Sometimes learning how to buy property in Cambodia seems an impenetrable maze, but it really is far easier than you might think, so long as you consult the experts. Here are some tips on how to buy property in Cambodia.
The first thing to know is that there are three forms of property title you can buy – hard title, soft title and strata title, which is private ownership in co-owned property such as condos.
Hard or Soft Title
Hard title is the strongest, and can be registered with the Ministry of Land Management Urban Planning and Construction. A transfer tax of 4% applies on any hard title transaction.
Soft title is most common, and is recognised at a local level, or sangkat. Purchasing soft title avoids transfer taxes and fees, however, you are potentially leaving yourself open to your ownership being contested by third parties. Although hard title is more expensive, it might prove to be a better and more secure investment in the long term.
Strata Title
Strata title was introduced in 2010, and is the only form of property that foreigners can legally buy in Cambodia. If you are looking to do this you should seek legal advice and don’t fall into the trap of buying soft title illegally. However there are ways that foreigners can legally buy property in Cambodia, such as nominee structure, which we can advise you at Borey Williams.
Leasehold Title
In addition to purchasing the freehold in a property, you can also buy a leasehold title for up to 50 years which is renewable for a further 50-year-period.
One golden rule is to ensure that the person you are buying from actually owns the property you are purchasing, which is why you should take legal advice and consult the experts at Borey Williams. Purchasing property in Cambodia can represent a great investment opportunity, but make sure that you take all the necessary precautions to ensure this investment does not go wrong.
