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FOREIGNER: How To Buy Land in Cambodia? Are you foreign national planning to buy house in Cambodia? This blog post will help you. In this post, we have shared information about how a foreigner can invest in Cambodia property market. In terms of economy, Cambodia is one of the best countries. Do you know Cambodia has successfully passed three major recessions? The GDP of the country was high, even during recessions all over the world. As a foreigner, you can invest in Cambodia real estate market; however, there are certain restrictions. Before investing your money, make sure you are clear about those restrictions. You need to keep in mind certain things before buying land in Cambodia, as a foreigner: -After the passing of legislation in April 2010, the Cambodia foreign ownership property law allows foreigners to buy -A foreign national can have a maximum of 70% ownership of an apartment building. -A foreign national can buy property on the first floor or higher floors in Cambodia, not on the ground floor. -The land ownership title for foreigners in Cambodia is a strata title. Foreigners can’t get land ownership under hard, soft, or LMAP titles. These are some basic things you need to keep in mind before owning a property in Cambodia, as a foreigner. Taxes involved in owning a property in Cambodia Here are different types of taxes you will need to pay while owning a property in Cambodia: -Transfer tax: Transfer tax is charged 4% of the property value on all hard title property transfers. -Rental tax: The criteria for rental tax is different for Cambodian nationals and foreigners. It is 10% for Cambodian citizens and 14% for foreigners per annum on gross rent. -Property tax: It is 0.1% per annum. -VAT: VAT or Value Added Tax is applicable 10% on the sale of buildings. How to buy land in Cambodia? If you want to buy a land as a foreign national in Cambodia, you have four options. Here are those four options: 1. Buying land through a Cambodian company One of the best and safest options to buy property in Cambodia as a foreigner is through a Cambodian company. As a foreign citizen, you can’t own more than 49% of the company shares, hence it is very important to set up a company with the right person. 2. Taking control of land through a lease
If you don’t want to buy the property through any Cambodian company, you can take control of land in Cambodia through a lease. Foreign investors are allowed to use land with a lease period between 15 to 50 years. Before you enter into the lease agreement, it is advisable to check the land title. 3. By obtaining Cambodian citizenship Depending on your situation, this option may or may not suit you. The problem with this option is it is difficult and time-consuming. There are two ways you can qualify for Cambodian citizenship: either by residing in Cambodia for at least 7 years & showing the proficiency in Khmer house for rent in sihanoukville or making a big donation. The citizenship will be considered only after the President approves it. 4. Buying land through a nominee structure Buying land through a nominee is another common way used in Cambodia. In this method, you sign a trust agreement with a Cambodian citizen, through which he/she gives you the full right to control the land. Final Thoughts If your plan is to buy land in Cambodia as a foreigner, you have four options available. Dragon Real Estate is the real estate company based on Sihanoukville, Cambodia, which can help you find the right property. We can help you find condos, commercial properties, apartments in Cambodia. Keywords: -buy house in cambodia -cambodia property market -apartments in cambodia
