Can a foreigner own real estate in Cambodia

Yes, but with clearly defined conditions. Under the Constitution, land in Cambodia belongs only to citizens of the country. However, the 2010 Law on Co-ownership granted foreigners the right of full ownership (freehold) of apartments in multi-unit buildings — and that is the Strata Title.

Strata Title — the only clean freehold for a foreigner

A Strata Title is a document of ownership of an individual apartment in a condominium, registered in the national cadastre. The main conditions under the 2010 law:

  • Only from the second floor and above — the basement and ground floors are not available to a foreigner for ownership
  • The limit on foreign ownership in a single building is no more than 70% of the area of private units
  • A ban on ownership in buildings within 30 km of land borders (the exception being SEZs and declared urban zones)
  • The transfer of rights is invalid without registration in the national cadastre
  • Inheritance is permitted

A Strata Title is full, perpetual ownership without a local partner, without a trust, without a company. The bulk of apartments in Phnom Penh's new condos are sold precisely with this document.

Hard Title and Soft Title — what's the difference

Hard Title — a right registered at the national level in the cadastre of the Ministry of Land Management (MLMUPC). The highest legal force: it is recognized by courts and banks and protects against disputes over double sales. It is precisely a Hard Title that an apartment must have when registering a Strata Title.

Soft Title — ownership recognized only at the commune (sangkat) level, without entry into the national cadastre. Historically widespread on the market, but legally weaker. For a foreigner, a Soft Title is a red flag: such a transaction is easier to contest, banks do not lend against it, and registration in the cadastre cannot be completed with it.

The purchase tax — 4%

When registering a Strata Title, the buyer pays a real estate transfer tax (Stamp Duty) of 4% of the property's value. The relief for new builds from licensed developers:

  • A property worth up to $70,000 — 0% tax (full exemption)
  • A property worth $70,000–210,000 — $70,000 is deducted from the base, and the 4% tax applies only to the amount above this threshold

Additionally: legal support for the registration (collection of documents) — about $1,500–1,800. If you plan to assign before the property is completed, there is no need to register a Strata Title — the new buyer will do it themselves, and you save on the tax.

Steps when buying

  • Step 1: The purchase agreement (SPA) is signed at the first payment. Your rights to the property are recorded in it already.
  • Step 2: Payment on schedule (installments or as a lump sum).
  • Step 3: After 100% payment — registration of the Strata Title through the cadastre, with payment of the 4% tax.

Typical risks

  • Buying from an unregistered developer — make sure the property is licensed
  • Exceeding the 70% limit on foreign owners in a specific building — check before buying
  • A property on a Soft Title — demand a Hard Title
  • The absence of cadastre registration — without it, the right does not legally arise