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Rental Income Tax in Cambodia
September 4, 2023, 6:54 a.m.
When buying a property for investment, the most common way to generate income is to rent the property. With the money collected from rent also comes rental income tax. Rental income tax in Cambodia is an essential aspect of property ownership since it is applicable to both local residents and foreigners. This article offers a look into rental income tax, including property categories, tax rates, and the registration process.Who Needs to Pay Rental Income Tax? All property owners, regardless of nationality, are subject to property tax. Resident property owners are obligated to pay a yearly tax rate of 10%, while foreign property owners must pay at a slightly higher rate of 14%.Types of Properties in the Rental Category: The rental income tax is levied on various property types, which include: Residential and commercial buildings or properties.Industrial and commercial installed equipment.Floating watercraft/homes or ships utilised for homestays or business purposes.Land devoid of structures employed for purposes such as stone, mine, coal extraction, lakes, and salt pan fields. This tax is collected from property proprietors or leaseholders.In this example, let's examine the rental income tax implications for two condominium units located on the same floor. Unit A is owned by a foreigner, while Unit B is owned by a local resident. Both units are rented out for $400.tax Property Owner Nationality Rental AmountTax Rate Tax AmountUnit A Owned by a foreigner)$40014%$56Unit B  (Owned by a Khmer citizen)$40010%$40In this scenario, the foreign property owner (Unit A) is subject to a 14% tax rate on their rental income of $400, resulting in a tax payment of $56. On the other hand, the Khmer citizen property owner (Unit B) is taxed at a rate of 10%, leading to a tax payment of $40. How to Register for Rental Income TaxTo become a property tax taxpayer, property owners with properties worth $25,000 or more must register at their respective tax branches. The process involves completing two forms:Tax Form PT01 - A form issued by the General Department of Taxation (GDT) to outline property specifics.Tax Form PT02 - A GDT-issued tax application form.When Property Tax Needs to Be PaidProperty tax payments are due annually and must be settled by September 30 each year. Property Taxes can be paid via local tax office branches or through ACLEDA Bank, Canadia Bank, Vattanac Bank, or Cambodia Public Bank. For already registered properties, taxpayers will only need the tax payment receipt of the previous year or their Property Tax Registration ID.Seeking more information on property in Cambodia? Tell us what you need, and let us do the searching for you! Click Here
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Property Types in Cambodia
September 4, 2023, 6:41 a.m.
When looking to buy property in Cambodia, you'll encounter several available types, each with its unique characteristics. But which one should you choose? In this article, we'll explore each property type, providing you with a better understanding of the options available in the Cambodian property market.CondominiumA condominium refers to a building or a complex of buildings that contain several individually owned flats. Condominium developments are generally high-rise buildings that are newly constructed with a wide variety of modern furnishings and amenities. While most condominium units are in buildings that only house condos and amenities, there exists also mixed-use developments that can also house space, commercial offices, and, in some cases, hotels.(Picture Credit: Odom Tower)What’s the difference between a Condo and an Apartment?In Cambodia, apartments generally differ from condominiums by a few factors. Apartments are found in buildings built before 2010 and are not eligible for strata titles. Centrally owned buildings (one owner) regardless of it being pre or post-2010 will typically be called apartment buildings or apartments, given there are additional services such as weekly cleaning included. Nevertheless, the two terms often overlap and are used interchangeably in Cambodia.VillaFreestanding houses are referred to as villas and usually have a garden or outdoor area. Villas are found across the country and are used to house businesses, Cambodian families, and expat renters. There are both newly built villas and restored colonial-era villas. In the more central parts of Phnom Penh, well-maintained villas are in high demand. Traditionally, inner-city villas were used for all purposes, such as retail, office, and residential properties. However, with heavy property development in critical districts of Phnom Penh, Siem Reap, and Sihanoukville, many of these villas are being demolished to make way for new buildings, and the supply of freestanding villas (outside of borey developments) has since dropped considerably. Villas are also considered the premier property type within borey developments. Many borey developers offer villas, twin villas, shophouses and other variations within their projects. Villas are a particularly desired property type for wealthier Cambodian families, offering a house and land investment with plenty of space for extended family, pets, and vehicles.(Photo Credit: Kampot Villa)Traditional Wooden Khmer HousesTraditional Khmer houses were initially made of wood and built on stilts to protect them from floods. The area under the house is used as a family area or for keeping a family’s livestock safe at night. With the continuous growth of the real estate sector, the majority of wooden houses in central areas have been renovated, and the areas underneath have been turned into ground-floor structures made of concrete. Many have also been converted into restaurants or tourism operations. Outside of the inner city, however, these traditional houses can be seen, especially in districts prone to flooding.Shophouses and Renovated ShophousesA shophouse is a type of architectural structure that combines both commercial and residential purposes within a single building. These buildings are commonly found in urban areas. Khmer-style shophouses are typically a standard size of 4 meters by 16 meters (13 feet by 52 feet). Generally, these shophouses are two, three, or four floors high, with a long and narrow layout. Shophouses are arranged in rows and share a common wall with neighbouring houses. This house style is popular with Cambodian families for this reason, as it allows for an additional revenue stream, especially when the house is located in a high-traffic area of the city or town. In some areas of Cambodian cities and key commercial streets, regulations stipulate that shophouse owners must use the ground floor of their homes for retail space and operate a shop if they wish to reside there. Shophouses can be rented as individual units for each floor or as an entire house. Renovated shophouses are becoming increasingly popular as they have the exact size specifications as traditional shophouses but include modern amenities and interior design. Shophouses generally feature mezzanine floors, which provide additional bedroom space.(Photo Credit: The Eco Residence)Serviced ApartmentsA serviced apartment is a fully furnished residential unit that is available for short-term or long-term stays and offers amenities and services similar to those provided by hotels. For example: fitness centers, swimming pools, on-site restaurants, and parking facilities, depending on the property's level and classification. These apartments are designed to provide a comfortable and convenient living space for travellers, business professionals, or individuals and families. Serviced apartments vary widely in terms of size, style and price, depending on the location and quality of the apartment complex.(Picture Credit: Time Square 306)BoreyA borey consists of a mixture of single villas, twin villas, hybrid villas, linked houses, shophouses, flat houses and retail space in a gated community. These developments tend to be concentrated on the outskirts of cities. There is a wide range of borey options across Cambodia, with various levels of construction quality and property management. Borey homes are the preferred choice of housing for the majority of Khmer families looking to invest in a new property, as they provide full infrastructure within the compound and a secure place for children to be raised.(Picture Credit: Prince One Tropica)  Looking for a property in Cambodia? Send us your enquiries, we do the job for you!Click Here
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Cambodia's Top 3 Best City For Condo Investment
September 4, 2023, 9:25 a.m.
In recent years, Cambodia's real estate sector has experienced remarkable expansion, captivating the interest of both domestic and global investors. The country's rapid urbanization, growing middle class, and resurgence in tourism activity following the pandemic provide excellent opportunities for property investment, particularly in the condominium market.In this article, we will explore the top three areas for condo investment in Cambodia: Phnom Penh, Siem Reap, and Sihanoukville. Phnom PenhAs the capital city and economic hub of Cambodia, Phnom Penh hosts the Kingdom’s seat of government and serves as the home to over two million Cambodians and expats.Over the years, the city has witnessed rapid development in various sectors, including real estate, infrastructure, and tourism. For example, the rapid development of areas such as Koh Pich, the construction of schools/institutions, and the addition of the new airport. All this combined it continues to attract many looking for better opportunities in the capital leading to a strong demand for residential properties. The growing middle class in Phnom Penh is driving a significant increase in consumer demand. As more people move up the economic ladder, there's a surge in demand for a wide range of goods, and services. In the capital city, international brands are increasingly present in the streets of Phnom Penh. In recent years, popular franchises like Starbucks, Papa John’s, 7-Eleven and Zara have entered the market showing interest in the Cambodian market. In Phnom Penh, the popular residential areas for expats and locals who want to be close to the city centre include BKK, Chamkarmon, and Tonle Bassac. Prime location offers convenient access to commercial centres, schools, and entertainment facilities. Upcoming areas with a growing amount of amenities are Chroy Changvar and Koh Norea.     In Phnom Penh, the average sale price of condo units is as follows:Studio units cost an average of USD 80,0001-bedroom condominium units cost an average of USD 110,0002-bedroom counterpart units cost an average of USD 160,0003-bedroom counterpart units cost an average of USD 290,000To find condos available in Phnom Penh, click hereSiem ReapRenowned for its ancient temples, including the world-famous Angkor Wat, Siem Reap has emerged as a tourist destination. The city's popularity among international visitors has created a strong demand for accommodation and businesses related to the tourism industry. One notable aspect of Siem Reap's urban landscape is the absence of towering skyscrapers or high-rise buildings. This distinct feature is a result of building height restrictions that are in place to preserve the view and cultural significance of Angkor Wat. As a result, the city's skyline remains relatively traditional with the low-rise nature of buildings and condominiums maintaining the city's unique charm and tranquil atmosphere. Many expats will choose Siem Reap as home regardless due to its eclectic mix of culture, tourism and laid-back Khmer country lifestyle. Siem Reap is an appeal for starting businesses, especially in the food and beverage, hospitality, and tourism sectors. The construction of Siem Reap's newest airport, the Angkor Siem Reap International Airport, has been completed and is scheduled for an official inauguration in October 2023. With newly enhanced facilities, it is expected to attract more tourists to the city.The prime residential areas in Siem Reap include Wat Bo, Sala Kamreuk, and Svay Dangkum, offering proximity to the city centre and major attractions like Pub Street. In Siem Reap, the average sale price of condo units is as follows:1-bedroom condominium units cost an average of USD 73,0002-bedroom counterpart units cost an average of USD 108,0003-bedroom counterpart units cost an average of USD 148,000To find condos available in Siem Reap, click here.SihanoukvilleSituated along Cambodia's southwestern coast, Sihanoukville is a rapidly developing coastal city. It is known for its surrounding islands Koh Rong and Koh Rong Sanloem and is also a key commercial hub for Cambodia. Home to the Sihanoukville Autonomous Port (SAP), it has the greatest capacity of the Cambodian ports due to its deep-sea port and direct feeder capacity to Singapore and other larger international ports. Sihanoukville also boasts the country's first expressway linking to Phnom Penh. It has significantly reduced the travel time by half, and as a result, Sihanoukville has experienced a surge in local and international tourism since its opening. The city is divided into several areas, and popular beaches include Ochheuteal, Otres and Serendipity.In Sihanoukville, the average sale price of condo units is as follows:1-bedroom condominium units cost an average of USD 75,0002-bedroom counterpart units cost an average of USD 165,0003-bedroom counterpart units cost an average of USD 260,000To find condos available in Sihanoukville, click here.In conclusion, the three cities in Cambodia with potential for condo investment are Phnom Penh, Siem Reap, and Sihanoukville. Generally speaking, these cities are poised to experience significant growth in the future due to their ties with economic activities such as tourism and trade. Phnom Penh, being the capital, holds a distinct advantage. However, Siem Reap and Sihanoukville are also worth considering due to their high influx of tourists. Overall, it is important to evaluate the dynamics of property demand in each city to ensure a favourable return on investment.  Looking for a condo in Phnom Penh, Siem Reap or Sihanoukville? Send us your enquiries, we do the job for you!Click Here
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Tips When Buying Shophouse in Cambodia
August 31, 2023, 6:37 a.m.
When exploring property options, you will undoubtedly come across shophouses. Regardless of whether they are newly built or old, they represent a unique property type that can be found all over Southeast Asia, and Cambodia is no exception. However, the question arises: What are the key considerations needed when purchasing shophouses? In this article, we will explain various types, locations, and property histories.Types of Shophouses Shophouses are possibly the most desired property for Cambodians, due to their versatility, whether it be a business, home or even both. A shophouse layout comes in many shapes and sizes, however, they are generally a standard size of 4 metres by 16 metres (13 feet by 52 feet). Generally, these shophouses are two, three or four floors high, with a long and narrow layout. Shophouses sit in a row and share a joining wall with the neighbouring house. A traditional shophouse usually has a narrow frontage and extends deep into the block. It has a ground-floor commercial space, and the upper floors are used for living quarters. In contrast, modern shophouses often have wider frontages and more floors, in some cases, a mezzanine is also a feature of shophouses making them suitable for larger commercial enterprises. These unique properties offer the best of both worlds: a storefront or commercial space on the ground floor and residential living quarters on the upper floors. Strategic Location Location is a crucial factor when buying a shophouse in Cambodia. Ideally, a shophouse in a bustling commercial or the potential of an area with high foot traffic for example. If you are buying a shophouse in a borey, look at the main arterial roads or the proximity to these roads, as they will receive the most trade on completion of the project. Shophouses in areas with a mix of retail shops, restaurants, and other commercial establishments, will attract more customers to business. In Phnom Penh, popular areas where you can find shophouses are Daun Penh, Orussey and Sen Sok. Property’s History Many shophouses in Cambodia are old and historic, and it's essential to research the property's history before making a purchase. In case the property has been in existence for a long time, it is recommended to seek advice from a property consultant to find out if the building has undergone any renovations or restorations, and most importantly if it is listed as a heritage building. It is also important to consider that old shophouses generally do have only soft titles as a certificate of ownership. A soft title has the advantage of being easy to transfer, at a cheaper price and there is no need for transfer tax, however, it might not be the strongest form of title ownership. Luckily, not all shophouses in Cambodia are old. Developers have been constructing modern shophouses that are equipped with more floors and wider frontages, modern interior design and space for businesses. Generally, new projects come with hard title ownership. Regardless, of its year of construction, it is essential to verify the ownership title it holds prior to purchase. To find out more about the available offers, click here.Overall, investing in shophouses offers several advantages, with a prominent one being their potential for capital appreciation. This is driven by their mixed-use flexibility, which attracts a wide range of buyers and tenants. Shophouses are often positioned in prime locations, often near essential amenities and transportation hubs. This also presents an opportunity for rental income through their commercial spaces, further enhancing their appeal as a sought-after property investment.The process of buying and selling real estate in Cambodia can be overwhelming, especially when buying a property it is advised to conduct due diligence on the property's title and measurements. Once both parties have agreed on the negotiation terms, a Sales and Purchase Agreement (SPA) should be drafted. To ensure a smooth transfer of ownership, it is recommended to engage a real estate agent to handle the transfer of documents and liaise with the relevant ministries and with payment matters.Looking to buy shophouses in Cambodia? Tell us what you need and let us do the searching for you, for free.
rent property fast in cambodia
How To Rent My Property Fast in Cambodia | 4 Tips
August 30, 2023, 4:29 a.m.
After buying your property it is time to put it to work. Renting out a property is a popular way to increase monthly income, however, there are a few strategies to adopt in order to ensure that your property gets listed fast. In this article, we'll provide you with five effective tips to help you rent your property fast in Cambodia. In order to be able to apply the best strategy, it is preferable to put yourself in the shoes of a renter. LocationWhen it comes to renting a property, one of the most influential factors in the decision-making process for tenants is the location. The choice of where to live is tied to the daily activities of an individual's routine. Whether it's work commitments, school arrangements, or other essential errands, the location of a rental property can significantly impact a tenant's day-to-day schedule. Prior to purchasing property, it is important to emphasise your research through neighbourhoods or communities. Access to schools, markets, hospitals, public services and transportation are highly sought after because they are convenient. The second factor to consider is safety, particularly among expats who often prioritise security, especially when they are new to the country. When expats make the decision to rent a residential property, their primary concern is seeking a safe place to live. In Phnom Penh, areas like BKK1, Tonle Bassac, Tuol Kork, Daun Penh and Tuol Tum Poung are among the most secure locations in central Phnom Penh. For Cambodian nationals, location is second only to price; therefore, they seem less concerned about security compared to foreigners. Pricing Correctly Correctly pricing your property is an aspect of successful property rental. Pricing that is either too low or too high can lead to misleading expectations for property seekers. If the price is set too low, potential tenants might question the property's quality, assuming there are hidden issues or shortcomings on the other hand, an overly high price could discourage potential tenants and create an unrealistic perception of the property's value. Thorough market research, considering factors such as location, property type, amenities, and prevailing rental rates, will help you determine a competitive and accurate price point that aligns with both the property's worth and the expectations of potential tenants. For example, you might consider affordable houses like a flat house with purchase prices between $70,000 and $100,000. Buying a flat house in the suburbs of Phnom Penh will earn anywhere between $350 and $550 per month in rental returns. For renovated one and two-bedroom flat houses around central Phnom Penh, you can earn between $450 and $550 per month. In Cambodia, affordable rental properties tend to attract more tenants than expensive ones. However, if you aim to get higher rental returns, you can buy a shophouse in a prime location in central Phnom Penh such as Daun Penh, Chamkarmon, or along a major wet market where purchase prices are around $3,000-$4,000 per square meter. You can then rent this space for an average of $1,500 per month. Generally, a shophouse has a high potential for retail businesses, especially if it has corner parking spaces. If you want to target foreign nationals for more lucrative rental returns, you should consider buying a condo or high-end villa in the heart of the city for anywhere between $120-$700K. This can bring you between $1,000 - $4,000 per month in rental returns, depending on quality, location, and amenities.Appealing Pictures Whether your property is being listed online or offline, the initial impression it makes is pivotal in attracting potential tenants. This first interaction, often through images, can significantly impact the success of renting your place. To truly attract potential tenants, it is strongly recommended to showcase your property with high-quality, well-lit images. Additionally, ensuring that the space is clean and uncluttered can help potential tenants visualise themselves living in the property. For example, if it is a condo, it is advised to highlight not only the room but also the exterior amenities which the tenant can benefit from renting the property such as a swimming pool, gym, gardens or other facilities. For standalone properties like villas or Borey, the exterior is the main feature of the property. Therefore, including pictures of the exterior is a plus when it comes to attracting potential renters. Market Your PropertyWith your property's new pictures in place, the next question is: Where should you showcase your listing? Nowadays, the majority of property seekers use online platforms to find what they need. However, the key lies in selecting a platform that receives substantial traffic on a daily basis. By positioning your listing on a reputable real estate website, you ensure that your property will be seen by individuals actively seeking to rent properties. Remember, the platform you choose to market your property on significantly influences its visibility and reach. Prioritise platforms that boast a substantial user base, as this maximises the chances of your property catching the eye of potential tenants who are genuinely interested in finding their next rental home. If you are looking to rent your property fast, we make listing properties easy on our website, start now!Click Here
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How Does Rental Payment And Deposit Work in Cambodia?
August 30, 2023, 2:16 a.m.
While there isn't a strict regulatory framework in place, common practices among landlords prevail when renting property in Cambodia. This article will provide an explanation of rental payments and deposits in Cambodia, shedding light on key considerations for tenants. DepositOnce the tenant finds the ideal property to rent, the owner will move forward with a rental contract. Within this contract, details concerning the security deposit will be clearly outlined. Cambodia is no different from other countries regarding a request for a security deposit. It serves as a safeguard for landlords against potential damages or breaches of contract. The specific amount of the security deposit can vary and often depends on the landlord's discretion. Generally, for a 12-month rental contract, landlords usually require a security deposit equivalent to two months' rent. Alternatively, for a 6-month contract, a deposit equivalent to one month's rent is commonly requested. Long-term rental contracts, especially those extending beyond 12 months, are subject to further discussion. In cases of contracts spanning several years, landlords might require a higher security deposit, ranging from 5 to 6 months' rent. While negotiation of the security deposit is possible, it is usually tied to the terms of the rental agreement. Rental Payment Rental payment structures in Cambodia tend to vary based on the preferences of individual landlords. However, there are some prevailing norms that tenants are likely to encounter, and it's important to note some additional details about these payment structures. In the majority of cases, tenants are required to pay rent in advance for each month of their tenancy. The payment is usually due on a regular date, often towards the end of the current month or the early days of the new month. It's important for tenants to be aware of this schedule to ensure timely payments and a good landlord-tenant relationship. The rental bill, which outlines the amount due for the upcoming month, is typically sent either through the property management company responsible for the property or directly from the landlord. This bill not only covers the base rent but also includes utility fees such as water, electricity, and sometimes garbage collection. It is common for landlords to include utility fees in the rental payment to simplify the payment process for tenants and ensure that these essential services are consistently paid for. Amenities & Additional Costs Tenants should be aware that certain rental fees might not encompass all amenities. Additional charges, such as for wifi, cable TV, and parking, could be separate from the base rent. It's advisable to thoroughly understand what amenities are included in the rental price prior to signing the rental agreement.Early Termination of RentThe conditions for terminating a rental contract prematurely in Cambodia are not set in stone. The terms of such termination must be mutually agreed upon and documented in the rental contract before signing any contract. In some cases, if a tenant decides to terminate the contract early, the landlord may retain the deposit. In other cases, the landlord will request a one-month notice period. Rental For Commercial PropertiesThe rental dynamics for commercial properties in Cambodia are similar to residential properties. One key distinction is the concept of the fit-out period during commercial property transitions. This involves moving in at a non-charge or discounted rate, especially when significant renovations are required. Negotiations regarding fit-out periods depend on factors such as rental price, location, and market demand. Real estate agents can often play a role in facilitating negotiations between landlords and tenants.Overall, rentals in Cambodia are relatively easy and straightforward. It is important to be well-informed about the rental conditions and additional costs, so tenants can secure a rental property that aligns with their needs and budget.If you are in search of the perfect rental property in Cambodia, whether it's for your business or a home? At Realestate.com.kh, we're here to help you find the property that suits your needs and requirements.Looking to rent property in Phnom Penh, Siem Reap or Sihanoukville? Tell us what you need and let us do the searching for you, for free.Click Here
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How Does the Property Ownership Application Process Work in Cambodia?
August 28, 2023, 7:39 a.m.
When purchasing a property, a common concern for buyers revolves around the intricate nature of managing the associated legal and administrative procedures. The lengthiness and lack of clarity in the process can be especially discouraging, particularly for those who are venturing into property ownership for the first time. At Realestate.com.kh, we've simplified this process by providing a roadmap that outlines the steps following your property purchase in Cambodia.ContentSales & Purchase Agreement Collection of Documents Submit Documents to the Ministry of Land Management, Urban Planning, and ConstructionSigning Transfer Form Title Transfer Handover 1. Sales & Purchase Agreement (SPA)The process begins with the negotiation and signing of a Sales and Purchase Agreement (SPA) between the buyer and the seller. The SPA outlines the terms and conditions of the property transfer, including the purchase price, payment schedule, and any other relevant clauses that both parties have agreed upon. 2. Collection of DocumentsBoth parties need to gather and prepare a set of documents. Buyers should ensure they have their identification documents, proof of funds, and any other documentation required by the seller. Sellers should provide necessary ownership documents, property information, and title deeds.3. Submit Documents to the Ministry of Land Management, Urban Planning & ConstructionAfter the SPA is signed and the necessary documents are collected, it is time to submit the documents to the Ministry of Land Management, Urban Planning, and Construction. This step is crucial for obtaining the transfer form.4. Signing Transfer FormUpon receiving approval from the ministry, both parties sign the property transfer form. In Cambodia, both the buyer and seller need to be physically present for this matter as it requires thumbnail signatures. This form acknowledges that both parties agree to go forward with the property transaction.5. Title Transfer & Transfer TaxOnce the transfer form is submitted, the buyer and seller proceed to initiate the title transfer procedure at the District land office. It is important to note that the registration to transfer ownership can take up to 20 to 30 days to be completed. Once registered, the buyer needs to fulfil the obligatory transfer tax and registration fee payment at the Ministry of Economy and Finance (MEF) in the General Department of Taxation. This transfer tax is based on the property value and must be settled prior to finalising the title transfer. Once the transfer tax is paid, the final step is to complete registration at the Cadastral Office at the Ministry of Land Management Urban Planning and Construction (MLMUPC). This step might take up to 5 days to complete. Finally, a new certificate of title will be issued to the buyer with updated records. 6. HandoverUpon completion of the title transfer, the seller hands over the physical possession of the property to the buyer. This includes transferring keys, any other relevant property-related items and payment terms once agreed in the SPA agreement.The process of applying for property ownership in Cambodia follows a generally consistent set of procedures. To ensure a seamless transaction, it's advisable to collaborate with real estate professionals to guide you through every step. If you're currently in the market to purchase property in Cambodia, please don't hesitate to contact us!  Looking for a property in Phnom Penh? We have more than 50,000 listings on our website Click Here
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How to Own Land/Landed Property in Cambodia as a Foreigner?
August 28, 2023, 2:38 a.m.
Why is Land/Landed Property considered a Highly Desired Form of Real Estate? Landed property, often referred to simply as land, occupies higher value within real estate due to its versatile value. Its desirability comes from its capacity to serve as a tangible and enduring investment. Landed property acts as a foundational base upon which a wide array of structures can be constructed, thereby facilitating a range of commercial, residential, agricultural, and industrial ventures. Ownership of land offers the potential for significant capital appreciation depending on its location. Consequently, land stands as a symbol of security, and a lasting legacy, solidifying its reputation as a highly coveted category of real estate.Why Own Land in Cambodia? Owning land in Cambodia presents a compelling opportunity owing to the country's extensive amount of unexploited land and its strategic cities that are poised for significant development. Cambodia, strategically well located in Southeast Asia where it is surrounded by neighbouring Thailand and Vietnam, offers a unique position for investors looking to capitalise on the region's growing economic potential.The capital city of Phnom Penh stands as a vibrant economic hub with rapid urbanisation, making it an ideal location for real estate investment. It is witnessing an influx of businesses, foreign investments, and a growing urban population. This urbanisation trend presents promising prospects for landowners, as it contributes to increased demand for commercial and residential spaces, thus potentially driving land value appreciation. Sihanoukville, situated along the coastline, has transformed from a quiet coastal town into a bustling port city and developing as a tourist destination. The city's strategic location near international trade routes and its rapidly growing infrastructure make it a focal point for property development.  Siem Reap, known for its proximity to the Angkor Wat temple, has also emerged as an area of interest. The city's tourism sector has experienced consistent growth, attracting visitors yearly. This has led to increased demand for accommodation, entertainment, and related amenities, offering landowners a chance to explore the hospitality and tourism industry. How Can Foreigners Invest in Landed Property in Cambodia? Investing in landed property in Cambodia as a foreigner is subject to certain regulations and restrictions. Foreigners are generally prohibited from owning land outright in Cambodia. However, there are alternative options to consider. Investment in a Cambodian Company:Foreign investors have the option to invest in a Cambodian company, wherein they establish a company that holds land ownership and where the foreign investor becomes a shareholder. However, this method typically necessitates majority ownership by Cambodian citizens, usually involving a distribution of 51% of shares to Khmer citizens and 49% to foreign investors, making it a relatively safer approach favoured by foreign investors.Trust Services Some foreigners explore the option of setting up a trust to hold and manage their property interests in Cambodia. A trust involves transferring legal ownership to a trustee, who has the property for the benefit of the foreign investor (the beneficiary). Trusts can offer added protection and flexibility, as well as potential estate planning benefits. Long-Term Lease AgreementForeigners can acquire land through a long-term lease. The most common lease term is 50 years, and it is a one-time renewal of 99 years. The lease grants you significant control and use of the property during the lease period. Therefore, it opens doors for foreign investors to engage in various sectors, including residential, commercial, or industrial properties, within the specified leasehold period.Nominee StructureUsing a nominee structure consists of allowing Cambodian citizens to hold legal title to the property on behalf of the foreign investor. This practice can be legally complex and may involve risks. It is generally not advised to use this method as the property's legal title is held by the nominee, therefore the foreign investor lacks direct control over the property which can lead to disputes or difficulties in managing the property as intended.What Do You Need to Invest? Valid Passport and Visa: A valid passport is essential for identification purposes. Additionally, you would typically need a valid visa that permits you to stay in Cambodia for the duration necessary to complete your property investment and related transactions. Financial Resources: Adequate financial resources are necessary to fund your property investment. This includes the purchase price of the property, transaction costs (such as legal fees and taxes), and any additional costs associated with property ownership.If you are interested in learning more about landed properties in Cambodia, talk to our agents today to find out more Click Here
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How Much Does a Property Cost in Cambodia ?
July 27, 2023, 1:23 a.m.
Cambodia has emerged as a destination for property investment and ownership, providing opportunities for both local and foreign buyers. However, when considering property in Cambodia, it is essential to explore a few factors before making this decision. In this article, we will explore market trends, ownership options, location preferences, and prices to help buyers make informed decisions.What's the Property Market Like in Cambodia?The property market in Cambodia has experienced significant growth and development in recent years, especially prior to the pandemic making it an attractive destination for investors and buyers alike. With a stable economy and foreign investment, the real estate sector has flourished, witnessing a surge in demand for residential, commercial, and industrial properties. Urban centres, such as Phnom Penh and Sihanoukville, have become focal points for development, with a rising number of modern high-rise buildings. Despite the significant growth and development in Cambodia's property market, it has not been without challenges. The ban of online gambling in 2019, and the pandemic created an oversupply of properties, which has put downward pressure on prices. As a result, property prices have, in some cases, experienced a decline from their pre-pandemic levels. The current situation has created a market that is more favourable to buyers, presenting opportunities for those seeking more affordable investment options. Am I Eligible To Buy a Property in Cambodia? If you are Cambodian, you are eligible to buy a property in Cambodia. As a Cambodian citizen, you have the legal right to directly own any type of property, including land, condominiums, and landed properties. For foreigners or non-Cambodians, the property ownership regulations are slightly different. Foreigners are allowed to own condominium properties in Cambodia, but there are some restrictions. They can only own condominium units on the first floor or higher, and they are not permitted to own units on the ground floor. Additionally, foreign ownership is limited to a maximum of 70% of any building with a strata title.If you are interested in buying a condominium as a foreigner, it is essential to familiarise yourself with the specific regulations and procedures. Find helpful resources to learn more about foreign ownership in Cambodia here.Moreover, for foreigners interested in exploring opportunities in land and landed properties, there are certain limitations. Foreign individuals cannot directly hold property titles for such properties. However, foreign buyers and investors have found alternative routes to navigate the real estate market in Cambodia. Different approaches include utilising Trust Services, using a local nominee or registering a local land holding company. Through these methods, foreign investors can effectively secure a stake in the property market and invest in landed properties. If you wish to know more about these mechanisms, you can find additional information herePrefered Location To Seek Property Phnom PenhThe city of Phnom Penh serves as the capital of Cambodia and also the Kingdom's seat of government. The capital is not only the political centre but also the primary economic hub of the country. Major economic activities, including finance, education, hospitality & tourism, and technology, are primarily focused in the capital. The city has witnessed remarkable economic growth in recent years, making it an attractive hub for local and international companies, and fostering job creation for Cambodians. Phnom Penh is home to millions of Cambodians and a growing number of expatriates yearly. The city's urbanisation has been on the rise, with a significant influx of people migrating from rural areas in search of better employment and educational opportunities. It also offers a blend of cultural and historical landmarks, such as the Independence Monument, the Royal Palace, the Silver Pagoda, and the Tuol Sleng Museum, attracting visitors every year. These factors, coupled with the city's lifestyle, diverse activities and entertainment, make Phnom Penh a highly sought-after destination for property investors looking to capitalise on opportunities. Siem ReapSiem Reap is Cambodia's cultural tourism centre, located about 14 km northwest of Phnom Penh. It is home to the famous temples of Angkor Wat, attracting visitors from all over the world yearly. Prior to the pandemic, Siem Reap International Airport catered to an impressive 3.9 million passengers annually. The primary drivers of the economy in Siem Reap rely on tourism, with hotels, boutique guesthouses, and F&B establishments catering to travellers visiting the city. Siem Reap offers a laid-back Khmer country lifestyle and a green environment, which appeals to both locals and foreigners. Notably, the city's newest airport, the Angkor Siem Reap International Airport, has been completed and is scheduled for an official inauguration in October 2023. This new airport will be able to accommodate long-haul flights and more visitors, further boosting tourism in the area.SihanoukvilleSihanoukville is the provincial capital of Preah Sihanouk, located 230 km from Phnom Penh. It has seen massive development in recent years, with numerous construction projects approved between January 2017 and May 2020. Sihanoukville has attracted foreign investment, especially from Chinese investors, resulting in the construction of condominiums, casinos, hotels, and offices. However, some of these projects faced challenges, such as the ban on online gambling and the impact of the pandemic, leading to stalled buildings. The administration of Preah Sihanoukville is implementing measures to address this issue with packages to attract investors. Sihanoukville also serves as the gateway to the idyllic tropical islands off the coast of Cambodia in the Gulf of Thailand, such as Koh Rong and Koh Rong Sanloem. The city's potential to become a tourist destination is further enhanced by the addition of two new world-class hotels in 2023. Types of Properties Cambodia boasts a diverse array of property types that cater to varying lifestyles and preferences. The real estate landscape comprises Condominiums, which offer modern living in high-rise buildings with mixed-use facilities. Office buildings and commercial spaces provide ideal settings for businesses and enterprises to thrive. Villas, sought after by affluent Cambodian families, offer spacious freestanding houses with gardens, making them perfect for extended family living. Shophouses, with their ground-floor retail spaces, are popular among locals, while renovated ones add a touch of history to urban areas. Lastly, Boreys, gated communities on the city outskirts, provide Khmer families with secure and well-equipped surroundings, including diverse housing options and communal amenities. Read more in detail about the property types hereProperty Prices in CambodiaBased on Realestate.com.kh research, here are the average sale prices of condominium units and landed property in Cambodia. Condominium Rate/sqm  Low-End Medium-EndHigh-End Phnom Penh$1200-$1500/sqm$2100-$2500/sqm$3000-$3500/sqmSihanoukville $1,700/sqm$2,200/sqm$3,500/sqmSiem Reap $1,200/sqm$2,200/sqmN/A    Landed Property Rate Upscale AreaInner City Centre Outside City CentrePhnom Penh$3,000-$6,000/sqm$1,500-$2500/sqm$200-$800/sqm    Comparing Property Prices in Neighbouring CountryComparatively, Cambodia's property market offers more affordable options compared to Thailand. In Bangkok, according to the Wise website, the average sale price of condo units is as follows, with the prices converted to USD for better comparison:LocationPrice per sq.m apartment city centrePrice per sq.m apartment outside the city centreBangkok$5,465.82$2,546.68Phuket$2,970.70$1,996.36Chiang Mai$1,996.36$1,232.10 When comparing property prices between Bangkok and Phnom Penh, it's evident that Bangkok's city centre properties have a higher cost costing more than $5,400 per sqm. On the other hand, in Phnom Penh, high-end properties come at an average cost ranging from $3,000 to $3,500 USD. Overall, it can be observed that high-end properties in Phnom Penh are generally more cost-effective compared to Bangkok's city centre properties which might not be high-end properties. This price difference might attract potential investors and buyers to consider Phnom Penh as a viable option for real estate investment, especially in the luxury property segment.In conclusion, while seeking property in Cambodia, it is important to understand the current market and select the location and the property type. Overall, Cambodia presents an attractive destination for buyers seeking properties still under market value or within an affordability range. If you're a newcomer to property investment in Cambodia or eager to make an informed decision, reach out to our real estate advisor today for a consultation on the Cambodian property market. At Realestate.com.kh, we offer current insights and help customers find their dream properties every day.If you are looking for a property in Phnom Penh, Sihanoukville or Siem Reap contact us hereClick Here
Avoiding Real Estate Pitfalls: A Guide for Buying Property in Cambodia
Avoiding Real Estate Pitfalls: A Guide for Buying Property in Cambodia
July 25, 2023, 8:08 a.m.
Purchasing property in a foreign country can be an exciting investment opportunity. Cambodia, with its promising investment climate, has attracted many buyers over the years. However, some property buyers have faced unexpected challenges and pitfalls during their investments, leaving them worried about their choice. In this article, we will share some real-life case studies from readers who have encountered issues while buying property in Cambodia and offer valuable tips to help potential buyers avoid falling into the same traps.Case Studies CollectedThe Agent Suddenly "Disappears"A few years ago, Mr A, an investor, purchased an apartment in Phnom Penh through a real estate agency. Unfortunately, unforeseen circumstances such as the gambling ban and the pandemic led to the disappearance of the agent he was dealing with. This left him stranded without any means to contact either the agency or the developer. Thankfully, Realestate.com.kh stepped in and provided valuable assistance. They facilitated communication between Mr A and the developer, guiding him through all the required procedures, and ensuring a successful transfer of ownership of his property.A Deposit was Paid, But No Sign of ConstructionSimilar to Mr A, Mr L was also enticed by the promising investment opportunities in Cambodia. He decided to purchase an apartment in Phnom Penh through an agency. Unfortunately, his experience turned out to be less fortunate. Upon reviewing the project introduction article provided by Mr L, it became evident that the agency in question was not based in Cambodia and had a poor understanding of the local market. The project introduction materials were filled with inaccuracies and inconsistencies. For instance, they mentioned locations with unfamiliar names like "Sovanna Shopping Center" and "Soviet Friends Hospital" as popular landmarks. Furthermore, the article falsely claimed that the project was in close proximity to the Chinese Embassy (150 meters) and the US Embassy (600 meters), whereas in reality, the distance between these two embassies is 5.1 kilometres, making the whole project appear fraudulent.Few Years of Property OwnershipAnother reader shared their experience of purchasing a small apartment in Phnom Penh at a bargain price. However, they made the mistake of not conducting thorough inquiries initially and later found out that the property only had a leasehold for a limited number of decades. The agency involved in the transaction assured them that the developer would apply for an extension of the land lease upon its expiration, claiming it would be similar to owning the property outright.Upon conducting our investigation, it became evident that the agency's promises were merely spoken words and lacked any concrete guarantee of a lease extension. Furthermore, there is misleading information online, leading many buyers to wrongly believe that all properties in Cambodia automatically come with freehold ownership, which can be passed on to future generations. In reality, this is not the case, and buyers often end up regretting their decisions once they discover the truth.How to Avoid Being Deceived When Buying Property in CambodiaDo Not Rely on Non-Resident Middleman:An important piece of advice for prospective property buyers in Cambodia is to steer clear of relying on non-resident intermediaries. Instead, it is recommended to choose intermediaries/agencies with a physical presence in Cambodia. These on-site experts possess a deeper understanding of the local market and can provide trustworthy recommendations for reliable projects.Choose Reputable Intermediary Firms:Selecting a reputable intermediary firm is crucial to ensuring a smooth and secure transaction. Established firms often boast experienced professional teams and a wide range of cooperative projects, providing buyers with more options. Their strong market influence and reputation are indicative of their commitment to maintaining high-quality services.Verify Information from Reliable Sources:Before making any property investment decisions, conduct thorough research using reliable and reputable information channels. Avoid relying solely on information found on various property selling platforms, as they might not be backed by genuine expertise and could lack the essential details needed for a well-informed decision.Buying property in Cambodia can be a rewarding venture if approached with caution and diligence. The real-life case studies shared in this article underscore the importance of being aware of the risks involved and the need to choose reputable intermediaries for assistance. By following these essential tips and conducting due diligence, potential buyers can avoid falling victim to deceptive practices and make a wise and informed investment choice in Cambodia's thriving real estate market. If you're a newcomer to property investment in Cambodia or eager to make an informed decision, reach out to our real estate specialist today for a consultation on the Cambodian property market. At Realestate.com.kh, we offer current insights and help customers find their dream properties every day. Click here
Understanding Short-Term & Long-Term Goals in Real Estate
Understanding Short-Term & Long-Term Goals in Real Estate
July 26, 2023, 6:13 a.m.
In real estate, short-term and long-term goals refer to different timeframes and objectives that investors or property owners have for their real estate investments. In the following article, we will provide an overview of these terms and explore effective ways to utilise both short-term and long-term goals for effective results. It aims to help new property seekers in decision-making and overall strategy in the real estate market.Short-Term GoalsShort-term goals in real estate typically have a timeline of one to three years. These goals are focused on achieving relatively quick results and often involve strategies that aim for immediate returns on investment. Some common short-term goals in real estate include:Flipping Properties: Buying distressed properties, renovating them, and selling them quickly for a profit.Rental Income: Generating rental income from investment properties to cover operating expenses and yield positive cash flow.Wholesaling: Identifying and securing properties at a low price and quickly reselling them to other investors for a fee.Fix-and-Hold: Purchasing properties, making necessary repairs, and renting them out for consistent rental income.Short-term goals are generally more focused on immediate gains and can involve higher risks than long-term strategies.Long-Term GoalsLong-term goals in real estate usually span five years or more. These goals often involve a more patient and strategic approach to building wealth and achieving financial stability. Some common long-term goals in real estate include:Appreciation and Equity Building: Holding onto properties over an extended period to benefit from property value appreciation and equity accumulation.Passive Income: Acquiring rental properties to create a passive income stream for financial freedom.Portfolio Diversification: Building a diverse real estate investment portfolio to spread risks across various property types and locations.Legacy: Creating a real estate portfolio that can be passed onto future generations as part of a family legacy.Long-term goals in real estate generally involve a more stable approach to wealth building, focusing on the potential for consistent returns and financial security over an extended period.It's essential for investors and property owners to align their short-term and long-term goals before investing in real estate. A balanced combination of short-term and long-term objectives can help create a well-rounded and successful real estate investment portfolio. If you are new to the property market and looking to make a smart investment, at Realestate.com.kh, we provide accurate and up-to-date information on properties in Cambodia. Speak with our real estate agent today by clicking hereIf you are interested to see properties for investment in Phnom Penh, click belowClick Here
nominee structure cambodia real estate
Is Nominee Structure Safe in Cambodia?
July 18, 2023, 8:21 a.m.
The nominee structure was once a widely used mechanism by foreign investors in Cambodia's business and property sectors, but as Cambodia is turning into a more structured legal framework, it is not the case anymore. This article aims to shed light on what the nominee structure entails, the advantages and drawbacks associated with its usage, and explore alternative options available in Cambodia.What Is a Nominee Structure? A nominee structure refers to a legal arrangement in which a person or entity (the nominee) holds assets, shares, or other rights on behalf of another individual or entity (the beneficial owner). In Cambodia, the nominee structure is often used to own landed properties. While it can present several advantages, such as anonymity, asset protection, and ease of asset transfer. It is crucial to highlight the significant disadvantages associated with this arrangement, particularly the potential deterioration of the relationship between the nominee and the beneficial owner. By entrusting assets to a nominee, the beneficial owner inherently surrenders a level of control. The nominee, who holds legal ownership, may not always act in the best interest of the beneficial owner, increasing the likelihood of misuse, mismanagement, or conflicts of interest. This breakdown in the relationship can have far-reaching consequences, including financial losses, disputes, and reputational damage. In addition, while the nominee structure may offer benefits, it can also present legal and regulatory risks. Authorities may view the use of nominees as a means of evading taxes, or disguising illicit activities leading to potential legal consequences. In conclusion, it is essential to carefully evaluate the potential risks before opting for a nominee structure, considering alternative options that offer greater control and transparency.Alternatives to Nominee StructureTrust ServicesTrusts provide a legal framework where a trustee holds assets on behalf of beneficiaries. Trusts can offer similar benefits to the nominee structure, such as privacy and asset protection, while ensuring a higher level of control and legal compliance. In Cambodia, trust services enable foreigners to own and transact properties. Trust services act as representatives, oversee the property and charge a management fee on behalf of the foreign buyer. Land Holding Company Foreigners can own property in Cambodia by establishing a locally registered company with a minimum joint share of 51% for local shareholders and 49% for foreign shareholders. The land holding company can then purchase or transact properties under its registered company’s title enabling foreigners to have ownership while adhering to local requirements. Leasing AgreementA leasehold agreement, on the other hand, involves the purchase of the right to occupy a property for a fixed period, as stipulated in a lease agreement with the landowner or the developer. In this scenario, the land on which the real estate stands is owned by another party, such as a developer or landowner. The leasehold period can vary widely, in Cambodia, leasehold ownership is a common arrangement, with a typical lease term of 50 years and the option for a one-time renewal of 99 years.  In conclusion, the safety of using a nominee structure in Cambodia requires careful consideration. Over the years, the use of nominee structures has not always been favoured by foreign investors looking to purchase landed property. However, it is worth noting that alternative options are available for foreign investors seeking to own landed property in Cambodia. Foreign investors interested in landed properties are advised to seek professional guidance from real estate experts at Realestate.com.kh. We provide accurate and up-to-date information daily on the property market in Cambodia. If you are interested to learn more in detail about the ownership structure in Cambodia, our real estate agents are ready to assist you. Contact us today. Free Consultation Here
Understanding Strata Title Process in Cambodia
Understanding Strata Title Process in Cambodia
July 11, 2023, 4:36 a.m.
The process of obtaining strata titles in Cambodia is essential for property developers and buyers seeking individual ownership of units within a multi-unit development. Strata title ownership allows individuals to own their private units while sharing ownership of common areas and facilities with other unit owners. In this article, we will delve into the steps involved in creating a strata title and the crucial aspects of the transfer process in Cambodia.Steps to Creating a Strata TitleThe process begins with the developer acquiring the land where the development will occur, holding a hard title in the development company's name. However, this master title does not permit the direct transfer of private unit ownership to individual buyers. Instead, the developer must transfer the total collection of split titles into their name and ownership. For instance, if there are 20 units in development, there must be 20 separate titles created from the original hard title. The Ministry's land department will review the common areas' regulations and practices at this stage to ensure proper management and insurance. Only after the land department is satisfied will they issue the strata titles. Once the individual titles have been created and transferred to the company's ownership, the developer can transfer them to individual buyers.Transfer of Strata Title to the End Buyer and OwnerThe Ministry of Land Management, Urban Planning, and Construction (MLMUPC) requires fully certified documentation of the identity and marital status of the end buyer. These documents must also be translated into Khmer since the strata title is exclusively in Khmer, and English names are not permitted. Different processes and documentation are applicable to Khmer buyers, foreign buyers, and the development company. To ensure a smooth transfer process, many developers engage the services of legal firms to review the certified documents, liaise with the land department, and provide legal assistance to buyers throughout the process. Physical Presence in Cambodia for Title TransferOne essential requirement for the strata title transfer is the physical presence of the buyers in Cambodia. They must personally affix their thumbprint on the certified documentation, including the Vente Definitive and the Application for Ownership Transfer. These documents are standard templates provided by the land department. For international investors, this means they have to return to Cambodia to complete the title transfer.Accrued Costs during the Transfer ProcessSeveral costs are associated with the strata title transfer process. The conversion of the master title incurs a public service fee per strata title. Additionally, there is a public service fee for issuing each individual strata title in the buyer's name. As for the transfer tax, the land department will review and accept the certified documentation, after which it will be submitted, along with other forms to the General Department of Taxation. The tax officials will assess the property value based on predetermined ranges and calculation methods, issuing an invoice for the transfer tax amount. Upon payment of the tax by the buyer, the land department will complete the title transfer.Importance of Strata Title TransferBuyers who refuse to proceed with the strata title transfer may encounter problems when reselling the property. Potential buyers may be hesitant to proceed with a purchase if they are unable to ascertain whether there are any disputes, mortgages, judgments, or unpaid taxes associated with the property. While some developers might agree to hold the title for buyers, this arrangement can lead to later complications and is generally not advised. To ensure a smooth transfer and avoid such issues, it is recommended that buyers enlist the assistance of a reputable legal firm experienced in strata title processes, ensuring constant communication with the developer and seeking proper education on the process.If you are looking for guidance from a real estate expert in Cambodia, feel free to get in touch today Free Consultation Here
What Are the Associated Costs of Owning a Property in Cambodia?
What Are the Associated Costs of Owning a Property in Cambodia?
July 12, 2023, 10:15 a.m.
When considering the purchase of a property, it's important to be aware that buying property involves more than just the base price. There are associated costs that should be taken into consideration. In this article, we will provide information on the expenses you may encounter when purchasing a property in Cambodia. By being well-informed about these costs, you can make informed decisions and ensure a smooth experience in your property purchase. 1. Hard Title Transfer A hard title is an ownership certificate issued by the Cadastral office. It is the most secure form of ownership and is recognised at the national ministerial level as well as at the Sangkat and district levels. Hardtitle transfer is a one-time payment and would typically cost between $1500 to $1800. To complete the process for transferring land titles of ownership here's a concise overview of the process:Step 1: Verify the title certificate with the Land Office at the Ministry of Land Management, Urban Planning & Construction,  (MLMUPC) to check for any debts or claims on the property.Step 2: Obtain information on the property from the relevant Commune Council Official and conduct an official search of the title at the Khan/District Land Office.Step 3: Obtain the necessary documents from the seller, such as ID copies, Certificate of Incorporation, and other official documents if the seller is a legal entity.Step 4: Apply for registration at the District Land Office at MLMUPC, and prepare and sign the relevant documents with the seller.Step 5: Pay the transfer tax, which is approximately 4% of the property's value, at the General Department of Taxation.Step 6: Return to the cadastral office at the District Land Office of MLMUPC, sign/thumbprint an MLMUPC form, witnessed by a local authority, and provide necessary documentation, including payment receipts of the transfer tax.Step 7: Obtain the certificate of title from the Municipal Land Office, where the final Certificate of Title is issued in the new owner's name, completing the registration process.If you are looking for more details about Hard Title Transfer in Cambodia click here2. Stamp Duty Tax Stamp Duty, also referred to as registration tax or transfer tax, is a tax levied at a rate of 4% on the transfer of ownership for immovable property. It is calculated based on the government rate at the tax department. Typically, the buyer is responsible for paying the stamp duty tax, although it can be subject to negotiation based on the contractual agreement between the parties involved. However, there are a few exemptions to this tax. Properties transferred or acquired by direct kin are not subject to this taxation. This tax must be paid by the taxpayers within three months of the property transfer. To boost the real estate market, the government has extended the Stamp Tax exemption for properties under $70,000 until the end of 2023.The calculation of the property transfer tax is the following: Let's assume the tax base, which represents the value of the property being transferred, is $100,000.Property transfer tax = (tax base * 4%) Property transfer tax = ($100,000 * 4%) Property transfer tax = $4000So, in this example, the property transfer tax would amount to $4000.Please note that this is a simplified example, It's advisable for real estate professionals with up-to-date information, to contact our agents here3. Annual Property Tax All immovable property in Cambodia needs to be paid with annual tax usually before the end of September every year. Immovable property includes plots of land, infrastructure on land, and buildings. It only applies to properties with a value of $25,000 and above. According to the Prakas of the Ministry of Economy and Finance, the property tax is collected annually at a rate of 0.1% of the value of the property. To calculate the amount of property tax that needs to be paid, a simple calculation can be paid based on the following formula: To calculate the Property Tax, we can use the following formula: Property Tax = (80% * tax base - $25,000) * 0.1%For instance, if the tax base is $100,000, the formula will beProperty Tax = (80% * $100,000 - $25,000) * 0.1%Property Tax = ($80,000 - $25,000) * 0.1%Property Tax = $55,000 * 0.1% Property Tax = $55Note*: The tax is applicable to Cambodian and foreign nationals who own property in Cambodia. A government valuation obtains the property’s value. It is based on several factors such as data collection, quality and location.  4. Property Management Fee  This fee will vary between Borey and condos/apartments. Those ongoing costs are usually paid monthly to support daily living including maintenance fees, repair costs, and bills such as internet, electricity, and water. Usually for Borey homes, the maintenance fee includes security guards and public lights in the project area. However, it varies depending on the project and developer. It will be charged between $0.15 - $0.5/ square metre based on land size. For a condo, the fee ranges from $0.50 to $2 per square metre. In addition, some condos offer parking space which will be required you to pay if it will be used. Price can range from $50 to $60 per month. 5. Utility FeeWhen purchasing a property, it's essential to consider the associated costs, which go beyond the purchase price. One crucial factor to keep in mind is the utility bill. As a property owner, you will typically be responsible for paying utility expenses such as electricity, water, gas, waste management, and internet/cable services. The amount you spend on utilities will depend on various factors, including the size of your property, the number of occupants, and your usage patterns. A common rate for electricity is $0.25/KwH and $0.35/cbm for water. It's important to inquire about average utility costs for similar properties in the area to understand what to expect. However, if the buyer decides to rent out the property, it's worth noting that the tenant will generally take charge of these utility fees. Including clear guidelines in the rental agreement is crucial, ensuring which utilities the tenant is responsible for and outlining any restrictions or limitations.In conclusion, it's crucial to consider that there may be additional costs associated with property transactions, such as legal fees, real estate agent's fees, loans or other administrative expenses. These costs should be taken into account when budgeting for a property purchase. If you are new to Cambodia's property costing and others, speak to our real estate expert today. At Realestate.com.kh, we provide free viewing and consultation with accurate and latest information when it comes to properties tailored to your needs. Contact us today to learn more  If you are interested to see properties in Cambodia, our real estate agents are ready to assist you. Contact us today. Click Here
What is Freehold and Leasehold Ownership in Cambodia?
What is Freehold and Leasehold Ownership in Cambodia?
July 12, 2023, 7:49 a.m.
When considering the purchase of a property, it is essential to understand the different types of ownership structures available. The two primary forms of flat ownership are freehold and leasehold. This article aims to define and shed light on the distinctions between these two ownership models in Cambodia, allowing prospective buyers to make informed decisions.Freehold Ownership Freehold ownership refers to absolute ownership of a property, including the land on which it is situated. Acquiring a property that one can own indefinitely, with the freedom to possess it for as long as desired, is a goal for many individuals. In Cambodia, this aspiration can be achieved through the acquisition of a property with a "Hard Title." Considered the most superior form of ownership, a Hard Title proves the ultimate status of ownership of the property. Recognised on a national level, Hard Titles are issued by the Ministry of Land Management, Urban Planning, and Construction, ensuring their legal validity. Each Hard Title certification is stored in the national land database, providing an additional layer of security, as it cannot be revoked or taken away by anyone. Furthermore, foreign individuals have the opportunity to own properties with Hard Titles, with their equivalent through strata title when purchasing a condominium allowing them to invest in Cambodian real estate with confidence and long-term stability.Leasehold Ownership Leasehold ownership, on the other hand, involves the purchase of the right to occupy a property for a fixed period, as stipulated in a lease agreement with the landowner or the developer. In this scenario, the land on which the real estate stands is owned by another party, such as a developer or landowner. The leasehold period can vary widely, ranging from a few decades to several centuries, depending on the terms of the lease. In Cambodia, leasehold ownership is a common arrangement, with a typical lease term of 50 years and the option for a one-time renewal of 99 years. The Cambodian government grants leasehold rights to specific companies or entities for the purpose of investment or development. During the lease period, the leaseholder has exclusive possession and usage rights over the land and any premises built on it. However, it is important to note that at the end of the lease term, the government retains the right to reclaim the land and any structures on it.Leasehold ownership in Cambodia also allows for foreign ownership, enabling individuals from outside the country to participate in the real estate market. It opens doors for foreign investors to engage in various sectors, including residential, commercial, or industrial properties, within the specified leasehold period.It is advisable for those considering leasehold ownership in Cambodia to consult legal professionals and thoroughly understand the terms and conditions of the lease agreement, including any potential obligations, restrictions, and renewal options. By doing so, investors can make informed decisions and navigate the leasehold process with confidence. To provide a comprehensive comparison between freehold and leasehold ownership in the context of condominiums in Cambodia, the following chart outlines the key distinctions and features of each ownership type:Ownership Type Freehold OwnershipLeasehold OwnershipDefinitionAbsolute ownership of the property and landPurchase of the right to occupy for a fixed periodLand OwnershipIncludes ownership of the landLand ownership retained by another partyDurationIndefiniteFixed period, typically 50 years with a renewal option  Renewal/ExtensionN/ARenewal or extension is possible depending on lease terms and a one-time renewal of 99 years.Ownership RightsFull rights to use, modify, and sell the property and share in decision-making forExclusive possession rights during the lease period. Compliance with lease terms, including payment of rent and adherence to lease conditionsForeign OwnershipPermitted for individual strata title basisForeign ownership allowed within the leasehold period for investments and developmentProsPermanent ownership, control, and flexibilityOpportunity for investment without full ownership. ConsHigher initial investment and potential risksLimited control over the property and land. The eventual return of property at lease expiration. ConclusionIn the context of Cambodia, both freehold and leasehold ownership options are available for foreigners. The Cambodian Law allows foreigners to own condominiums on an individual strata title basis, granting them freehold ownership rights. This means that foreign buyers can acquire absolute ownership of the unit, as well as a proportional share of the common areas and facilities. Freehold ownership provides foreign investors with a sense of security and controls over their property investment.On the other hand, leasehold ownership is also prevalent in Cambodia, especially in cases where the land is owned by Cambodian individuals or entities. In leasehold arrangements, foreign buyers can enter into long-term lease agreements, typically for durations of 50 years or more, with the landowner or developer. During the lease period, the foreign buyer has exclusive possession and usage rights of the real estate. Leasehold ownership can be an attractive option for those seeking to invest in Cambodian real estate but may prefer not to pursue the freehold ownership route.It is essential for potential buyers in Cambodia to carefully review and understand the terms and conditions of both freehold and leasehold ownership options. Seeking professional advice and conducting is highly recommended to ensure compliance with Cambodian laws and regulations governing property ownership.  If you are interested to learn more in detail about the ownership structure in Cambodia, our real estate agents are ready to assist you. Contact us today. Click Here
Satellite Cities in Phnom Penh
Satellite Cities in Phnom Penh
July 17, 2023, 9:21 a.m.
Urbanisation has been an ongoing global trend, with more and more people moving to cities in search of better job opportunities, improved amenities, and a higher standard of living. However, this rapid influx of people into major cities has resulted in overcrowding, increased traffic congestion, and a strain on resources and infrastructure. Phnom Penh is no exception to this problem. According to the Ministry of Land Management, Urban Planning, and Construction, Cambodia’s urban population is to reach 7.92M by 2030. Therefore to counter these challenges, satellite cities have emerged as a strategic solution to decongest larger cities. In Phnom Penh, satellite cities are gradually playing a crucial role in managing urban growth and creating sustainable living spaces. In this article, we will delve into further details regarding the benefits it offers.What Is a Satellite City?A satellite city, also known as a commuter city, is a self-contained urban area located near a larger city. These cities are designed to accommodate residents who work in the city but choose to live in a less crowded and more affordable environment. The concept originated in the early 20th century as a response to overcrowding and housing shortages in major cities.One of the primary goals of satellite cities is to reduce the strain on urban infrastructure, including transportation systems, housing, and public services. By providing an alternative residential option for city workers, satellite cities help distribute the population more evenly and alleviate the burden on the main city's resources. This decentralised approach to urban planning also promotes regional development and economic growth outside the major city.The main difference between a smart city and a satellite city is that a smart city is a technologically advanced city, while a satellite city is a smaller urban area located close to a large city centre.Satellite City in Phnom PenhIn Phnom Penh, satellite cities like Koh Pich, Koh Norea, and Chroy Changvar become popular choices for commuters due to their proximity to the capital and newly built transportation links. These areas offer a more relaxed pace of life, affordable housing costs, and access to green spaces, making them attractive options for those seeking a balance between work and quality of life.Satellite cities also contribute to reducing traffic congestion and improving transportation networks. Many satellite cities are well-connected to the main city through roads, making commuting easier and more efficient. This reduces the number of vehicles entering the city centre, thus alleviating traffic congestion. Moreover, improved transport connectivity between satellite cities and cities can enhance accessibility for residents, making it easier for them to access employment, education, healthcare, and other services.Furthermore, satellite cities often offer a range of amenities and services that cater to the needs of residents. These include schools, shopping centres, recreational facilities, and healthcare facilities. By providing such amenities locally, satellite cities reduce the dependence of residents on the main city for everyday services, resulting in a more balanced distribution of resources. Chroy Changvar is a good example where, within 10-minute drive popular destinations such as Makro (goods wholesaler), Sokha Hotel (5-star hotel), and Safari World (first waterpark and zoo in Phnom Penh). In addition, schools dot the area as well with plenty of elementary, secondary, and tertiary educational institutions nearby such as Chea Sim Middle School, Norton University, and the Cambodia University of Technology.While satellite cities have proven to be effective in decongesting larger cities, it is essential to ensure sustainable development and avoid the creation of isolated dormitory cities. Adequate planning and infrastructure investment are necessary to create vibrant and self-sufficient communities. If satellite cities have been carefully planned they will encompass their own economic catalysts, including job prospects, social infrastructure, and lifestyle amenities.In conclusion, satellite cities play a vital role in decongesting larger cities by offering an alternative residential option for commuters. These cities have successfully managed urban growth, reduced traffic congestion, and improved the quality of life for residents. By distributing the population and resources more evenly, satellite cities promote regional development and create sustainable living spaces. However, careful planning and investment are essential to ensure these cities evolve into vibrant and self-sufficient communities that offer a high quality of life for their residents. Ready to see new development projects in Cambodia? Find out the latest on our website by clicking here Click Here
Before Buying a Property in Cambodia, Verify Two Main Licences
Before Buying a Property in Cambodia, Verify Two Main Licences
June 14, 2023, 7:40 a.m.
Before investing in real estate in Cambodia, it is crucial to ensure that the developers have obtained the necessary licences to legally build and sell the property. In Cambodia, two key documents should be requested from developers to validate their compliance with regulations: the Construction Licence and the Sales Licence. This article will shed light on the significance of these licences and their importance in safeguarding your investment.The Construction LicenceThe Construction Licence serves as evidence that developers have been granted legal permission to construct a property. It is essential to verify this licence to ensure that the developers have fulfilled all the necessary requirements set forth by the relevant ministries and governing bodies. By possessing a Construction Licence, developers demonstrate their adherence to safety standards, environmental regulations, and building codes.The Sales LicenceIn addition to the Construction Licence, the Sales Licence is equally crucial in the property purchasing process. This licence grants developers the legal authority to sell properties to prospective buyers. It is vital to ascertain the possession of a valid Sales Licence to ensure that the developers have undergone the necessary procedures and obtained official approval to market and sell the property.Separate Issuing AuthoritiesIt is worth noting that the Construction Licence and the Sales Licence are issued by separate ministries and governing bodies. This distinction is an important factor to consider, as it is not uncommon for developers to possess one licence without the other. While developers may hold a Construction Licence, indicating their competence in building properties, they may not possess a Sales Licence, meaning they are not legally authorised to sell the property.The Implications of Unlicensed DevelopersFailure to verify the licences of developers can lead to potential legal and financial repercussions. Investing in a property without the necessary licences exposes buyers to risks such as legal disputes, construction defects, or even the possibility of the property being deemed illegal and subject to demolition by the authorities. Therefore, thorough due diligence is vital to protect your investment and ensure a secure and lawful property transaction.Find Reliable DevelopersWhen house-hunting, it is crucial to find reliable developers with a proven track record of successful projects. By considering a developer's past projects, potential homebuyers can gain valuable insight into their commitment and ability to complete projects. A prime example of such reliability can be seen in the Japanese developer behind J Tower Condo. This developer has successfully completed and sold two previous projects, J Tower 1 and J Tower 2, in Phnom Penh within just a few months. If you are looking to find more reliable properties in Cambodia, click here to explore our selection of trusted developers.Click Here
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Sales and Purchase Process in Cambodia
June 13, 2023, 4:42 a.m.
If you are considering buying or selling real estate in Cambodia, it's essential to understand the sales and purchase process. This article will provide a clear and direct overview of the steps involved.Due DiligenceThe first step is to conduct a thorough investigation of the property. This includes a title search to ensure there are no boundary issues and to verify the accuracy of measurements. It is crucial to confirm that the property is free from any legal disputes or encumbrances.NegotiationOnce you have completed your due diligence and are satisfied with the property, it's time to negotiate the terms with the owner. This includes discussing the price, payment terms, and any additional conditions or requirements.Sales and Purchase AgreementOnce both parties have reached an agreement, the next step is to prepare and sign a sale and purchase agreement. This legally binding document outlines the terms and conditions of the transaction, including both parties as the buyer and seller, a description of the immovable property, the sale/purchase price, payment of the sale/purchase price, registration of ownership and the handover details. Transfer Document and Stamp Duty After signing the agreement, you need to submit the necessary transfer documents to the Cadastral office. These documents typically include the sale and purchase agreement, identification documents of the parties involved, and any other relevant paperwork. Additionally, you will be required to pay the stamp duty tax of 4%, which is a percentage of the property's value. Currently, the stamp duty tax is exempted for properties below $70,000 until the end of 2023.Transfer ProcessingThe Cadastral office will review the transfer documents, and if everything is in order, they will be forwarded to the Land Department for further processing. This step involves transferring the property's ownership from the seller to the buyer officially.Confirmatory Due DiligenceOnce the transfer is complete, it is advisable to conduct confirmatory due diligence. This step involves double-checking that the property has been accurately transferred and ensuring there are no spelling mistakes or errors in the information provided. This helps to avoid any potential future disputes or complications.By following these steps, you can navigate the sales and purchase process in Cambodia smoothly and ensure a successful transaction. Remember to consult with reliable real estate agents familiar with local laws and regulations to ensure compliance and protect your interests.If you are seeking more guidance on real estate in Cambodia, feel free to consult our guides here Click Here
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What Is An Off-Plan Property in Cambodia?
August 30, 2023, 6:50 a.m.
Are you looking to invest in real estate but unsure where to start? You might have heard of off-plan properties or new development projects. In this article, Realestate.com.kh will provide a comprehensive overview of an off-plan investment, its benefits and risks and finally where to find reliable projects.What Is An Off-Plan Property?An off-plan property refers to real estate that is sold before construction has begun, or while construction is still in progress. The concept of off-plan property is based on the idea that buyers can secure a property at a lower price than if they were to wait until it is completed. Off-plan purchases are popular with investors and homebuyers alike and Cambodia is no exception. Benefits of An Off-Plan PropertyThe benefit of the off-plan property for investors and home buyers is that purchases can benefit from capital appreciation. As the property is being built, its value may increase, providing the buyer with an opportunity to make a profit if they choose to sell before completion. This is particularly true in areas where property prices are rising rapidly, and in areas where there is a high demand for new housing. In addition, early buyers of off-plan projects have the opportunity to customise their property to their liking. This can include selecting finishes, fixtures, and appliances, and making changes to the layout and design of the property. Risks Of An Off-Plan PropertyDespite its many advantages, the off-plan property does come with some risks. For example, there is always the possibility that the development may be delayed or even cancelled, leaving buyers with a property that they cannot occupy or sell. Additionally, upon completion, the unit may not resemble the show unit or plans that compelled you to buy the property. It is always advised to do your research and work with a local property advisor to help you navigate the property market. Ensuring you buy from a trusted developer with a track record, is highly recommended. It is preferable to have pre-agreements with the developer prior to signing your Sales and Purchase Agreement (SPA), Typically buyers will have 20 days between booking the unit and signing the SPA, and you should always consult with your local property advisor when reviewing property purchase-related agreements. Additionally, we recommend considering seeking legal advice. To read more in detail about the process of buying off-plan property click here. In conclusion, the off-plan property can be a great investment opportunity for those willing to benefit from:Low prices,Customisation optionsPotential capital appreciation. If you are interested in exploring off-plan properties available in Cambodia. You may visit realestate.com.kh, which collaborates with all the licensed developers operating in the market to find reliable projects. If you are looking to find a reliable project in Cambodia, we make it easy for you  Click Here
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An Overview of Cambodia's Golden Visa
April 19, 2023, 7:15 a.m.
As the cost of living and healthcare continue to rise in many parts of the world, more people are considering ways to secure their retirement plans.Whether you are seeking to achieve the FIRE (Financial Independence, Retire Early) movement or reaching your golden age, Cambodia might be your next destination to spend your post-work life.In this article, Realestate.com.kh will share a definitive guide on the ways to secure your future and invest in property in Cambodia through a Golden Visa.  What is a Golden Visa?A "Golden Visa" is a type of visa that allows individuals to live and work in a foreign country for a set period of time, usually between one and ten years.Golden Visas are typically offered to individuals who make a significant investment in the country, such as by buying property or starting a business. In Cambodia, a government-approved program provides a renewable 10-year visa that allows for unrestricted entry and exit to and from Cambodia. How a Golden Visa Can HelpThe visa program in Cambodia offers a pathway to residency for investors who meet certain criteria, such as investing at least $100,000 to be eligible and owning a government-approved Cambodian real estate project. Once you obtain a Golden Visa, you can live and work in Cambodia for up to 10 years, making it easy to manage your investments and secure your future.In addition to providing a pathway to residency, a Golden Visa can also offer other benefits, Holders can apply without any additional costs. Eligible for Cambodian citizenship after five years.Professional assistance for company incorporation, bank account, trust account,Cambodian Driver’s LicenceOne year of free medical insurance in CambodiaFree VIP Access at the Cambodian AirportsAccess to Khmer Home Charity Association (KHCA) and Ministry of the Interior (MOI) networking activities and events.Additionally, a Golden Visa can make it easier to travel in and out of Cambodia, as it eliminates the need for a visa on arrival. Investing in Property in CambodiaInvesting in property in Cambodia has become increasingly popular over the past few years due to the country's growing economy, and the GDP growth rate has consistently remained above 7%. Furthermore, the Cambodian government has put in place measures to foster foreign investment, such as loosening limitations on property possession for non-Cambodian individuals. This includes authorising complete foreign ownership through strata title, which permits foreign ownership in jointly owned buildings.Rental demand in Cambodia is one of the highest in the region, particularly in urban areas like Phnom Penh and Siem Reap, creating an opportunity for passive income. Finally, the country's growing tourism industry and urbanisation provide the potential for long-term capital appreciation. All of these factors make Cambodia a compelling destination for property investors looking for potentially high returns and growth opportunities. Discover all the latest information on the real estate market by checking out our Cambodia Real Estate Survey 2023 here.    Why Cambodia?Cambodia is an attractive destination for retirees for many reasons. Located in Southeast Asia and known for its rich history, stunning natural beauty, and welcoming culture, it has emerged as a popular destination for those seeking an affordable and comfortable lifestyle.It offers a diverse landscape for everyone, whether you're seeking a peaceful town like Kampot, a mesmerising destination like Siem Reap, the serene beaches of Koh Rong, or the vibrant city life of Phnom Penh.The cost of living in Cambodia is relatively low compared to many other countries in Southeast Asia, which means that retirees can stretch their retirement savings further. Basic necessities such as food, accommodation, and transportation are affordable, particularly in rural areas.In urban centres like Phnom Penh and Siem Reap, it can be higher due to the demand for tourism and expat services, but still comparatively cheaper than in Western countries. The local currency, Cambodian Riel, is the primary means of payment, but US dollars are widely accepted in many areas. The cost of living in Cambodia can vary depending on one's lifestyle and location.  Overall, it is possible to live comfortably in Cambodia on a modest budget, but it is important to do thorough research on living expenses before making any long-term plans. Retiring abroad can be an exciting and rewarding way to secure your future and invest in property. With its welcoming culture, affordable cost of living, and stunning natural beauty, Cambodia is an ideal destination for retirees seeking a comfortable and fulfilling lifestyle. And with the Golden Visa program, it is easier than ever to invest in property and secure your future in this beautiful country.   Looking for the best property in Cambodia? Click here! Article by: