Co-ownership in Cambodia — foreigners' rights

In 3 bullets

• A foreigner may own a private unit in a co-owned building from the 1st floor up: the ground floor and basements remain off-limits (2010 Law, art. 6).
• The share held by foreigners in any one building is capped at 70% of total private-unit floor area (Sub-Decree No. 82 of 29 July 2010, art. 2).
• No land ownership for a foreigner: the Constitution reserves land for nationals (art. 44). You own the unit (Strata Title), not the soil or the common areas — which are held in undivided co-ownership.

The legal framework in brief

Before 2010, a foreigner could own no real estate outright in Cambodia. The Law on Providing Foreigners with Ownership Rights in Private Units of Co-owned Buildings (Kram NS/RKM/0510/006, promulgated 24 May 2010) created the only route to direct ownership open to foreigners: co-ownership (condominium).

Two rules shape this right:

• Minimum floor (art. 6): a foreigner may own a private unit only from the 1st floor up. The ground floor and basements are reserved for Cambodians — often used for shops and parking.
• Building cap (Sub-Decree No. 82 of 29 July 2010, art. 2): all units held by foreigners may not exceed 70% of the building’s total private-unit floor area. The remaining 30% must stay in Cambodian hands.

Strata Title: what you actually own

The Strata Title is the cadastral title issued for a private unit in a co-owned building. It is the only full-ownership title accessible to a foreigner in Cambodia.

• It is registered with the Ministry of Land Management, Urban Planning and Construction (MLMUPC) and carries the same force as a Hard Title once issued.
• It covers only the private unit (the walls, the habitable volume). The land and the common areas remain in undivided co-ownership among all co-owners.
• A building can only have units registered under Strata Title once it has been fully built in line with the regulations. Many buildings sold “as condo” obtained the Strata Title only late.

Common areas and the co-owners’ association

Beyond your unit, you hold a share of the common areas: land, foundations, structure, lobbies, stairs, lifts, roof, façades, shared facilities (pool, gym, generators).

• Co-owners’ association: the regulations on co-owned buildings provide for a co-owners’ association, the body that manages the common areas, votes the budget and appoints the management agent. As a foreign owner you hold voting rights in proportion to your share.
• Co-ownership charges: billed monthly, typically 0.5 to 1.5 USD/m²/month depending on standing (security, lifts, pool, gym, maintenance). They fund upkeep of the common areas.
• Reserve fund: well-run buildings set aside a fund for major works (roof, lifts). Its absence signals future capital calls.
• Co-ownership rules: the document setting out use of the common areas, house rules (pets, short-term lets, works) and how charges are calculated. Read it before signing.

Property tax and holding over time

• Holding: indefinite. A Strata Title has no expiry date.
• Annual property tax: currently 0.1% per year on the cadastral value of property worth more than 100 million KHR (~25,000 USD), declared and paid to the GDT (General Department of Taxation).
• Resale and rental: free, but resale to a foreigner remains subject to the building’s 70% cap. Renting out (to a Khmer or a foreigner) is allowed; rental income is taxable in Cambodia.
• Registration: any transfer of a unit is registered at the MLMUPC; the rental lease, by contrast, is registered at the Sangkat office (see the standard lease).

Practical risks

FAQ

Can I buy a ground-floor apartment as a foreigner?

No. Article 6 of the 2010 law reserves for foreigners the private units from the 1st floor up; the ground floor and basements are excluded. A ground-floor space can only be held via a lease or a Cambodian structure.

Is the 70% cap calculated by number of units or by area?

By private floor area. Sub-Decree No. 82 (art. 2) caps the foreign share at 70% of the building’s total private-unit floor area, not by number of apartments. Two buildings with the same unit count can therefore have different caps depending on unit sizes.

Is a Strata Title worth as much as a Hard Title?

Yes, once issued: it is registered at the MLMUPC and confers full ownership of the unit, of the same force as a Hard Title. The difference is that it covers only the private unit, not the land (which stays in undivided co-ownership).

What do you own of the common areas?

An undivided share (land, structure, lobbies, lifts, shared facilities), proportional to your unit. You vote at the co-owners’ association and pay monthly charges for their upkeep. You cannot sell your share separately from the unit.

How do you actually buy a unit?

The process (reservation, due diligence, SPA, title transfer, fees ~4-6%) is detailed in the Buying a condominium guide. Always have the Strata Title and the foreigner cap checked by a lawyer before paying.