Cambodia Property Investment Guide

Below is a general procedure of buying a Cambodia/Phnom Penh Property as a non-resident.

1. Reserve Unit

First, select the property and unit type. Then, a reservation fee is payable in US Dollar which is non-refundable to hold the unit.

2. Contract Exchange

We as a property agent will explain all important notes to the buyers. Next, the developer will then send the contract to your agent. Your agent will ask the buyer to sign the Sales & Purchase Agreement in Hong Kong.

3. Pay First Instalment

After signing the Sales & Purchase Agreement, 10%-25% of the purchase price is payable by the buyer to the developer.

4. Handover and Settlement

When the property is about to be completed, the developer will notify the buyer to settle the remaining balance. Once the buyer settled the balance, the developer will turn the key to the buyer. At the same time, the buyer has to bring passport and bank transfer certificate/cheque to the land hall to apply for the transfer registration of the ownership.

5. Move in  / Rent Out the Property in Cambodia

When the foreign buyer has got the key, you can assign a letting management company in Cambodia to manage your property. They can provide services such as tenant recruitment, checking and maintaining the property, paying taxes for the owner etc.

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Q: Can foreigners buy and own Cambodia properties?
A: Yes. Cambodia's government has passed a law in April 2010 to allow foreigners to buy and own properties in Cambodia. However, foreigners could only buy and own Cambodia properties on the 1st floor or higher and only a maximum of 70% on a single apartment building.

Q: What is a hard title? What is a soft title?
A: There are two types of title in Cambodia. One is hard title and the other one is soft title. A hard title is registered through a national governement's land registry, but a soft title is registered through a local government. Both titles would give the buyer a proof of the ownership of your property. The developer would also give the buyer a strata title to prove their ownership.

Q: Can foreigners apply for mortgage in Cambodia?
A: Yes, but the interest rate for foreign buyers is high in Cambodia, so most of the foreign buyers would opt for cash buy.

Q: What kind of currency is used to buy Cambodia property?
A: US Dollar is the only currency used in Cambodia.

Cambodia Property Tax

Transfer Tax : 4% of property value (pay upon handover)
Property Tax : 0.1% of the property value per annum (value determined by Immovable Property Assessment Committee)
VAT : 10% VAT (Some developers would bare this tax for the buyer)

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