How to buy property in Cambodia – A brief guide
Buying a property is a significant decision in one’s life, and therefore it is essential to consider all the pros and cons before investing in a property. Cambodia has seen an upsurge in the economic development, education and job sectors, and there is also a rising demand in the real estate industry. To know more details on the current trends and properties available visit fazwaz-kh.com. Foreigners are more interested in investing here more than ever, due to the high rental returns and the future promises that the land holds as an investment. However, here are a few things to consider before investing in Cambodia.
This place restricts ownership of land areas for foreigners, and they can buy property above the first floor. So the ideal option for a foreigner would be invested in a condo. Condos are similar to buying apartments, but owning a condo gives complete ownership of the area, added to the common areas which can be utilized by the owner. Identifying areas that appreciate faster than others would be a wise decision. A better understanding of the taxes on ownership, sale, and transfer would give a better hand on the buyer’s budget and the total cost involved. Moreover, read below the options that are available for a foreigner to invest in the land areas.
Who can own land in Cambodia?
- Any person who has ownership of 51% of shares in a Cambodian company is entitled to purchase land.
- A leasehold agreement for a period of 15-50 years is also another possible way of owning a land area here.
- Having Cambodian citizenship is yet another which ensures one is entitled to purchase a piece of land in this country.
- Buying property through a nominee is also one of the ways. However, the buyer has to ensure that the nominee is trustworthy.
What should I know about the land title?
A title deed is the ownership document of the property which entitles the right of the buyer over the property. There are different terms that the buyer has to familiarize him or herself with before investing here. Around four types of titles are available here: Soft title, Hard title, Strata Title, and LMAP.
- Soft titles are the ones documented at the local level. Most of the properties in cities and nearby areas are registered through the Soft Title method.
- Hard titles are recognized more at the national level which gives you a better edge than the soft title.
- LMAP which means Land Management and Administration Project is surely one of the safest ways to register your property which entitles hassle-free ownership of your property.
- Strata title is nothing but the rights of the buyer to use the common areas in an apartment or condo building such as the staircase, outdoor areas like pool, driveways, etc.
- Cash payment for the property is ideal as far as Cambodia is concerned because it gives you certain benefits.
- One also has to know about the taxes such as the Transfer tax, Property tax, and VAT tax before buying the property, as it will give a fair idea of the total cost involved.