Cambodia (KH)

Affordable Southeast Asian base with easy daily life, a large Phnom Penh and Siem Reap expat scene, strong NGO/tourism/education networks, fast digital payments, and visa rules that are flexible but increasingly document-driven.

Capital: Phnom Penh

Region: Asia

Language: Khmer

Currency: KHR (KHR)

Cost of living: Very affordable (index 35)

Emergency: 119

Buying Property in Cambodia

The full buying process, transaction costs, mortgage, and legal requirements.

Foreigners cannot own land in Cambodia — the 2001 Land Law and the Constitution explicitly prohibit foreign land ownership. However, foreigners can legally own strata-title condominium units above the ground floor, subject to a 70% foreign-ownership cap per building and a 30 km border exclusion zone. Homeownership among Cambodian nationals is relatively high (estimated 80%+), but the formal market for foreigners is almost entirely limited to condominiums and long-term leases. Due diligence on title quality, developer credibility, foreign quota, and fiscal obligations is critical before any purchase.

Rent vs. Buy

Most expats should rent first. Phnom Penh and Siem Reap condo markets have seen significant oversupply in some segments since 2020, with post-COVID recovery uneven. USD-denominated prices make Cambodia an accessible entry point, but liquidity on exit is unpredictable. Buying is best suited to long-term residents or investors who fully understand hard vs soft vs strata title, the 70% foreign quota, developer risk, capital gains tax (effective 2026), and import-export restrictions on rental income. The 4% transfer tax and CGT make short-term ownership expensive.

Buying Process — Step by Step

Confirm foreign ownership eligibility

Before any deposit

Verify that the property is a properly registered co-owned building with a valid strata title (not just marketed as a condo). Confirm the unit is above the ground floor. Verify that the building has not yet reached the 70% foreign-ownership cap. Check that the property is not within 30 km of a land border.

Engage an independent Cambodian lawyer

1–2 weeks

Hire a licensed Cambodian law firm to check the strata certificate, cadastral records, encumbrances, developer's rights to sell, any outstanding debts, and the sale and purchase agreement. Do not rely on the developer's in-house team. Budget USD 500–2,500+ for this service.

Title and developer due diligence

1–3 weeks

Lawyer verifies hard title/LMAP/strata title at the Ministry of Land Management (MLMUPC) cadastral office. For new builds, review construction permits, developer financial stability, and escrow/trust arrangements. For resales, confirm the seller's identity on the title extract.

Reservation and sale and purchase agreement

1–2 weeks

Negotiate price, payment schedule (off-plan or immediate), handover date, snagging obligations, service charge structure, penalties for delay, and which party pays the 4% transfer tax. Both parties sign the agreement, and a reservation deposit (typically 10–30%) is paid.

Pay transfer tax and complete title registration

8–16 weeks

Pay the 4% stamp duty on the official assessed value to the General Department of Taxation (tax.gov.kh). The strata title transfer is processed at the MLMUPC cadastral office. Completion typically takes around 12 weeks from submission of all documents.

Handover, utilities, and ongoing tax setup

1–4 weeks

Conduct a final inspection and snag list. Take meter readings, transfer building access cards, and register with the building management for service charges. If renting the unit out, register for rental income tax. Set up annual property tax reminders (due by 30 September each year).

Transaction Costs

Cost Item	Amount	Notes
Transfer tax (stamp duty)	4% of official assessed value	The assessed (cadastral) value is set by tax authorities and may differ from transaction price. Paid by buyer to the General Department of Taxation at time of transfer.
Annual property tax	0.1% of assessed value/year	Applies to properties with assessed value above KHR 100 million (~USD 25,000). Due by 30 September each year.
Capital gains tax (CGT)	20% of the taxable gain	Effective 1 January 2026. Applies to gains on sale of real estate. Confirm taxable base with a tax adviser before selling.
Legal fees (due diligence and contract)	USD 500–2,500+	Independent legal counsel is non-negotiable. Higher for complex developer or off-plan deals.
Agent commission	Often included in the seller or developer price	New-build commissions can be embedded in the advertised price. Clarify before agreeing to an agent representing both parties.
Rental income tax (if letting)	10% for residents; 14% for non-residents (withholding on gross rent)	Must be filed with the General Department of Taxation. Non-residents pay the higher 14% rate.
Unused land tax	2% of assessed value/year	Applies to vacant/unused land. Enforced from 1 January 2025. A 5-hectare per-plot tax-free allowance applies. Relevant mainly to land investors, not condo buyers.
Total transaction cost estimate	Approximately 5–7% of purchase price	Budget 4% transfer tax + 1–3% legal, agent, and miscellaneous costs on top of the agreed price.

The Notary — Mandatory for All Purchases

Cambodia does not use a civil-law notary system for property transfers. Transactions are formalised through lawyers, the MLMUPC cadastral office, and the General Department of Taxation. Lawyers draft and witness the sale and purchase agreement. The cadastral office processes the title transfer. For foreign buyers, an independent licensed Cambodian law firm is the critical professional — not a notary.

Mortgage

Mortgages for foreigners exist in Cambodia but are limited, document-heavy, and priced higher than mature markets. Rates range from approximately 8–12% per annum (USD) depending on the lender, property type, and borrower profile. Most foreign purchases are completed in cash or via developer instalment plans. All major banks require a local bank account and extensive KYC documentation.

Typical Deposit Required

30–50% of the purchase price is typical for foreign buyers accessing local bank financing. Cash purchases and developer finance (often 20–30% down) are more common.

For Foreign Buyers

Foreigners cannot own land and can only mortgage strata-title condo units above the ground floor. Nominee land structures (registering land in a Cambodian national's name) are risky and legally unenforceable — courts have ruled against foreign buyers in disputes. Long-term leases (up to 50 years, renewable) are a legal alternative for non-strata properties.

Recommended Lenders & Brokers

ABA Bank — most popular bank among expats, offers home loans for foreignersACLEDA Bank — one of Cambodia's largest lenders, starting from ~8% p.a.BRED Bank Cambodia (subsidiary of BRED Banque Populaire France) — international-standard home loans from ~8.5% p.a.Developer instalment financing — common for off-plan new builds

Land Registry

Land title is administered by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) at mlmupc.gov.kh. Title quality ranges from soft title (village-chief letter — least secure) to hard title (full cadastral registration) to LMAP title (GPS-mapped hard title — most secure) to strata title (for co-owned buildings — the correct route for foreign condo ownership). Foreign buyers must target strata-title properties only. The MLMUPC has been rolling out digital land information services from 2024, with further improvements planned through 2029.

Taxes

Transfer tax (stamp duty): 4% of the officially assessed value, paid at the time of transfer to the General Department of Taxation. Annual property tax: 0.1% of assessed value per year for properties above KHR 100 million (~USD 25,000), due by 30 September. Capital gains tax: 20% of taxable gain on real estate sales, effective from 1 January 2026. Rental income tax: 10% (residents) or 14% (non-residents) withheld on gross rental income. Unused land tax: 2% per annum on vacant land (enforced from January 2025). Home-country tax may also apply to foreign owners — seek advice in your country of residence.

New Build vs. Existing Property

Off-plan purchases can offer lower entry prices and instalment payment plans but carry completion risk, developer-insolvency risk, and strata-title-registration risk. Always verify that the strata title framework exists and is properly registered before paying any deposit on a new build. Existing strata-title units reveal real service-charge levels, building management quality, flooding, noise, and occupancy rates.

Selling Property

Resale liquidity varies significantly by location, title quality, developer reputation, and remaining foreign quota in the building. Budget for 4% transfer tax (typically paid by buyer but negotiable), CGT at 20% of gain (from 2026), agent fees, and legal costs on the seller side. Allow time — Cambodia's secondary condo market can be slow to clear, particularly outside Phnom Penh.

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