Real estate investment in Cambodia for citizenship is an intelligent move for individuals seeking a second passport. However, investing in property in any foreign land is prohibited unless it’s not channelized through the proper legal framework. Investment in Cambodia property is no different and restricted to some extent. However, the launch of My Second Home (CM2H) in July 2022 is an entrance door to acquiring a ten-year validity period golden visa with a minimum investment of $100,000 in the property.
Cambodia offers investment programs for citizenship, but there is no online source to share the process’s clear structure and requirements. The reason could be the influence of the royal government, as you may also need a direct connection to the Cambodian King for citizenship. Fortunately, you have IPS Cambodia, your real estate investment advisor in Cambodia, to help you with understanding.
This guide will share complete information on investing in Cambodian real estate for citizenship. Here you will get the best-known process as well as the benefits and risks associated with different investment options. By the end of this read, you can make informed decisions and successfully navigate the investment options for obtaining Cambodian citizenship.
Investment Options For Cambodia Citizenship
Becoming a citizen of Cambodia naturally takes seven years of your stay in any city in Cambodia. The tenure can be minimised to three years if you are married to a Cambodian. Both scenarios will need to demonstrate command in speaking and writing in Khmer and clear a local history test.
The other route we are interested in is obtaining Cambodian citizenship through investment. Through this process, you will not only own land and property under your name but also become eligible to apply for government concessions and licenses exclusively available to citizens.
Residency Investment programme-My Second Home (CM2H)
This investment program is not to be missed opportunity to gain Cambodian citizenship in 2023. The recently launched program allows only 10000 applicants to apply for the golden visa with a minimum investment of $100,000 into real estate projects approved by the Cambodian government and GC Property. The salient features of this program include:
- Invest in getting a renewable visa with a ten-year validity period.
- Only after five years of residency it is possible to apply for a Cambodian passport.
- Only 10000 visas are only offered.
- CM2H beneficiaries will not be required to achieve certain proficiency in the Khmer language or present academic qualifications.
Why to Apply:
- 10-year membership in Khmer Home Charity Association (KHCA)
- Free professional assistance on Company Registration, Opening Bank (ABA) Account, Cambodian Driver’s License, Opening Trust Account
- 1 Shophouse/Shoplot Investment Asset (GC Oruseey market)
- 1-year (free) Medical Insurance with VIP Medical Treatments
- Cambodia International Airport (free) VIP Access
How to Apply:
- Submit the application to the Ministry of the Interior (MOI).
- The required investment application must include details of the project and the amount invested and get it approved by Cambodia Development Council or Royal Government.
- The applicant will receive their Khmer citizenship within 3 to 6 months.
Business Investment from the Cambodian Development Council (CDC)
Obtaining Cambodian citizenship is much required if you travel back and forth for your business work or have plans to set up a business in Cambodia. Cambodia demands ($320,000) 13 billion KHR business investment for citizenship. If you are willing to invest in any commercial projects or own the complete business along with the land, then this is your best investment plan. The main outlines for this investment program include
- Getting a letter of authorization for investment from the Cambodian Development Council (CDC), or
- Obtain legal authorization for investment from the govt.
- The invested amount may differ depending on the sector and location of the investment project.
- There are various administrative fees associated with the investment approval process,
- Investing in agriculture, tourism, infrastructure, and manufacturing may provide additional benefits, such as tax exemptions and investment incentives.
- Also, register their business with the Ministry of Commerce in Cambodia.
Why to Apply
- Entitlement or indirect ownership of agricultural land and ground-floor properties throughout the nation.
- Legal right to purchase, own and sell land and real estate in Cambodia.
- Additional opportunities because of rising property values and rental yields
Total Time to Process the Citizenship Application
- The process of obtaining citizenship through business investment in Cambodia usually takes 3-4 months.
- Once all the requirements are met, the applicant is granted permission to travel to Cambodia to obtain citizenship and a passport.
- To be eligible for the citizenship application, the investor must possess a valid guest visa or be authorized to enter Cambodia without a visa.
- The applicant is required to take an oath of loyalty before receiving the passport.
- Dual nationality is accepted by Cambodia as well.
Is it Worth Getting Cambodia Citizenship Through Investment Programs?
Becoming a Cambodian citizen through property investment provides legal protections, economic incentives, and the opportunity to own land and real estate in the country. However, purchasing property in Cambodia comes with its own set of risks and challenges. We suggest our readers thoroughly research and understand the local laws and regulations before investing. You can also contact our representative to assist you with this.
Benefits Of Cambodia Citizenship
- Chances for reaping financial benefits because of the rapidly growing economy and the increasing demand for housing and commercial space.
- The country’s location also makes it attractive for businesses and investors.
- Purchasing property in Cambodia can be a lucrative investment opportunity for those with Cambodian citizenship.
Disadvantage of Cambodia Citizenship through Real estate Investment
- Lack of a comprehensive land registry system can make verifying ownership difficult, and potential disputes may arise.
- Potential for corrupt practices and to work with not-so-trusted professionals in the industry.
- Some areas may be more prone to flooding, or other natural disasters hence need to be careful while investing.
Becoming a Cambodian citizen through different investment programs is an opportunity to get the legal right to purchase, own, and sell land and other real estate properties in Cambodia, which can result in financial growth and security due to the country’s rapidly growing economy and rising property values.
Frequently Asked Questions
Q. Is there any legal requirements for obtaining Cambodian citizenship through property investment?
Yes, some important legal requirements must be met to obtain Cambodian citizenship through property investment.
- Applicants need to be at least 18 years old.
- Migration applicants should not have any criminal record.
- Speak Khmer or have a translator present during applying.
Q. Is there any additional associated fees while acquiring citizenship in Cambodia through investment?
There are additional admin costs that can amount to an additional $100k+:
- Deposit of US$5,000;
- Also need to pay US$25,000 as processing fees.
- On approval, you also need to submit US$40,000
- US$15,000 after the passport is available for pickup.
Q. In what types of properties can I invest to gain citizenship in Cambodia?
You can invest in government-approved real estate development projects, including agricultural lands, Ground floors, highways, bridges, or airports.
Q. Will I have any tax benefit on real estate selling after getting Cambodian citizenship?
As a Cambodian citizen, you may be subject to certain tax benefits on real estate selling. For example, if you hold the property in Cambodia for a certain period of time before selling it, you may be eligible for a reduced capital gains tax rate.
Q. How can I calculate property value in Cambodia, and what factors affect property values?
To calculate the value of a property in Cambodia, you should analyze factors such as recent sales data, property condition, location, and market trends to arrive at a fair and accurate estimate of the property’s value.
Q. What are the rental yields and potential return on investment for properties in Cambodia?
Rental yields for properties in Cambodia can range from 5% to 10%, with higher rental yields in the district of Phnom Penh or near tourist destinations.
Q. What is the current state of Cambodia’s economy and real estate market, and what are the growth prospects for the future?
Cambodia’s economy is projected to rebound and grow by 3% to 5% in 2021, according to the Asian Development Bank.