the economy, one can become a citizen in just 6 months. However, this is quite an expensive way to solve the land ownership issue. A more affordable option is the long-term residence permit program (covered below).

Property titles (Hard and Soft Title). In Cambodia, there are several types of property rights registration: the so-called Hard Title (state title) and Soft Title (local registration). A Hard Title is an official certificate issued by the Ministry of Land Management, Urban Planning and Construction (MLMUPC), recorded in the central registry, and provides maximum legal protection. A Soft Title is issued by the local sangkat (commune) authorities and is not always backed by a centralized record. For a foreign buyer, it is preferable to purchase a property with a Hard Title or, in the case of an apartment, with a strata title registered at the national level. When buying property through a company or lease, it is also necessary to aim for a Hard Title for the company or registration of the long-term lease in the state registry. As part of transaction preparation, title due diligence is mandatory: through the cadastral office, you must verify the authenticity of documents and ensure there are no encumbrances (mortgages, arrests, disputes) on the property.

A Hard Title is an official certificate issued by the Ministry of Land Management, Urban Planning and Construction (MLMUPC), recorded in the central registry, and provides maximum legal protection.

Step-by-step guide to buying property in Cambodia (2025)

Step 1. Market research and property selection

Start by defining your goals and budget. Decide what type of property in Cambodia you need – a condominium apartment, serviced apartments, a townhouse, or a villa. Keep in mind that for a foreigner, buying a condominium in Cambodia is the easiest: new residential complexes in Phnom Penh, Sihanoukville, or Siem Reap offer a wide selection of apartments. A villa or house can only be acquired indirectly (through a company or lease), so if you specifically want a standalone house on land, plan time and budget for additional legal structuring.
Location choice. The Cambodian real estate market is not homogeneous, and it is important to choose a location that matches your goals – whether for investment (capital growth, rental income) or personal residence. Let’s look at the main areas:

Phnom Penh – the capital and largest city of Cambodia. This is where most business activity, expats, and government institutions are concentrated. Demand for urban housing in Phnom Penh is growing, especially from the young middle class and foreign professionals. Most new condominiums and residential complexes are being built in the capital. Apartment prices in Phnom Penh have risen over the past decade but remain moderate by regional standards. Investment property in Phnom Penh is attractive due to stable rental demand from expats, embassies, and international companies – you can expect rental yields of around 4–8% per year. When choosing a district, note that central areas (Daun Penh, BKK1, etc.) are more expensive, while suburbs are developing rapidly and offer more affordable prices with good growth potential.

Sihanoukville – a major port city on the coast. Known for its resorts and casinos, in recent years it has attracted significant foreign investment (especially from China). Skyscrapers, hotels, and condominiums are being built here. However, Sihanoukville’s market is volatile: boom periods have alternated with downturns. Buying a seaside apartment can bring high short-term rental income from tourists, but it is important to carefully choose the developer – check the company’s reputation and permits. Also, note that the city’s infrastructure is less developed than in the capital, and resale may take longer.

Siem Reap – a tourist center near the Angkor Wat temple complex. The city attracts foreigners mainly as a place for tourism-related businesses or peaceful living. The housing market here is smaller. Nevertheless, there are some condominiums and residences for foreigners. Rental yields in Siem Reap will depend on tourism recovery. If your goal is relocation for living in Cambodia, Siem Reap may appeal with its slower pace of life and cultural environment.

Other regions. Coastal provinces Kep and Kampot are also considered promising – they are known for their nature and are developing as resort areas, although infrastructure is still emerging. Foreigners buy land there for guesthouses or villas, usually through long-term leases. Such investments are more speculative. For a first-time property purchase in Cambodia, it’s better to focus on the three main markets: Phnom Penh, Sihanoukville, Siem Reap – where the rules are clearer and professional realtors are available.
Once you’ve decided on the city and type of housing, study price trends. Pay attention to projects with foreign involvement – many condominiums are funded by international companies and meet good construction quality standards.

Step 2. Budget and financing, document preparation

Budget planning. When calculating your investment amount, take into account not only the property price but also related expenses: 4% transaction tax, registration fees, lawyer’s fees, agent’s commission (if buying on the secondary market), and money transfer costs. Also set aside a reserve for repairs or furnishing if you plan to rent out the property. Later in the article, we will detail the main taxes and fees when buying property. In 2025, there are tax benefits, such as no stamp duty (4%) on the first $210,000 of a property’s value – this can help save money if you are buying a budget or mid-range property.

Installments or mortgage. If you do not have enough cash for a one-time payment, consider two financing options: a mortgage from a local bank or an installment plan from the developer. Foreign citizens can obtain a mortgage in Cambodia, but such programs are limited. Typically, banks (e.g., ABA Bank, ACLEDA, etc.) require that the foreign borrower have a local residence permit or employment in Cambodia, proof of income, and sometimes a Cambodian co-borrower. Loan terms for foreigners are conservative: down payment of 20–50%, interest rate of ~7–10% per year, term up to 20–25 years. Be prepared to provide a complete set of documents – passport, visa or residence permit, income statements, reference letters. Without a long-term visa or residence permit, the bank will most likely refuse to grant a loan.

An alternative is an installment plan from the developer. Many developers in Cambodia are interested in foreign buyers and offer flexible payment schemes. This usually applies to purchases during the construction stage: you pay an initial payment (e.g., 30%) and the rest in installments according to a schedule until construction is completed. Sometimes installments are also offered for ready properties – for a term of 1–3 years. Advantages: no need to go through bank bureaucracy, often no proof of income required. Disadvantages: the price of the property with an installment plan may be higher, or interest may be built into the schedule (usually higher than bank rates). Carefully read the developer’s contract for penalties for late payments and hidden fees.

Preliminary documents. Prepare your documents well in advance before searching for a specific apartment. Your passport should be valid for at least one year. Make several notarized copies and translations into Khmer or English – they will be needed for the transaction. If you plan to buy through your own company, prepare its registration documents, charter, and decision to purchase. You may need to open a bank account in Cambodia for payment – check with your chosen bank for the list of required documents (passport, visas, proof of address).

consultation

Step 3. Property search and legal due diligence

At this stage, you actively review listings and conduct due diligence on each property. It is recommended to enlist the support of a licensed realtor in Cambodia – investhaven.co’s partner team includes such specialists. Online platforms will help you find options that meet your request. Be sure to personally inspect the apartments or houses you like, assess the surrounding infrastructure, construction quality, and the degree of project completion. If buying at the construction stage, pay extra attention to the developer’s reputation: find out how many projects they have completed, whether there were delays, and whether they have all the necessary ministry permits for the project.

Title and property check. Once you have chosen a specific property, you need to carry out thorough legal due diligence:

• Title documents: request a copy of the ownership certificate (Hard Title or strata title) from the seller. Verify the owner’s name, area, and cadastral number. Through our partner lawyer or on your own, submit a request to the local land office (cadastre) to confirm the authenticity of the title. At the same time, find out if there are any registered encumbrances (mortgages, liens) or legal disputes on the plot or apartment. If the title is a Soft Title, be cautious – it is better to require the seller to convert it to a Hard Title before the transaction, otherwise you risk third-party claims.
• Transaction structure: determine how you will register the ownership right. If it’s a condominium, the optimal way is in your own name with a strata title.
• Permits and legal compliance: for new builds, check if the developer has a license for the project, a construction permit, and whether permission has been obtained to sell strata titles to foreigners. The condominium must be officially registered as a co-owned building with a strata title license, otherwise foreigners will not be able to register apartments in their own name. When checking secondary housing, request a certificate confirming payment of Property Tax for previous years – there should be no arrears.

At this stage, a qualified lawyer fluent in English and Khmer should already be involved. They will help gather and verify documents. The lawyer will also prepare a draft sale and purchase agreement in two languages (English and Khmer) that protects your interests. Pay attention to the following:

• Payment terms (payment schedule, in Cambodia transactions are often in US dollars),
• Liability of the parties for non-fulfillment of obligations (late payment penalties, construction quality guarantees, key handover dates),
• Allocation of transaction costs (usually the 4% tax is paid by the buyer, the agent’s commission by the seller, but variations are possible),
• Termination terms. Refund of the deposit if the transaction fails due to the seller’s fault, etc.

Step 4. Transaction execution: contract and settlement

When legal checks are complete and you are confident in the safety of the purchase, proceed to closing the deal. Usually, the procedure is as follows:

1. Preliminary agreement and deposit. With the seller (or developer), sign an Agreement to Sell/Buy or Deposit Agreement. It sets out the main terms: property, price, deadline for full execution, and deposit amount (usually 5–10%). The deposit is typically paid in cash in US dollars or by bank transfer to the seller’s Cambodian account. This payment confirms the seriousness of your intentions and reserves the property for you.
2. Main sale and purchase agreement. On the agreed date, the buyer and seller sign the Sales and Purchase Agreement (SPA) – the main bilingual contract. Signing takes place in the presence of a notary or official title registrar if required by the procedure. You must have your original passports with you. The contract is drawn up in English and Khmer, with the Khmer text having legal force, so it is crucial that your lawyer checks the translation. After signing, the buyer pays the remaining amount to the seller according to the terms (either the full amount or the first major tranche if deferred payment is agreed). Payments are usually made by bank transfer.
3. Taxes and fees upon transfer of rights. At the same time as signing, you must pay the state property transfer tax – 4% of the assessed value. The tax is usually calculated from the contract price or cadastral value (whichever is higher). In 2025 (until December 31, 2025), this tax is temporarily waived for part of the value: the state has exempted the first $210,000 of the property price from stamp duty. However, there is one condition – the property must be purchased from a registered construction company (i.e., an official developer). For secondary market transactions, you will likely have to pay the full tax. In addition to stamp duty, there is a stamping fee ($100–$200) for document processing. Legal and translation fees are usually paid by the buyer (lawyer’s fee ~$1,000–2,000).
4. Property registration. After full payment and signing the sale deed, the document package is submitted to the state authority for registration. For condominiums, this is the Ministry of Land Management, Urban Planning and Construction (MLMUPC) – it registers the transfer of the strata title to the new owner. You must submit: the notarized agreement, the original title certificate from the seller, your application and passport, and receipts for the 4% tax payment. Your data is then entered into the registry, and you receive an updated Hard Title/strata certificate with your name as the owner.

Step 5. After purchase: ownership, taxes, capitalization

Congratulations – you are now a property owner in Cambodia! But the process does not end here. It is important to correctly complete the post-transaction steps:

• Residence permit (if needed). If you plan to live in Cambodia permanently or visit frequently, ensure you have legal status. The fact of buying property does not automatically grant a residence permit or citizenship, but it serves as a good basis for long-term stays. Below we will look in detail at the Cambodia My 2nd Home program (residence by investment) and other options.
• Property taxes. Cambodia has relatively low annual property taxes. For properties valued above 100 million riels (~$25,000), an annual property tax is levied at a rate of 0.1% of the assessed value. For example, if an apartment is valued at $100,000, the annual tax will be around $100. Many low-cost apartments (under $25,000) are completely exempt from this tax. Make sure you pay this fee annually (usually through the tax department or a bank) – non-payment may result in fines.
• Insurance. Consider property insurance – some international insurers offer policies for houses and apartments in Cambodia covering risks such as fire, flooding, and theft. This is especially relevant if you plan to rent out the property or do not live there permanently.
• Management and rental. Average rental yields in Cambodia are about 4–8% per year in USD, depending on the type and location of the property. We will be happy to recommend our partner in Cambodia – a management company that, for a commission of about 8–10% of rental payments, will handle tenant search, contracts, payment collection, and property maintenance. This saves you a lot of hassle and helps keep the property in good condition, increasing its value.
• Resale and capital growth. If you plan to sell the property in the future to lock in profits, monitor the market situation. The Cambodian market is cyclical: periods of rapid price growth may be followed by stagnation. For example, before the 2020 pandemic, condominium prices in Phnom Penh grew rapidly, then declined. In 2024, the market revived, and the government is encouraging sales with tax incentives. Keep in mind that tax conditions may change by the time of sale. As of 2025, a formal capital gains tax of 20% on property sale profits is in place, but its implementation has been postponed several times and deferred until the end of 2025. This means that if you sell before December 31, 2025, no tax will be charged on the profit.

Overall, Cambodia’s tax policy is favorable for investors: low annual rates and incentives attract capital to the real estate market.

Taxes and expenses when buying property

The financial side is a key factor affecting the final return on investment. Let’s look in more detail at the tax rates and mandatory payments when buying and owning property in Cambodia (as of 2025):

• Transfer Tax – 4% of the property’s value. This is the main purchase tax, paid once at the time of registration. As noted earlier, until the end of 2025 there is an exemption on the first $210,000 of a property’s value.
• Stamp Duty – a fixed fee of $100–200 for document processing and issuing new certificates.
• Property Tax – an annual tax of 0.1% of the assessed value if it exceeds 100 million riels ($25,000). Paid once a year, usually at the end of the year.
• Capital Gains Tax – 20% on the profit from a sale, which was to apply to individual transactions. However, the government has postponed its introduction several times to support the market. At present, applying CGT to property sales is deferred until 31.12.2025. Rules for 2026 are not yet known.
• Agent commissions and legal fees. While not taxes, they should be considered. Legal services in Cambodia cost around $1,000–2,000 for transaction support. Realtor commission is usually 3% (on the secondary market, paid by the seller from the proceeds). When buying directly from a developer, you can often avoid commissions entirely – the agent’s fee is already included in the price by the developer. Document translation and notary services cost another $200–500. In total, transaction costs (excluding the 4% tax) amount to about 1–3% of the property price – very low by global standards.

Overall, Cambodia’s tax policy is favorable for investors: low annual rates and incentives attract capital to the real estate market. However, always keep track of legislative updates – the government may change conditions (for example, expanding the capital gains tax base or extending/canceling exemptions) depending on the economic situation.

Conclusions

Buying property in Cambodia in 2025 is a completely feasible and transparent process if you follow the right steps. From the outset, a foreigner should understand the legal framework: buying an apartment in Cambodia directly is easy (via a strata title), but purchasing land or a villa requires special mechanisms (lease, local company, or investment for citizenship). This checklist has shown each step in detail – from document preparation and region selection to property title registration. By following it, you will reduce risks and avoid common mistakes.

Cambodia attracts international investors with a combination of affordable prices, high rental yields, and a growing market. The government is supporting the sector in 2025: introducing tax holidays (zero transfer tax until the end of 2025) and special visas for investors. This means that the entry threshold for foreigners is now lower than ever – you can buy modern housing in Phnom Penh or by the sea in Sihanoukville relatively cheaply and also obtain a long-term residence visa.

Of course, as in any country, there are challenges: you need to carefully check titles and keep up with legal changes. Pay special attention to the developer’s reputation when buying at the construction stage and to compliance with the foreign ownership limit (70% in a building).

Today, Cambodia is a stable market that offers the opportunity to both preserve and grow capital through real estate. Many projects offer guaranteed rental yields, and the growth of the city and economy supports long-term price appreciation. By investing here, you not only gain potential profits but also a second home in a rapidly developing country. By following our guide’s recommendations, you can confidently go from idea to holding your coveted ownership certificate – and enjoy all the benefits of owning property in Cambodia.

Prepared by the specialists at InvestHaven. All materials on immigration and real estate investment on the website and blog at www.InvestHaven.co are intended solely for informational purposes and are not a direct action guide, nor financial, legal, or investment advice. For relocation planning (including obtaining permanent residency, residence permits, or citizenship) and real estate investments, please contact the InvestHaven team’s specialists.

FAQ. Answers to key questions