FAQ: real estate and investing in Cambodia

This page gathers answers to the questions most often asked before buying property in Cambodia: about foreign ownership, yield and developer guarantees, payment and installments, remote deals, taxes, risks, and how we work. If your question isn't here — write to us and we'll answer personally.

Most of these answers come from one place: Elvira Shamuratova, our partner in Phnom Penh, who was invited onto Property Show — an outside programme about overseas property, not our channel — as a market expert. The questions there came from a third-party host rather than from us, and they matched this page almost line for line: whether a foreigner can own, where the yield comes from, taxes and risks. Everything below is the same material in writing, with figures, links to the detailed guides and the caveats there is never time for in conversation.

Where to start — by purchase stage

Choose a stage or topic — each card leads to a detailed guide with documents, checks and limitations. The full Q&A follows below.

Most important — before you pay

Six checks worth doing before any payment:

• Who is the seller and developer — the contract party, not a reselling middleman.
• Whether this specific unit can be registered to a foreigner — floor and the 70% quota.
• Reservation refundability and the SPA signing deadline.
• Who receives the payment — whether it matches the contract party.
• The real (effective) price — after discounts and required packages.
• What exactly is fixed in the SPA — price, timing, GRR/buy-back, penalties.

Foreign ownership

Can a foreigner buy property in Cambodia?

Yes. A foreigner can own an apartment or office above the ground floor directly, in their own name, under strata-title. There is one limit: foreigners may own up to 70% of the private unit area in a building. A foreigner cannot own land or the ground floor directly. Read more in the article can a foreigner buy property in Cambodia.

What is strata-title?

Strata-title is a title to an individual apartment in a building where the common areas and the land beneath it are jointly owned by the owners. It is precisely strata-title that lets a foreigner own an apartment directly and register it in their name on the cadastre. A breakdown is in the article strata-title in Cambodia.

How does strata-title differ from freehold and leasehold?

Freehold is full, perpetual ownership. Strata-title is a form of direct ownership of an apartment in a multi-unit building (what's available to a foreigner). Leasehold is a long-term lease, not ownership: you use the property under a contract, but it isn't registered as yours. For an asset in your own name you need strata-title, not leasehold.

What is the 70% foreign quota?

By law, foreigners may own no more than 70% of the total private unit area in a single building. Before buying, you need to check whether the specific apartment falls within this quota in the chosen project. We verify this during property selection.

Can a foreigner buy land or a house in Cambodia?

Land cannot be registered directly to a foreign individual. Indirect schemes exist (through a company with local participation, a long-term land lease, nominee structures), but they are more complex and carry additional risks. For most investors, an apartment or office under strata-title is simpler and safer.

Yield, GRR and buy-back

What is GRR — guaranteed rental return?

GRR (Guaranteed Rental Return) is a programme under which the developer pays a fixed annual percentage regardless of whether the property is let. Developer marketing materials state that selected Odom Tower offices may participate in an 8% net GRR programme for 5 years. This is the developer's statement, not a NovAsia forecast or outcome guarantee. In the selected unit's contract, check the net calculation base, term, payment currency and timetable, legal guarantor, deductions and early-termination consequences. What to check in the contract: what sum the percentage is calculated from, who the guarantor is, how and when it's paid, and what happens on early termination.

What is the guaranteed buy-back (GBB)?

GBB (Guaranteed Buy Back) is the developer's obligation to buy the property back at a pre-agreed price. Developer materials state that selected Odom Tower offices may have a buy-back option in year 5 at 110% of the purchase price. The actual right depends on the contract: check the liable party, activation conditions, payment deadline, unit-condition requirements, deductions, notice procedure and remedies for non-performance. NovAsia does not guarantee the buy-back. At the end of the term the buyer can choose: use the buy-back or sell the property themselves.

Where does "150% return over 5 years" come from?

It's the sum of two parts: rental income of 8% per year × 5 years = 40%, plus the buy-back of the principal with a premium = 110%. The 150% figure is the arithmetic result of the developer's marketing model: a stated 40% GRR over 5 years plus a 110% buy-back that includes return of the original purchase price. It is not an annual yield or a confirmed future payment. The calculation applies only if both mechanisms are fully performed under the selected unit's contract. A detailed calculation on a real example is on the Odom Tower page.

Is 150% my profit?

No, and this is an important point. 150% is the total return (the principal + rent + buy-back premium), not net profit. Around 50% is the calculated difference above the original price in the developer's model, not guaranteed net profit. Costs outside the programme, taxes, delays, early exit and non-performance by the obligor may change the result. Model separate scenarios and reconcile them with the contract before buying. We deliberately always show both figures, so the calculation is honest and there's no disappointment at the meeting.

Do all properties have the GRR and buy-back programme?

No. Developer data indicates that the GRR + GBB programme is not available for every unit. Participation of a specific office should be evidenced by a dated availability list and an SPA schedule. A 'first-come' phrase does not prove scarcity by itself and should not replace contract review or create artificial urgency. Availability and terms are confirmed on request. Not all projects have such a programme at all — in residential complexes, for example, income is calculated from market rent.

What is the yield on projects without GRR?

There is no single percentage for projects without a contractual rental programme. Model the selected unit from dated comparable rent less vacancy, management, service charges, repairs, furniture, tax and other costs.

An older range can only be an input with a stated period and sample; it is not a current characteristic of the whole market.

Buying, payment and installments

How does buying work step by step?

Briefly: request and consultation → property selection → booking → SPA contract and first payment → installment payments → handover and title registration. Each step is described in detail on the how buying works page.

What is the SPA?

The SPA (Sales & Purchase Agreement) is the main purchase contract. It fixes the price, the specific unit, the payment plan, completion dates, GRR/GBB terms (if any), and the rights and obligations of the parties. The contract can be signed at the developer's office or remotely.

What installments are available?

Terms depend on the project, unit and date. Earlier offers have used a 0% label and different periods, but that does not establish current availability or that the instalment price equals the cash price.

Before booking, obtain a dated offer and compare total price, payments, dates, penalties, cure period, assignment and termination.

How much is the booking fee?

There is no fixed market tariff. The amount applies only to a particular lot and date. Before paying, the document should identify the unit, hold period, credit against the price, refund conditions and grounds for retention.

Do not assume the booking is refundable merely because the SPA has not been signed.

How does payment from abroad work?

The route depends on your bank, currency, contract and official recipient. Send funds to the account stated in the SPA or verified by an authorised representative of the seller.

Agree the payment reference and source-of-funds documents before sending. Keep the bank confirmation and seller receipt.

Can I get a loan from the developer?

A seller or related company may sometimes finance part of the price, but this is not a standard buyer right or universal rate. Availability must be confirmed in writing for the selected unit and date.

Check the lender legal identity, effective rate, currency, fees, security, schedule and default consequences.

Remote deals

Can I buy without ever visiting Cambodia?

Yes, many clients buy remotely. The consultation is online, the booking and SPA are remote, and payments are by transfer. If needed, a notarised power of attorney is issued to the partner in Phnom Penh. Details are in the article how to buy an apartment in Cambodia remotely.

Who oversees the property while I'm abroad?

The NovAsia partner in Phnom Penh provides on-the-ground presence: construction monitoring, photos and video from the site on request, communication with the developer's office, and presence at handover. This replaces in-person presence at the offline stages.

Do I need a visa or residency to buy?

No. The right to buy property doesn't require residency or a residence permit. And the purchase itself doesn't automatically grant residency — these are different things. Read more in the article buying property abroad without residency.

Taxes and costs

What taxes and fees apply on purchase?

The main tax point on a registered property transfer is stamp duty. Confirm the operative rate and official assessed-value basis for the transaction date; the advertised or SPA price is not always the tax base.

Budget legal review, registration, banking and project charges separately.

What annual costs does an owner have?

The annual budget may include property tax, management and reserve-fund charges, utilities, insurance, repairs and rental costs.

Building charges and other costs are property-specific. Obtain the current tariff, budget, arrears statement and rate-change rules.

Is there a tax on rental income?

Yes, rental income can be taxable. The result depends on the landlord, tenant, amount, payment type and contract.

Withholding may apply with a business tenant or payment to a non-resident. Do not add rates automatically.

Is there a capital gains tax on resale?

The capital-gains regime for immovable property has changed and been deferred, so commencement and calculation method must be reconfirmed immediately before a sale.

Even during a deferral, stamp duty, withholding, business tax and foreign tax may still apply.

Risks and reliability

How risky is it?

Cambodia is a developing market: potential returns come with risks. The main ones: construction delays, changes in demand and rental rates, limited resale liquidity, developer quality, legal changes, and management costs. These are normal property risks in a growing market, and it's important to weigh them soberly.

How can risks be reduced?

Check the developer's track record (how many projects delivered and on time), read the contract rather than the marketing materials, don't invest money you may need in 1–2 years, and where possible bring in an independent lawyer before the deal. We work only with developers that have a history of delivered projects.

What if the developer doesn't finish the building?

This is the key risk when buying at the construction stage. The main protection is choosing a developer with a proven history of projects delivered on time. It's also important to check the contract terms for delay and termination. We highlight this during selection.

What if I change my mind after booking?

Refund terms depend on the contract: a booking may be refundable or non-refundable, and each project has its own rules. This needs to be clarified before paying the booking — we discuss the terms in advance.

About NovAsia

Who is NovAsia?

NovAsia is an information and advisory project and an intermediary agency for selecting investment real estate in Cambodia. We help match a property, understand the terms and support the deal through partners on the ground in Phnom Penh. Read more on the about page.

How much do your services cost the buyer?

For the buyer, selection and consultation are free — we work as a partner of the developers. You pay the developer for the property under the contract; there's no separate buyer commission for selection.

Are you a developer?

No. We are not a developer, a bank or a party to the sale-and-purchase contract. You sign the contract directly with the developer. NovAsia helps with information, selection and support.

How do I get in touch?

Fastest is on Telegram: @novasiadmin. All contact methods are on the contacts page.

Cambodia and Phnom Penh

Why Cambodia specifically?

The key reasons: a dollar economy (settlements in USD, no tie to the local currency), direct foreign ownership of apartments, a low entry threshold compared with Dubai and Thailand, and a growing market. At the same time, this is a developing market with its own risks, which we don't hide.

Which districts of Phnom Penh are best for investment?

The most in-demand are BKK1 (the most prestigious, the centre of business and rental activity), Chamkarmon, Norodom Boulevard and Daun Penh. The choice of district affects the rental rate and liquidity. An overview is in the article districts of Phnom Penh.

Cambodia or Thailand / Dubai — which to choose?

The answer depends on budget, risk tolerance, horizon, ownership route, currency flow and exit plan. No country wins for every buyer.

Compare like-for-like assets using dated prices, costs, tax, ownership rules, rent and liquidity.

NovAsia projects

How do Odom Tower, Kingston Royale and Time Square 9 differ?

Odom Tower is an office project where separate contractual programmes may apply only to participating units. Kingston Royale and Time Square 9 are residential projects with different users and risks.

Do not compare them by one old starting price. Obtain the current unit, total price, payment plan, construction status, obligations and costs for each.

Can I buy several properties?

Yes. Many investors combine: for example, a yield property with GRR plus a residential one with a low entry. We'll help build a portfolio for your strategy and budget.