Property Rights in Cambodia

Can a foreigner own property in Cambodia?

In summary

A foreigner cannot hold freehold title to land in Cambodia: Article 44 of the Constitution reserves land ownership for Cambodian citizens and legal entities at least 51 percent owned by Cambodians. However, under the 2010 Condominium Law, a foreigner may acquire full ownership (freehold) of a condominium unit located on^{the first} floor or above, provided that no more than 70 percent of the units in a single building are reserved for foreigners.

When purchasing a villa, a leasehold is the most common option, with a land lease ranging from 15 to 50 years. The investor then has the right to use the property, with the option to either live in or rent out the villa.

Using a trust is a new option that has recently emerged as a solid alternative for purchasing a villa in Cambodia. A licensed trustee can hold the legal title to the land on behalf of the foreign investor, who retains the right to generate rental income, live in the property, and exercise effective control over it.

The final type of ownership structure: a local company with a majority of its capital held by Cambodian shareholders. In this type of arrangement, the investor owns a property and its land through a Cambodian company. This should be avoided if another option is available, as it is not very secure; the Cambodian majority shareholder then holds control over the company and the associated property or properties.

The Four Legal Options for Investing in Cambodia

Freehold in a condominium (“strata title”): recommended for an apartment

This is the most straightforward and secure option for purchasing an apartment and should be the default choice. Introduced by the 2010 Condominium Law (“Foreign Ownership Law”), it allows foreigners to become full owners of their unit with an individual title registered in their name with the Ministry of Land Management, Urban Planning, and Construction (MLMUPC), on the same footing as a Cambodian owner.

There are three conditions governing this right:

• The unit must be located on the first floor or higher (the ground floor is excluded)
• The building must be formally registered as a condominium with the MLMUPC
• The share of units owned by foreigners may not exceed 70 percent of the total number of units in the building.

In this regard, full ownership in Cambodia works similarly to Thailand, with a higher quota (see: Property Rights in Thailand).

In practice, you must verify that the developer has properly registered the building as a condominium before the sale, that the 70% threshold has not already been reached, and that the underlying land is covered by a hard title. This title is fully transferable: it can be resold, leased, or passed on through inheritance—including to non-resident heirs—making it the most liquid structure for a rental investor.

Long-term lease (leasehold): the most common option for a villa

For a house, villa, or residential lot, the most common option is still a registered lease (Leasehold), governed by the Land Law of 2001 and the Civil Code of 2007. The lease is generally entered into for 15 to 50 years—the maximum permitted term—with a renewal clause negotiated in advance.

Once registered with the land registry, it confers a real right enforceable against third parties, including the right to use, enjoy, and sublet or build in accordance with the terms of the contract.

The strength of a leasehold depends entirely on the quality of the lease agreement, and it is important to clearly specify the lease term, the renewal conditions, how the end of the lease will be handled, and the exit clauses. The main risk remains dependence on the property owner at the time of renewal; a well-drafted lease, with an automatic renewal option and prepaid rent, significantly mitigates this risk.

The trust: a recent and sound alternative, particularly for real estate

Since the Trusts Act of 2019, a trustee who is licensed and registered with the trust regulator may hold legal title to property on behalf of a foreign investor. This includes the acquisition of land, which a foreigner cannot do directly.

The investor retains the status of beneficial owner: use, rental income, and effective control through the trust deed. The structure involves three parties (settlor, trustee, beneficiary) and a strict separation between legal ownership and beneficial ownership. The trustee may neither sell nor mortgage the property without the consent of the settlor and the regulator, which protects the investor from the risk of misappropriation.

Based on a specific law rather than a loophole, the trust has emerged in recent years as a credible alternative to a local corporation for purchasing a villa with land, whether for personal use or to generate rental income.

However, there are a few things to keep in mind:

• Have the trust deed drafted by an independent attorney
• Plan for a tax system that is still somewhat unstable (transfer taxes, income taxes, and tax treatment in the event of withdrawal or inheritance).

A local company with a majority Cambodian ownership stake: best avoided

A foreign investor may establish a company under Cambodian law that holds up to 49% of the capital, with the remainder (at least 51%) held by Cambodian shareholders. This company is a Cambodian legal entity and may therefore acquire land in full ownership.

Historically, this has been the most common structure used by foreigners for real estate purchases of homes or land, but it is also the least secure. The company is entirely dependent on the loyalty of the majority Cambodian shareholder(s), who legally control the entity and could, in theory, sell or mortgage the land without the foreign investor’s consent.

The safeguards typically put in place (shareholder agreements, powers of attorney, cross-usufruct, and pledging of shares) remain contractual guarantees, which are less secure than a registered real right. This option is now discouraged whenever a more secure alternative (such as a trust or leasehold) can achieve the same objective.

Setting up a Cambodian company is only worthwhile if you actually know a trustworthy Cambodian (family, close friends), have a business plan, and are very familiar with the country and its laws.

Hard title, soft title: a distinction that should never be overlooked

Not all Cambodian property titles are created equal. The “hard title” (definitive title), issued by the national land registry, offers the greatest legal certainty: it is enforceable against all parties and transferable without ambiguity. The “soft title” (possessory title), which is more common outside major cities, is based on local recognition and carries a risk of boundary disputes. Before making any purchase, you should verify the nature of the title and, if possible, require that it be converted to a hard title.

Frequently Asked Questions About Property in Cambodia

Can a French citizen buy an apartment in Cambodia? Yes, provided that it is a condominium unit located above the ground floor in a building where foreign ownership does not exceed 70 percent.

Can foreigners own land in Cambodia? No, not directly. Full ownership of land is reserved for Cambodians and companies that are at least 51 percent owned by Cambodian nationals. However, a foreigner can secure a plot of land through a long-term lease or, more securely, through a trust.

What is the maximum term of a real estate lease in Cambodia? Cambodian law provides for leases of up to 50 years, which are renewable, allowing for very long-term use in practice.

Is a hard title required to invest safely? While it is not a legal requirement, it is strongly recommended: a hard title provides much greater legal certainty than a soft title, particularly in the event of a resale or inheritance.

What is a real estate trust, and is it better than a local corporation? Established by the 2019 law, the trust allows a licensed trustee to legally hold property—including land—on behalf of a foreign investor, who retains the use of the property and the income it generates. Backed by a dedicated legal framework, it is now a more reliable alternative than a local company, which exposes the investor to the risk of depending on a Cambodian majority shareholder.

In summary

Cambodia remains one of the most open real estate markets in Southeast Asia for foreign investors, with rental yields among the highest in the region, particularly in Phnom Penh and Siem Reap. However, this openness is subject to certain conditions, and the choice of structure depends primarily on the property in question: freehold condominium for an apartment, leasehold for a villa, and a trust as a recent and solid alternative for securing land—with a local company to be considered only as a last resort. Rigorous legal due diligence, conducted by independent professionals, remains the best protection for any investment project.

An investment project in Cambodia?

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This article is for informational purposes only and does not constitute personalized legal or tax advice. Osiris Investissements recommends consulting a Cambodian attorney and a tax advisor before making any purchase.