Can foreigners buy Real Estate in Cambodia?
Yes can, on August 2009 Draft Law on foreign ownership of properties has unveiled. In an effort to stimulate the flagging real estate industry and encourage overseas investment, the government unveiled its long-awaited draft law on foreign ownership of private units in co-owned buildings.
And the limited conditions of this law are any private units owned by foreigners must be on the first gofloor or above. This is to prevent foreigners owning Cambodian soil. Foreigners will not be allowed to own ground-floor property, the sub-soil of a property, or any common (shared) areas in co-owned buildings such as gardens, stairways, access points and maintenance areas.
A further more the regulation states that the total foreign ownership of private units within a building cannot exceed 70%. For example, in an apartment block of 100 units, only 70 units could be sold to foreigners.
And for security reasons, the law does not apply to property within 30km of Cambodiaâ€™s national land borders, with the exception of Special Economic Zones or important urban areas.
There are basically 5 Options for buying properties in Cambodia.
Option 1: Forming a Company with a Cambodian Citizen
Forming a limited company in sharing the partnership with any Cambodian citizen. To purchased properties for investment is then registered in the name of the company. The company must have a minimum 51% Cambodian shareholding.
Option 2: Getting Honorary Cambodian Citizenship
A foreign national would get a honorary Cambodian citizenship if he or she donates a significant sum amount of money to the government of Cambodia for the purposes of benefiting to the people in Cambodia. Anyone who has granted honorary Cambodian citizenship they are possible to acquire a 100% right of ownership over property purchased in Cambodia.
Option 3: Buy Property with a Cambodian Citizen’s Name
Any foreigner can purchase property and register the purchased property in the name of the Cambodian citizen. And when the Title Deed is transferred to the Cambodian citizen, the foreigner should keep the new Title Deed. To do so, is for a security reason that protects the foreignerâ€™s interests by preventing the Cambodian citizen selling the property without informing the owner because they can not sell the properties without the Title Deed.
Option 4: Long term Rental
Foreigners purchase a property and register the Title Deed with the name of a Cambodian citizen. Then the foreigner and the Cambodian enter into a long-term rental agreement by which the Cambodian citizen leases out the property back to the foreigner. Lease periods can last up to 99 years.
Option 5: Getting Married to a Cambodian National
Any foreign national who getting married to a Cambodian national can register property using the name of their wife/husband on the Title Deed.