If you’re thinking about purchasing property in Cambodia and you are a foreigner, you might want to make sure you know the particulars about purchasing before you do so. While there are many stories of foreigners owning property in Cambodia, the government has the right to enforce the law at any time and the property could be seized. Knowing the proper procedures to follow will help you avoid this problem.
A real estate company in Cambodia can help you determine if you are eligible to purchase and what you may purchase.
Can Foreigners Own Property?
Foreigners can own property in Cambodia as long as they understand the restrictions. Foreigners can own properties on the first floor or higher of a building, but not the ground floor. They can own up to seventy percent of any building, but this only applies to a strata title. This type of title is a hard title that lets an owner divide a building into many individually sellable properties. This is also known as the condominium law, and is generally given to new condo buildings that are being built for a certain purpose.
In addition, foreigners can also own 49% of private property that does or does not have a structure on it if they are partnered with a Cambodian business. A Cambodian business is any legal entity that has 51% or more of the stocks held by residents of Cambodia. So long as you own the property with a Cambodian national, you can own any type of property you wish.
While this law is not fully being enforced, there is a level of risk if you do not follow the law.
Requirements of a Foreigner Owning Property in Cambodia
An investor or a property buyer in Cambodia has to have a current visa and passport to purchase a property. You should also have a real estate agent on hand to advise you on how to proceed with the process. It’s imperative that a title search is conducted before the property is purchased. The title search confirms who holds the title of the property and reveals any registered encumbrances or mortgages.
Benefits of Investing in Cambodian Real Estate
There are seven reasons why you may want to consider investing in Cambodian real estate. The first reason is political stability. Cambodia is enjoying a very stable environment for the time being, and it looks as if it will continue. Macroeconomic stability is another reason, along with low inflation rates.
Cambodia also has a low debt to gross domestic product rate, and there are investment incentives for foreigners to begin investing, making it an even lower cost to invest in the country while obtaining a nice return.
Another benefit is a young workforce, meaning there are more people who are more likely to rent a property from an investor and there is an up-and-coming economy. The last is a strategic location. Cambodia is located in the heart of the ASEAN region, making it an excellent place to invest.