May 17, 2026Cambodia

Can Foreigners Own Property in Cambodia? The 2010 Foreign Ownership Law Explained

Cambodia's constitution (Article 44) reserves land ownership exclusively for Cambodian citizens. Foreigners cannot own land in any form. This is an absolute prohibition with no exceptions, waivers, or permit processes. No amount of investment, residency, or marriage to a Cambodian citizen grants a foreigner the right to hold a land title.

What foreigners can own is a condominium unit, specifically a strata-titled unit on the first floor or above of a co-owned building. This right was created by the 2010 Law on Providing Foreign Nationals with Ownership Rights in Private Units of Co-Owned Buildings, commonly called the Foreign Ownership Law. Everything about foreign property ownership in Cambodia flows from this single piece of legislation.

What the 2010 Law Actually Says

The law permits foreign nationals and foreign legal entities to acquire and own private units in co-owned buildings, subject to three conditions.

Above ground floor only. Foreigners can own units on the first floor and above. Ground floor units, underground units, and any unit with direct ground access are reserved for Cambodian ownership. The intent is to prevent foreigners from acquiring what amounts to land access through ground-floor ownership.

70 percent foreign ownership cap. No more than 70 percent of the total number of private units in a co-owned building can be foreign-owned. The remaining 30 percent must be owned by Cambodian nationals or entities. This cap applies to the building as a whole, not floor by floor.

Strata title requirement. The unit must be registered under Cambodia's strata title (co-ownership) system, which was formally established by the Civil Code that came into effect on December 21, 2011. The strata title separates ownership of individual units from ownership of the underlying land and common areas, which remain with the co-ownership association.

Understanding Cambodia's Title System

Cambodia has one of the most complex and historically troubled land title systems in Southeast Asia. The Khmer Rouge regime (1975-1979) destroyed nearly all land records, and the reconstruction of property rights has been ongoing for decades. Understanding the title hierarchy is essential.

Hard titles (private ownership certificates) are issued by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) and registered in the national cadastral database. This is the strongest form of ownership in Cambodia. Hard titles are issued through a systematic process of land survey and registration.

Soft titles are possessory rights recognized by the local commune (sangkat) authority. They are not registered in the national cadastral system and carry significantly less legal protection. Disputes over soft-titled land are common, and soft titles can be more easily challenged.

LMAP titles are hard titles issued through the Land Management and Administration Project, a World Bank-funded systematic land registration program. LMAP titles have been surveyed and registered using modern GPS technology and are considered the most reliable.

Strata titles are a subset of hard titles that apply to individual units within a co-owned building. For foreign buyers, this is the only title type that provides direct, legally recognized ownership.

What Foreigners Actually Get

When you buy a strata-titled condo in Cambodia, you receive a strata title certificate issued by the Cadastral Administration (part of the MLMUPC). This certificate states your name, the unit number, the building's registration, and your proportional share of the common areas.

You do not receive any ownership interest in the land beneath the building. The land is owned collectively by the co-ownership association, and your strata title gives you a proportional share of the common elements (lobbies, hallways, elevators, facilities) but not a separable interest in the ground.

Your ownership rights include the right to occupy, sell, lease, mortgage (through Cambodian banks), and bequeath the unit. Transfer tax on the sale of a strata-titled unit is 4 percent of the assessed value, paid by the buyer.

The Gap Between Law and Practice

Cambodia's property market has a significant gap between what the law says and how transactions actually work. Several practical issues affect foreign buyers.

Not all condos have strata titles. Some developers sell units with "ownership certificates" or "sale and purchase agreements" that are not registered strata titles. These documents may have limited or no legal enforceability. Before purchasing, verify that the building has been registered as a co-owned building with the MLMUPC and that individual strata titles have been (or will be) issued.

The 70 percent cap may already be reached. In popular buildings and developments, the foreign ownership quota may be fully allocated. If you are buying a resale unit, confirm that the 70 percent cap has not been exceeded. If it has, your purchase cannot be registered as foreign-owned.

Enforcement is inconsistent. While the law is clear, enforcement of the strata title system, building registration requirements, and the 70 percent cap varies. Some newer developments comply fully. Others operate in a grey area where the legal framework has not been fully implemented.

Taxes and Costs

Transfer tax: 4 percent of the assessed value (typically below market value), paid by the buyer at the time of transfer.

Annual property tax: 0.1 percent of the assessed value for properties valued above KHR 100 million (approximately USD 25,000). The threshold and rate are set by Prakas (ministerial decree) and may be adjusted.

Rental income tax: 14 percent withholding tax on gross rental income for non-resident foreigners.

Capital gains tax: Cambodia introduced a capital gains tax of 20 percent in 2020, though implementation and enforcement have been gradual. Check current enforcement status with a local tax advisor.

What Foreigners Cannot Do

Aside from the prohibition on land ownership, foreigners cannot own agricultural land in any form, own property in border zones or certain designated areas, hold more than 49 percent equity in a Cambodian company that owns land, or acquire land through a Cambodian spouse (the land will be titled solely in the Cambodian spouse's name).

For a comprehensive overview of Cambodia's property market, ownership structures, and alternative arrangements, Bektu's Cambodia country guide covers the current landscape.

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Can Foreigners Own Property in Cambodia? The 2010 Foreign Ownership Law Explained