Buying Property and Land in Cambodia Through a Company

Buying property in Cambodia through a company is generally permitted, but a company's right to own land or only certain types of property is determined by whether it is classified as Cambodian or foreign under Cambodian law.

Choosing the right ownership structure is therefore essential, as it affects the types of property a company can acquire, the legal requirements it must satisfy, and the taxes and compliance obligations that apply.

This article covers:

• Are corporations allowed to own property in Cambodia?
• Is there property tax in Cambodia?
• How much does an average house cost in Cambodia?
• Can you own land in Cambodia as a company?
• Is withholding tax mandatory when purchasing land as a company?
• How to purchase land in Cambodia?

Key Takeaways

• Cambodian companies may generally own both property and land if they satisfy the applicable ownership requirements.
• Foreign companies generally cannot own land directly and typically invest through eligible condominiums, long-term leases, or other permitted structures.
• Buying through a company in Cambodia is often better suited to commercial, rental, and property development investments than owner-occupied homes.
• Companies should complete thorough legal and tax due diligence before purchasing property in Cambodia.

My contact details are hello@adamfayed.com and WhatsApp ‪+44-7393-450-837 if you have any questions.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

What is the real property law in Cambodia?

Cambodia's real property laws establish the legal framework for owning, transferring, and registering real estate, including land and certain types of buildings.

The country's real estate market is primarily governed by the Constitution of Cambodia, the Land Law 2001, and the Law on Providing Foreign Ownership Rights in Private Units of Co-Owned Buildings.

Together, these laws regulate matters such as property ownership rights, land registration, title transfers, and the legal treatment of different types of real estate.

They also distinguish between ownership of land and ownership of buildings or condominium units, with different legal rules applying depending on the type of property involved.

Cambodia also recognizes several forms of land title, including:

• Hard title
• Soft title
• LMAP title (registered title)

Hard titles generally provide the highest level of legal certainty because they are registered within the national cadastral system.

LMAP titles are also registered through the national land administration system, while soft titles are typically recorded at the local administrative level.

Buyers should ensure comprehensive legal due diligence is completed before purchasing land, a condominium, or other real estate, regardless of the type of title involved.

Can you buy property in Cambodia as a company?

Yes. Companies can generally purchase property in Cambodia, although the extent of their ownership rights is based on whether the company is considered Cambodian or foreign under Cambodian law.

A Cambodian-incorporated company that satisfies the country's ownership requirements may generally acquire both land and buildings.

Companies commonly purchase Cambodian property for:

• Commercial premises
• Hotels and resorts
• Industrial facilities
• Warehouses
• Residential investment projects
• Mixed-use developments

Before purchasing property, companies should verify the property's legal title, ownership history, zoning status, and any mortgages, easements, or other encumbrances.

Should you buy property through a company or personally?

Buying property through a company in Cambodia may be more appropriate for commercial investments, while personal ownership is often simpler for an individual purchasing an eligible residential property.

A company structure may be suitable where the property will be:

• rented to tenants
• developed for sale or lease
• used for business operations
• held by multiple investors
• acquired as part of a long-term investment portfolio

Using a company may also offer advantages for managing commercial assets, bringing in additional investors, and separating business liabilities from personal assets.

However, companies are generally subject to greater incorporation costs, ongoing accounting and tax compliance, and corporate reporting obligations than individual owners.

For a single condominium unit or other eligible residential property intended primarily for personal use, buying personally may often be the simpler option.

How to buy property in Cambodia through a company

Purchasing property in Cambodia through a company requires complying with the country's corporate, tax, and property laws before ownership transfer can be registered with the Cambodian Cadastral Administration.

The exact process depends on the type of property, the company's structure, and the applicable legal requirements.

1. Verify the property title and conduct legal due diligence through the relevant cadastral records.
2. Sign the sale and purchase agreement in the company’s name.
3. Pay the applicable transfer tax, registration fees, and other taxes.
4. Register the ownership transfer with the Municipal or Provincial Land Office under the Ministry of Land Management, Urban Planning and Construction.
5. Update the company’s corporate and tax records and maintain ongoing compliance.

Additional restrictions may apply to land ownership under Cambodian law.

What are the requirements to buy property through a company in Cambodia?

Companies buying Cambodian property generally need to provide corporate registration documents, tax registration, proof of authority to purchase, and the legal documents required to complete the property transfer.

Common requirements include:

• Certificate of company incorporation
• Company constitution or articles of association
• Tax registration certificate
• Identification of directors and shareholders
• Corporate resolution authorizing the purchase
• Proof of funding
• Property due diligence
• Sale and purchase agreement
• Property registration documentation

Foreign companies may also need to provide legalized or apostilled corporate documents together with certified translations where required.

Using experienced Cambodian legal counsel is generally advisable to ensure compliance with registration, tax, and property transfer requirements.

How much does property cost in Cambodia?

House prices in Cambodia generally start at around US$1,500–2,200 per square meter for entry-level condominiums in Phnom Penh, while higher-end developments often range from US$1,900–3,500+ per square meter.

Approximate prices include:

Prices vary considerably based on the city, location, property type, and development quality.

Land values also differ substantially between central Phnom Penh, secondary cities, coastal provinces, and rural areas, with prime commercial districts commanding significantly higher prices than emerging areas.

Companies considering property acquisitions should evaluate not only the purchase price but also expected rental yields, operating costs, taxes, financing, and long-term capital appreciation.

What is the property tax in Cambodia?

Companies purchasing property in Cambodia may be liable for transfer tax, annual property tax, corporate income tax on rental income, capital gains tax where applicable, and VAT on certain transactions.

• Transfer tax (4%) – Generally payable upon the transfer of ownership of immovable property and typically borne by the buyer.
• Annual property tax (0.1%) – Levied on qualifying immovable property at 0.1% of the taxable value above the exemption threshold.
• Corporate income tax (up to 20%) – Rental income earned through a company is generally subject to Cambodia's corporate income tax rules.
• Capital gains tax – Capital gains tax on the sale or transfer of immovable property has been postponed until 1 January 2027. Companies should monitor future changes, as the tax is scheduled to apply once the deferral ends.
• Value-added tax (VAT) (10%) – Certain commercial property transactions and supplies may be subject to Cambodia's standard 10% VAT.

The exact tax treatment varies based on the company's tax status, the type of property, whether the property generates rental income, and whether the transaction qualifies for any available exemptions.

Because Cambodia's tax rules continue to evolve, companies should obtain professional tax advice before completing significant real estate investments.

Can a company own land in Cambodia?

Cambodian companies may generally own land, while foreign companies are generally prohibited from directly owning land.

Under the law, a Cambodian company typically requires at least 51% Cambodian ownership, with the remaining shares permitted to be held by foreign investors, subject to compliance with Cambodian law.

Foreign investors instead commonly use alternatives such as:

• Long-term land leases – Cambodian law generally permits long-term leases of up to 50 years, with the possibility of renewal in certain circumstances. This is one of the most common ways for foreign companies to secure long-term control of land without obtaining ownership.
• Joint ventures – Foreign companies may partner with Cambodian investors through a jointly owned business. Depending on the ownership structure and compliance with Cambodian law, the joint venture may be able to acquire land for business purposes.
• Eligible Cambodian corporate structures – A company that qualifies as Cambodian under the applicable ownership requirements may generally own land. Foreign investors should obtain legal advice before establishing such a structure to ensure it complies with Cambodian corporate and land ownership laws.
• Ownership of qualifying condominium units – Although foreign companies generally cannot own land, they may purchase eligible condominium units in co-owned buildings where foreign ownership is legally permitted. This allows companies to invest in Cambodian real estate without acquiring the underlying land.
• Development agreements – Instead of purchasing land outright, foreign companies may enter into agreements with Cambodian landowners to develop residential, commercial, or industrial projects. These arrangements should clearly define each party's ownership rights, responsibilities, and profit-sharing arrangements.

Each option carries different legal, tax, financing, and commercial implications.

How much agricultural land can a corporation own?

There is generally no single statutory maximum amount of agricultural land that every corporation may own, but ownership is based on the company's legal status, the intended land use, and compliance with Cambodian land laws.

Cambodian companies that satisfy ownership requirements may acquire agricultural land subject to applicable regulations.

Foreign companies generally cannot directly own agricultural land but may participate through legally permitted investment structures, long-term leases, or approved business arrangements.

Large-scale agricultural investments may also require additional regulatory approvals depending on the nature and scale of the project.

Is purchase of land subject to withholding tax in Cambodia?

No. Land acquisition in Cambodia is generally not subject to withholding tax merely because ownership is transferred.

Buyers are instead more commonly liable for transfer tax and other transaction-related taxes associated with the acquisition.

Withholding tax may apply to certain payments connected with property transactions, such as rental payments or payments made to certain non-residents under Cambodia's tax rules.

Companies should distinguish between transfer taxes, income taxes, and withholding taxes when evaluating the total cost of acquiring Cambodian real estate.

What to consider before buying land in Cambodia as a company?

Businesses buying land in Cambodia should evaluate their legal eligibility, the property's title, regulatory restrictions, and potential legal risks before proceeding with a purchase.

Key considerations include:

• Company eligibility: Confirm whether the company's ownership structure permits it to acquire land under Cambodian law.
• Land title: Verify whether the property has a hard title, soft title, or LMAP title, and ensure ownership records are accurate.
• Ownership verification: Confirm the registered owner and check for mortgages, liens, easements, or other encumbrances affecting the property.
• Zoning and land use: Review zoning regulations, land-use restrictions, and any development requirements that may affect the property's intended use.
• Boundary verification: Ensure the property's boundaries match the official cadastral records to help avoid future disputes.
• Taxes and transaction costs: Understand the transfer tax, registration fees, and any other taxes or charges that may apply to the acquisition.
• Legal due diligence: Engage a qualified Cambodian lawyer to review the transaction documents, verify compliance with applicable laws, and identify any legal risks before completing the purchase.

Conducting thorough due diligence can help reduce the risk of ownership disputes and regulatory issues.

Is it better to use a foreign company or a Cambodian company?

For purchasing both land and property, a Cambodian company generally provides greater ownership rights than a foreign company.

A Cambodian company may be more suitable for long-term land ownership, local business operations, and property development.

A foreign company may remain appropriate where the investment focuses on eligible condominiums, commercial leasing arrangements, or regional investment structures without requiring direct land ownership.

Conclusion

Cambodia continues to attract property investors because of its growing economy and relatively accessible real estate market, but the legal structure used to acquire property is just as important as the property itself.

Establishing the right ownership framework before signing a purchase agreement can help avoid costly restructuring, compliance issues, or investment limitations later.

Careful planning at the outset is often one of the most valuable parts of a successful property investment.

FAQs

Can expat individuals buy property in Cambodia?

Yes, foreigners may generally purchase eligible strata-title condominium units above the ground floor, subject to the 70% foreign ownership limit in a co-owned building.

They are generally prohibited from directly owning land and typically invest through long-term leases or other legally permitted ownership structures.

What percentage is allowed for foreign investment in Cambodia?

Cambodia generally permits up to 100% foreign ownership in many business sectors, although land ownership remains subject to separate legal restrictions.

Certain regulated industries may also impose additional ownership requirements.

What is the long term lease in Cambodia?

A long-term lease is a legal arrangement that allows a person or company to use land for an extended period without owning it.

In Cambodia, long-term leases may generally last up to 50 years and can often be renewed by agreement, making them a common alternative for foreign investors.

Can foreigners own freehold property in Cambodia?

Yes, but only in limited circumstances.

Foreigners may generally own freehold condominium units located above the ground floor of eligible co-owned buildings, while direct ownership of land remains generally prohibited.

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