Buying Property In Cambodia
Cambodia is one of the fastest-growing emerging countries in the world. Less explored and undervalued therefore creating a far greater opportunity for property investment. There a growing interest for investors to look into buying property in Cambodia.
Why there is an influx of foreign developers and investors looking into the property market in Cambodia?
Cambodia is rapid growing and transforming. More visitor are going to Cambodia for work or leisure in the recent years. Therefore the country has plans to build a new mega airport as the growth in air traffic increases.
Cambodia has a stable GDP of 6-7% growth in recent years. It is expected to grow 7.1% in 2017 maintaining its growth over the last 5 years. Many international firms are starting to invest in Cambodia seeing the potential. Taking advantage of the comparatively low property price and the relative ease for foreigners to buy freehold property in Cambodia.
Knowing the brief background before actually buying property in Cambodia.
Some Factors to consider before investing in Cambodia.
Cambodia Property Tax
When investing in Cambodia property, these are a guide of the Cambodia property tax you should take note of.
|Cambodia Property Tax||Rate||When to pay|
|Transfer Tax||4% of Property Value||Upon Completion|
|Rental/income Tax||14% for Foreigner, 10% for Local|
of Gross Annual Rental
|Payable every year|
|Property Tax||0.1% of Property Value||Payable every year|
|Capital Gain Tax||0% for individual, 20% for Company||Payable upon disposing your property|
Transfer Tax – Upon completion of the development, 4% of the property value is payable .'”hard title” will be issued.
Rental Tax – As investment property, foreign investor are liable to pay 14% of the gross rent per annum. Local needs to pay 10% of the gross rent.
Property tax – 0.1% of the property value per annum. The value is determined by Immovable Property Assessment Committee.
Capital gain tax – Currently not applicable to individual, however if you are buying under company’s name 20% capital gain tax is payable upon selling your property.
In 2010 the government has passed the law which allow foreigners to buy property in Cambodia with certain restriction.
- Foreigners are not allowed to own properties on the ground floor of the building neither they allow to own a land outright
- A maximum cap of 70% condominium units allow to be acquired by foreigners for any condominium development.
Foreigners are allowed to own freehold and leasehold condominium in Cambodia as long as they do not violate these restrictions.
The Bridge Cambodia Freehold Strata Retail Mall
The Bridge Cambodia is strategically located right in the heart of Cambodia’s capital Phnom Penh. Walking distance to upcoming Shangri-La Hotel, NagaWorld 1 & 2 (Casino-Hotel), Australian Embassy, Russian Embassy, Ministry of Foreign Affairs, National Assembly, AEON Mall etc.
Developed by Singapore-based Oxley International and Cambodia-based Worldbridge Land.
Nett 70% Guaranteed Rental Returns Over 10 Years (with option to renew).
The Peak @ Cambodia Phnom Penh
The Peak is an integration of residential apartments, office space, retail and F&B outlets as well as hotel space which consists of about 300 rooms to be managed by renowned Shangri-La Hotel Group.
Located at the tourist hub, near the Central Business District and International Finance Centre.
Click the below link to understand more on the country’s taxes, rules and regulation when buying overseas property.
*Disclaimer*: Regulated by CEA. All forms of investments carry risks, including the risk of losing all of the invested amount . Such activities may not be suitable for everyone. This is an overseas investment. As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand. Details of Guaranteed Rental Returns will be accompanied with respective Sales & Purchase Agreement.