15 Questions Every Foreign Investor Asks About Cambodia Real Estate — Answered

Property Hub Cambodia

From ownership rules to tax obligations to what "strata title" actually means — here are the questions we hear most from international buyers, with straight answers.

1. Can foreigners own property in Cambodia? Yes, with one key condition. Foreign nationals can own strata-titled condominium units with full legal title. You cannot own land directly, and you cannot own a ground-floor unit. Above ground floor, foreign ownership is permitted up to 70% of units per building. This is written into Cambodian law and applies to all nationalities.

2. What is a strata title? A strata title is the ownership certificate issued for individual condominium units. It is the only form of property ownership in Cambodia that a foreign national can hold in their own name. When we present a project, we confirm strata title status before anything else.

3. What is the difference between a hard title and a soft title? Hard titles are issued by Cambodia's Ministry of Land Management at the national level — they are the gold standard of property ownership and provide complete legal protection. Soft titles are issued by local district offices and represent roughly 70% of urban properties. They are legally recognised but offer weaker protection in disputes and cannot be used to secure a mortgage. For long-term investment, hard title is strongly preferred.

4. Can I own land through a company or trust? Some investors use a Cambodian-majority company or a land trust structure to hold land. These arrangements exist and are used, but they carry legal complexity and risk. For condominium investment — which is what we focus on — these structures are not necessary. Direct strata ownership is simpler, cleaner, and fully legal.

5. What happens if the developer goes bankrupt before completion? This is the core risk of off-plan investment in any market. In Cambodia, buyer protection in insolvency situations is limited compared to more regulated markets. This is why developer selection matters enormously. We only present projects from developers with a track record of completed, delivered buildings — not first-time developers or those with a history of delays.

Costs & Taxes

6. What taxes apply when buying? The primary cost is a 4% transfer tax on the property value, payable on purchase. There is also a 0.1% annual property tax on assessed value — typically modest in practice. VAT may apply on new developments from certain developers; always confirm before signing.

7. Is there capital gains tax in Cambodia? Yes, from January 2026 onwards. Capital gains tax is set at 20% on net profit from property sales. This was introduced after years of being informally deferred. It is a relevant factor for investors with short-to-medium hold periods, and it shifts the calculus toward longer holds where rental income can offset the tax drag on exit.

8. What are the ongoing costs of ownership? Expect building management fees averaging $1 per square metre per month, utility connection fees, and the 0.1% annual property tax. In managed buildings with facilities (pool, gym, security), management fees may be higher. A realistic all-in ownership cost for a 50m² unit in a premium building is approximately $600–$800 per year in base fees, excluding utilities.

9. Can I repatriate rental income and sale proceeds? Yes. Cambodia imposes no restrictions on transferring rental income or capital proceeds offshore. USD is freely used and the local currency (KHR) is not required. This is a meaningful advantage over some regional markets where capital controls complicate repatriation.

Returns & Market

10. What rental yields can I realistically expect? Gross yields of 6–8% are achievable in well-located, well-managed buildings in prime Phnom Penh districts. Net yield after management fees and vacancy typically runs 4.5–6%. Some developers offer guaranteed rental return programmes for 2–3 years post-completion. Always read the guarantee terms carefully — the developer's financial strength backs the guarantee.

11. How does Phnom Penh compare to Bangkok or Ho Chi Minh City on price? Average condo prices in Phnom Penh run approximately $2,500 per square metre in prime areas. Bangkok sits around $10,000/m², HCMC around $5,900/m². The gap is real and reflects Cambodia's position as an earlier-stage market — which is where the yield opportunity lies, but also where the due diligence requirement is higher.

12. Is the Cambodian property market stable? Cambodia's economy has grown at 6–7% annually for most of the past decade. The 2019–2022 period saw a correction, particularly in Sihanoukville. Phnom Penh's prime residential market has been more resilient, underpinned by genuine occupier demand from expats and a growing local professional class.

Practical

13. Do I need to be in Cambodia to buy? No. Many of our buyers complete purchases remotely. The process involves a signed reservation agreement, legal due diligence (which we coordinate), and a Sales and Purchase Agreement. Power of attorney can be used for buyers who cannot travel. We manage the process end to end.

14. How long does the purchase process take? For off-plan purchases, the reservation-to-SPA timeline is typically 20–30 days. Title transfer for completed properties with hard titles takes 4–6 weeks at the Ministry of Land Management. The process is straightforward for strata-titled condominiums.

15. Do I need a lawyer? For a strata-titled condominium purchase from a reputable developer, the transaction is relatively standardised. Many buyers complete without a separate lawyer. For complex structures, land purchases, or significant capital deployment, independent legal review is advisable. We can refer you to trusted local legal counsel if needed.

Have a question not covered here? Our team speaks English, Japanese, Khmer, and several European languages. Reach us directly. We respond within 24 hours.