Depending on the type of property, foreigners may purchase it in Cambodia. The law prohibits foreigners from purchasing land in Cambodia. According to Article 44 of the Cambodian Constitution, “Only Khmer legal entities and citizens of Khmer nationality shall have the right to own land.” However, there are a few ways for foreigners to buy land. If you want to participate in the market, it is advised that you get in touch with our knowledgeable agents at CAMRealty. These procedures might be difficult, especially for those who are new to the real estate market.
There are several ways for foreigners to buy land in Cambodia:
1) Investing with a Cambodian national in a land holding firm
The least dangerous and most well-liked strategy is this one among foreigners. When a foreigner owns up to 49% of a firm’s shares and a Khmer citizen has the majority (51% of shares), the company will be recognized as a legal entity. According to Chapter VI, Article 16 of the Cambodian Investment Law, “51% of the equity capital are directly owned by natural persons or legal entities holding Cambodian citizenship.”
A foreigner can establish up this corporation and use it to buy real estate. This method’s biggest drawback is a lack of confidence in your Khmer opponent. It’s essential that you pick a companion you can trust when employing this strategy. By doing this, even though the foreigner is a minority shareholder, they can still buy real estate. However, investing in a firm comes with plenty of challenges and costs, so this might not be an appropriate choice.
2) Making use of a leasehold contract
Land can be leased by foreigners for 15 to 50 years, with an additional 50 years of renewal rights. Long-term leases let the foreign party to continue to possess all relevant rights to the property, including those relating to its development and construction.
– Make a sizable donation/investment that aids in the development of Cambodia as a nation.
– Reside in Cambodia for a minimum of seven years and exhibit complete competence in the Khmer language.
4) Buying property using the nominee structure
Although it has been a common choice for foreigners, this one is not secure. In the nominee structure, a foreigner and a Cambodian citizen enter into a trust arrangement in which the Cambodian citizen hands the foreigner full ownership over the purchased land. The paperwork prepared will show that the foreigner is in charge of the property. Despite being extremely simple and inexpensive to implement, the nominee structure is strongly discouraged because it is illegal and directly violates the Khmer Constitution, which forbids direct foreign ownership.
In addition to buying property, foreigners are permitted to acquire homes under the strata land title. The require for a foreigner to buy property in Cambodia only passport and visa are needed.