Cambodia has become one of the favorite tourist spots for many travelers over the years. The ease of getting the visa, low cost of living, the amazing weather, and welcoming locals are what make it a go-to spot for backpackers. The land is filled with great opportunities particularly for foreigners. If you are planning to move to Cambodia, owning property there has to be your first step. The process might be simple but will require a little more attention than choosing composite decking colours. Here is everything that you need to keep under consideration while buying an apartment in Cambodia:
Can a Foreigner Own Property in Cambodia?
This is easily one of the most frequently asked questions. Foreigners can surely own property in Cambodia but there are few restrictions. For instance, they cannot own property on the ground floor but can buy an apartment on the first or any other floor. Make sure to know about this rule before you head to purchasing a home.
Foreigners cannot own land in Cambodia according to article 44 of the constitution. However, there are four ways for foreigners to own property in Cambodia:
- A foreigner can get property from a Cambodian nominee. This method is both illegal and unsafe but it is being used very often.
- One can acquire citizenship to get the right to buy the property.
- Land can be purchased through a local company.
- It can be bought on lease.
What do you need as a foreigner to own property in Cambodia?
All you need is your passport and Cambodian visa to own a property in Cambodia. However, it will be recommended for you to get legal assistance like a lawyer or a real estate agency during the purchasing process to avoid any inconveniences and make sure that the seller owns the property that he is selling and there aren’t any other claims on the property.
What is meant by Hard and Soft Property Title?
Here’s a simple and straightforward explanation of property titles in Cambodia:
This one is the preferred land title in Cambodia and the strongest one. Hard titles are ownership certificates that are provided by National Land Management and Planning Office. It contains detailed information about the property and is duly recognized and certified on a national level through the Ministry of Land Management and Urban Planning and Construction. A four percent transfer tax is applied on these hard transactions.
Soft titles are the most common form of property ownership in Cambodia and are recognized by the local Commune or District only. Although they are not recognized on a national level but still have possessory status. Soft titles are often preferred as they save us from transfer taxes and fees. The government is working on converting all the soft-titled properties to hard titles.
Why do you need to look for boundary disputes?
Boundary issues are very common in Cambodia and if not taken care of before the purchase can drag the foreign owners into a never-ending dispute. Make sure that boundaries are registered earlier, either of your land or your home.
Owning an apartment, land, or property in Cambodia isn’t an issue. All you need is to make sure that you are buying it through an authentic source and the seller owns the property. Keep all the legalities in mind to avoid falling for some scam since foreigners are the easiest target for such people. If you are friends with some local, do not shy away from seeking their help in that matter. Happy living in one of the most cherished tourist spots!