Cambodia's Foreign Ownership Quota and Resale Liquidity

Prepared by the NovAsia Editorial Team

The statement that “foreigners can own up to 70% of a condominium” is usually presented as a simple permission to buy. While a project is new and the developer confirms that quota remains available, that may appear to be the end of the issue. The commercial significance becomes clearer later, when an owner wants to resell the apartment to another foreign buyer.

The quota does not directly determine the physical quality of the unit or its rental income. It affects the group of buyers to whom the ownership right can be registered and therefore forms part of resale liquidity. For an international investor, it is an exit consideration as well as an entry requirement.

Several common simplifications create confusion:

• the quota is counted by the number of apartments, although the rule refers to area;
• a full quota is treated as blocking every transaction between foreigners;
• or, at the other extreme, a title once issued to a foreign owner is treated as guaranteeing an effortless future transfer without a fresh check.

The actual position requires the seller's status, buyer's status, current registration of the unit, building records and proposed transfer to be considered together.

What Cambodian law permits

Cambodia's 2010 law allows legally qualified foreigners to own private units in co-owned buildings and to use and enjoy the common areas under the special co-ownership regime.

Foreign ownership is permitted only from the first floor above ground level. Ground-floor and underground units are excluded from this form of foreign ownership. The land beneath the building does not become the foreign unit owner's property.

The official English version available through the Council for the Development of Cambodia is expressly identified as an unofficial translation. The Khmer text and advice from a qualified Cambodian lawyer should therefore control where wording or application is disputed.

A transfer by agreement does not become effective merely because the parties sign a sale agreement and exchange money. The law states that a transfer of special co-ownership must be registered in accordance with the applicable registration rules.

This matters to liquidity. A willing buyer is not enough. The transaction must be capable of registration in the proposed buyer's name.

The 70% limit is calculated by area

Sub-Decree No. 82 is commonly cited as limiting foreign ownership to no more than 70% of the total surface area of all private units in a co-owned building.

It is not a limit of 70% of the number of apartments.

This distinction becomes material in a project containing units of very different sizes. One hundred small studios and twenty large family apartments may produce one percentage by unit count and a very different percentage by surface area. A small number of large penthouses can consume a meaningful part of the available foreign ownership quota.

For that reason, a sales statement such as “only 10% of foreign units remain” is not enough on its own. It may be a useful commercial shorthand, but the legal calculation should be tied to registered private-unit area and current ownership records.

The foreign owner's title documentation is expected to identify the surface relationship relevant to the unit and the co-owned building. This reflects an area-based system rather than a simple count of door numbers.

A buyer should ask:

• what total private-unit area is used for the building;
• what area is currently registered to foreign owners;
• which authority or documentary record supports that figure;
• whether pending transfers have already been taken into account;
• and whether the proposed transaction itself changes the foreign-owned area.

The developer may know its sales allocation, but developer spreadsheets are not necessarily the complete registration record after years of private resales, inheritance and transfers. The building manager may know who occupies the units, but an internal owner list does not replace cadastral evidence.

One building can contain several legally different resale markets

A completed condominium may contain:

• units registered to foreign owners;
• units registered to Cambodian owners;
• unsold units still held by the developer;
• units paid for by buyers whose registration is incomplete;
• or contractual positions that have not yet become registered ownership.

Physically identical apartments can therefore have different resale routes.

A Cambodian buyer may generally consider units held by Cambodian or foreign owners, subject to the normal transaction checks. A foreign buyer needs the unit to satisfy the foreign ownership regime, including the building status, floor, title and quota position.

This means that a building does not necessarily have one single market for one-bedroom units. It may contain several overlapping markets with different groups of eligible buyers.

Where international demand is strong, a unit that can be registered transparently to a foreign buyer may attract particular attention. Where the active demand is predominantly Cambodian, the quota may have little influence on pricing.

The quota does not automatically make a foreign-owned unit more valuable. It restricts the supply of a particular legal form. A price premium can arise only when buyers actually value and compete for that form.

Three resale scenarios must be kept separate

The practical effect of the quota is easier to understand through three basic scenarios.

A Cambodian owner sells to a foreign buyer

This transfer increases the area held by foreigners.

If the quota is already exhausted, or the new transfer would push the building above the applicable 70% limit, the foreign buyer should not assume that the unit can be registered under the foreign private-unit ownership regime.

This is the clearest situation in which free quota is directly relevant.

Before paying a non-refundable amount, the buyer should obtain current confirmation that the proposed registration is available.

A foreign owner sells to a Cambodian buyer

The law expressly addresses a transfer from a foreign private-unit owner to a Cambodian. After the required registration, the Cambodian buyer acquires ownership of the private unit and the applicable undivided ownership rights in the common areas.

In area terms, this reduces foreign ownership and releases quota capacity.

For the seller, this route may widen the buyer pool. Whether it produces the best price depends on Cambodian demand for that building and unit type.

A foreign owner sells to another foreign buyer

Mathematically, the total foreign-owned area may remain unchanged because one foreign owner is replaced by another in relation to the same private unit.

That is different from converting a Cambodian-owned unit into foreign ownership.

It would nevertheless be unsafe to present this as an automatic or unconditional registration right. The parties still need to confirm:

• the seller's registered title;
• the buyer's legal eligibility;
• the current cadastral status;
• the unit's floor and classification;
• the absence of restrictions or encumbrances;
• and the registration practice applicable to the transaction at that time.

The correct conclusion is not “a full quota blocks every foreign-to-foreign resale”, nor is it “an existing foreign title makes quota irrelevant forever”. The proposed transfer should receive targeted legal and cadastral confirmation.

A full quota does not have one universal commercial effect

A building close to the limit can behave in different ways.

If many foreign-owned units are already registered and international buyer demand is stable, those units may face less competition from Cambodian-owned units that cannot be converted to foreign ownership without available quota. This can support buyer interest in a clearly documented foreign-owned unit.

If international demand is weak, a full quota creates no premium by itself. Foreign sellers may simply compete with one another for a limited pool of new foreign buyers.

If the developer still controls unsold quota and offers instalments, furniture packages or promotional discounts, a private seller competes with the developer as well as other owners. Formal scarcity may not help while the primary sales channel remains stronger.

A full quota can also create a documentation problem. Buyers may hesitate if the developer, manager and sellers give inconsistent answers about which units can be transferred. A unit that is legally transferable can still take longer to sell if no one can demonstrate the registration route promptly.

The phrase “foreign quota nearly sold out” can therefore be:

• a genuine legal warning;
• a marketing claim;
• a sign of future scarcity;
• or merely a neutral statistic.

Its investment meaning depends on actual demand and documentary clarity.

The buyer pool matters more than the percentage alone

Liquidity means finding a buyer within a reasonable period without an excessive discount. It is not simply the legal ability to sell in theory.

Where the apartment was designed and marketed mainly for foreign investors, the ability to register ownership in a foreign buyer's name is part of the product. Uncertainty about quota or registration sends that buyer to another project with a clearer route.

Cambodian buyers should not be treated as an automatic fallback. They may have different preferences regarding:

• unit size;
• parking;
• district;
• financing;
• family use;
• price;
• building management;
• and resale history.

A small investor-oriented unit may appeal strongly to an overseas buyer but less to a local family. Conversely, a mature building with strong local demand may allow a foreign seller to exit more easily to a Cambodian buyer than to another foreign investor.

Before buying, an investor should identify two plausible exits:

1. resale to a foreign buyer;
2. resale to a Cambodian buyer.

If one route is unavailable, the other must be sufficiently broad to preserve liquidity.

A claim that “anyone can buy it later” is not an exit analysis. The buyer pool should be defined by legal eligibility, budget, financing and real demand.

Documentation can shorten or lengthen the sale

Quota risk is often discovered too late.

The seller agrees a price, the buyer starts arranging funds and the parties discuss handover. Only then do they realise that the building's foreign ownership records, title status or registration route require additional confirmation. Delay causes doubt and gives the buyer an opportunity to withdraw.

A strong resale package should be prepared before marketing. It typically includes:

• current ownership certificate;
• seller identity documents;
• registered private-unit area;
• details of the co-owned building;
• evidence of the absence or treatment of encumbrances;
• condominium fee clearance;
• and a clear understanding of the transfer procedure.

Where the buyer is foreign, the package should also support the proposed foreign registration route. The seller's lawyer should distinguish between a unit already registered to a foreign owner and a Cambodian-owned unit that would increase the foreign-owned area.

A manager's internal spreadsheet can support the review but should not be treated as the final legal source. An agent's experience is useful, but the registration conclusion should not rest only on an oral assurance.

Because the CDC English translation is unofficial, the transaction documents and legal opinion should be based on the official Khmer law and current cadastral practice.

Quota affects price through time, uncertainty and transaction risk

The quota does not reduce the physical value of the apartment. It influences buyer behaviour.

A buyer can move faster where:

• the unit's title is clear;
• foreign eligibility is confirmed;
• the quota treatment is understood;
• the seller's documents are complete;
• and the registration process is mapped.

Where the status is uncertain, the buyer may:

• demand a discount;
• make the deposit fully conditional;
• delay the transaction;
• or select another project.

A single distressed sale can distort the apparent market. A seller who needs to exit urgently may reduce the price because the documentation is incomplete. Future buyers then use that transaction as a comparable even though the discount reflected legal uncertainty rather than the apartment's view, floor or condition.

A price premium is possible where foreign-registerable units are genuinely scarce and demand exceeds supply. It should be supported by actual completed resales, not by a sales agent's statement that the quota is “almost full”.

The market pays for a right that can be used. Scarcity without a reliable registration route does not create useful value.

The developer may treat quota as a commercial resource

During the primary sales period, the developer usually controls the release of unsold units and monitors the allocation between Cambodian and foreign buyers.

The developer may:

• reserve part of the available area for overseas channels;
• promote certain layouts to foreign buyers;
• use different payment plans;
• or delay the release of some quota.

This is not inherently problematic. Managing the allocation can help prevent the project from exceeding the legal limit and preserve sales options for different audiences.

The risk arises where a buyer receives only a commercial promise that foreign ownership will be available later. In an off-plan project, the individual certificate may not yet exist and the ownership structure continues to change.

The reservation agreement and SPA should state:

• what ownership right is promised;
• who is responsible for registration;
• when the title process should occur;
• what documents will be provided;
• and what happens if the promised foreign registration cannot be completed.

After handover, the developer's commercial control becomes weaker. Private resale, succession and transfers between Cambodian and foreign owners change the ownership structure. The developer may still maintain records, but its original allocation sheet should not automatically be treated as the current cadastral position five years later.

A model example: identical units, different exits

Assume that one building contains three physically identical one-bedroom units. The following is an illustrative model.

A foreign buyer may see three different legal routes despite identical size, view and furnishings.

Unit B may be cheaper yet unavailable for registration to that foreign buyer if the quota is full. Unit A may fit the buyer's objective more directly because it is already registered under foreign ownership, but the new transfer still needs confirmation. Unit C may compete with instalments, warranties or developer assistance.

For a Cambodian buyer, the differences may be less important. That buyer may focus primarily on price, condition, financing and management.

The example explains why one average price for the whole building can be misleading. Legal status can affect comparability alongside floor, orientation, tenancy and furniture.

Do not use an artificial structure simply to bypass the limit

Where direct foreign ownership is unavailable, a buyer may be offered alternatives such as:

• registration in the name of a Cambodian acquaintance;
• acquisition through a Cambodian company;
• a long-term lease;
• a trust or other holding structure;
• or control through private agreements.

These structures do not produce the same right as direct registration of the private unit to the foreign buyer. Each has different control, enforcement, tax, succession and resale consequences.

Nominee ownership is particularly dangerous when presented as a harmless technicality. The person on the title is the legal owner, while the foreign investor's control depends on additional documents and their enforceability.

A company, lease or trust structure may be appropriate in a properly advised case. It should not be disguised as ordinary foreign condominium ownership.

Complex ownership normally narrows the future buyer pool. The next buyer must accept both the apartment and the structure. If the investment works only by assuming that a legal restriction can be ignored, the principal risk lies at the centre of the transaction.

What to confirm before buying

The buyer does not need a lengthy theoretical memorandum. A small number of questions determine whether the intended transaction is possible:

• Is the building registered as a co-owned building?
• Does the unit have the appropriate ownership certificate or a documented path to one?
• On which legally classified floor is the unit located?
• Who is the current registered owner?
• What registered area is attached to the unit?
• What total private-unit area is used for the quota calculation?
• What foreign-owned area is shown in current records?
• Does the proposed transaction increase foreign ownership?
• Who is giving written confirmation that the buyer can be registered?
• What happens to the deposit if registration is unavailable?

The answers should be obtained before a non-refundable reservation or purchase payment.

The closer the building is to the limit and the more complicated the unit's history, the less weight should be placed on an oral statement by an agent or sales employee.

What a seller should prepare before resale

A foreign owner planning an exit should not wait for the first buyer to ask about quota.

Prepare:

• a clear copy and controlled inspection of the title;
• seller identification;
• proof of marital or corporate authority where relevant;
• mortgage and encumbrance information;
• current building fee clearance;
• private-unit area;
• information on the building's co-ownership registration;
• the current lease and tenant deposit, if occupied;
• a proposed registration and payment sequence;
• an explanation of the foreign ownership route for the expected buyer profile.

A seller cannot guarantee that every future buyer will qualify or that the cadastral authority will accept incomplete documents. The seller can remove avoidable uncertainty.

Where the building has a history of foreign-to-foreign transfers, completed examples may support practical confidence. They do not replace current legal confirmation.

Contract protection when quota is uncertain

A reservation agreement or SPA should not make the buyer bear all quota risk.

Possible protections include:

• foreign registration as a condition precedent;
• a deadline for documentary confirmation;
• seller cooperation with the cadastral review;
• refund of the deposit where registration is unavailable without buyer fault;
• prohibition on substituting a different ownership structure without consent;
• clear treatment of legal and registration fees;
• a long-stop date;
• and a defined payment schedule linked to registration stages.

The contract should identify the exact unit and ownership route. A broad clause allowing the seller to replace foreign ownership with a lease or company structure changes the product and requires separate consent.

Where the seller is already a foreign registered owner, the agreement should still make completion conditional on acceptance of the new buyer's registration documents.

A small deposit can create a large practical problem if it is described as non-refundable before the ownership route has been confirmed.

The investment conclusion

Cambodia's foreign ownership quota is not merely an entry rule. It forms part of resale liquidity because it affects the eligible buyer pool and the registration path on exit.

The limit is calculated by the surface area of private units, not by the number of apartments.

A Cambodian-owned unit proposed for transfer to a foreign buyer requires sufficient quota capacity. A transfer from a foreign owner to a Cambodian buyer reduces foreign-owned area. A resale from one foreign owner to another may not increase that area mathematically, but it still requires transaction-specific confirmation of registrability.

The commercial outcome depends on demand. A full quota can make a transparent foreign-owned unit comparatively scarce, but it creates no automatic premium where foreign demand is limited or the developer offers stronger competing stock.

The strongest investment approach treats quota as one part of the exit profile alongside title quality, building management, price, rental performance and the depth of both Cambodian and foreign buyer demand.

This material is for general information and is not legal advice. The available foreign ownership area, eligibility of the buyer and registrability of a specific transfer should be confirmed with a qualified Cambodian lawyer and the competent cadastral authority before any non-refundable payment.

Sources

1. Kingdom of Cambodia — Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings, promulgated 24 May 2010. Used for the rules on qualifying foreign owners, floor restrictions, registration of transfers and transfers between foreign and Cambodian owners. The English text published by the Council for the Development of Cambodia is an unofficial translation; the Khmer text prevails.
2. Royal Government of Cambodia — Sub-Decree No. 82 on the proportion and method of calculating private-unit area that may be owned by foreigners in co-owned buildings, dated 29 July 2010. Used for the 70% limit based on total private-unit surface area.
3. DFDL — “Foreign Ownership and Condominiums”. Used for professional commentary on the area-based calculation, foreign ownership certificates and registration practice. Accessed 17 July 2026.
4. BNG Legal — commentary on foreign ownership of Cambodian real estate, July 2024. Used as secondary confirmation of the 70% restriction and the role of the land authority.
5. Realestate.com.kh — guidance on property ownership options for foreigners. Used for market context only; legal conclusions are based primarily on the law, sub-decree and transaction-specific professional advice.

Frequently asked

How is Cambodia's foreign ownership quota calculated?

The limit is no more than 70% of the total surface area of all private units in the co-owned building, rather than 70% of the number of apartments.

Can a foreigner own an apartment on the first floor?

The law allows foreign ownership from the first floor above ground level. The ground floor and underground floors cannot be owned by foreigners under this regime.

What happens when a building's foreign ownership quota is full?

A unit owned by a Cambodian cannot simply be registered to a new foreign buyer if doing so would exceed the limit. A resale of a unit already registered to a foreign owner should be analysed separately and confirmed against current cadastral records and transaction requirements.

Can a foreign-owned apartment be sold to a Cambodian citizen?

Yes. The law provides for a transfer from a foreign owner to a Cambodian buyer, who acquires the private unit and the applicable undivided rights in the common areas after the required registration.