In principle, foreigners are not allowed to own the land regardless of individual or incorporated. However, for foreign incorporated or individual investor who land acquisition is strategically necessary for, they sometimes acquire the lands with some specific protections such as legally binding contract and etc.
It is forewarned for foreigners to own buildings because there are some restrictions for foreigners. In 24 May 2010, "Law on providing foreigners with ownership rights in private units of co-owned buildings" has been proclaimed and executed which has allowed foreigners to purchase the properties only on the first floor and up which meet the conditions of condominium under the law.
LAND FOR SALE
Land ownership rights are given only to Cambodian nationals and it is not allowed for foreigners. In other words, more than 51% of the ownership needs to be held by Cambodian nations regardless of individual or incorporated. We provide the following three examples for foreigners to own the land based on this principle.
<< Land Acquisition Method by Foreigners >>
1. Acquisition of Cambodian nationality: It is possible to purchase the Cambodian nationality and purchase the land. However, it requires both time and money. Moreover, dual nationalities are not allowed for some nationalities such as Japan, Korea and etc…
2. Nominee of Cambodian nation: In many cases, we choose the option to register the land under Cambodian nominee name. In the case nominee dies or misses, or breakdown of the relations of trust, the problem may happen.
3. Set up a land holding company: 51% is owned by Cambodian individual or incorporated and 49% is owned by foreign individual or incorporated. It is possible for foreign investors to control it by specific protective measures to be done.
For further information, please feel free to inquire us through here.
CONDOMINIUMS FOR SALE
Foreigners' Co-ownership Law of Cambodia allows foreigners to own the sectional ownership only in the housing complex meeting the following conditions.
<< Required Conditions to housing complex with ownership right >>
1. The buildings shall be with sectional ownership.
2. The properties shall locate on the 1st floor or higher. Cf) Ground, 1st, 2nd, 3rd and …
3. The share of foreigners on the building on total exclusive area basis shall be less than 70%.
4. Condominium association shall be set up as well as rules and regulations.
About "Decision of condominium association"
There are two types of matters: One is the matter decidable by acquiring more than 50 percent of the voting power. The other one is the matter decidable by acquiring more than 75 percent of the voting power.
In the meanwhile, some people may think to purchase a section of Cambodian flat (row house) however foreigners are allowed to buy only limited to the properties meeting the above-mentioned conditions.
There are some second-hand condominiums showing up to the market gradually in late years in addition to new condominiums. However, there are some condominiums on the status of the legally incomplete and the impossible to get it registered at ministry level which were mostly sold before the development of laws or tightening of regulations so that we must take extra care of those properties. Those properties potentially may bring you conflict and also to the court
About ROI; return of investment
Cambodia is not exception but we can expect high CAPITAL GAIN as well as Southeast Asia’s condominium that people generally expect high return as the capital gain, on the other hand, in advance countries such as Japan and USA, we can expect high INCOME GAIN more than CAPITAL GAIN. However, there is always the same degree of the risks behind the merit so that we must make sure of the risks in advance before our purchasing. Furthermore, the supplies of condominiums are dramatically being increased and those are being sold on pre-build basis so that we strongly recommend you to choose it very carefully.
For further details, please feel free to give us inquiry through here.
THE OTHER TYPES OF PROPERTY FOR SALE
If you are looking for any whole building for sale such as serviced apartment and office, or business and building for sale such as hotel and shops, the other properties for sale, you can contact us through here.