1. Foreigners can own land deeds
Foreigners can buy properties overseas as real estate buyers buying strata titles in condominium units directly in their own name. However, there is no strata title to land and shophouse apartments. New condo developments are widely considered expensive. Sites with development potential are particularly attractive to active investors. However, the situation is further complicated by the fact that foreigners cannot directly own anything other than condominium units. Either set up a Cambodian land holding business or a nominee arrangement with Cambodians, enforced by many different types of contracts. A land holding company is legally safer, but it must pay annual permit fees and pay monthly taxes. If you are buying Cambodian property on a large scale, the extra labor and expenses are worth it.
2. Property Tax in Cambodia
Property tax is 0.1% of the market value of property over 100,000,000 Khmer Riel (approximately $25,000) per year. There is no doubt that annual taxes in Cambodia are extremely low and often non-existent. Residents pay 10 percent income tax on rentals. Rental income of non-residents is taxed at 14%. Each year, undeveloped land is taxed at a rate of 2% of its market value. Therefore, it is impossible to "land bank" in Cambodia without paying high taxes. Land purchases should be developed as quickly as possible and used to generate income. On the other hand, locals will tell you that most of them are not even registered with the tax system. Therefore, Cambodia does not strictly enforce these taxes. That's not to say you shouldn't pay them, it's nothing more than a statement of fact and some knowledge of local customs.
3. Safely buy real estate in Cambodia
If done correctly, the foreigner will own freehold and have full power over the property. Especially for soft title homes, check the property you are buying for any other claims. While uncommon, it's not unheard of for people to sell mortgaged or otherwise questioned homes. This can easily be avoided with adequate investigation. It is also worth noting that foreigners cannot legally hold soft or hard titles in their own name. If you don't want to incorporate and build a real estate holding business, your only option is to choose a local agent to hold the property for you and tie 海外置業him or her to multiple contracts. This will require the assistance of a lawyer.