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Buying a condo in Cambodia – what you need to know
While there are many ways to acquire land or real estate as foreigners in Cambodia, condominiums are often the preferred way to own property. The acquisition of a condo in Cambodia will only be possible if the title deed is the right one, i.e. a strata title.
These property titles were introduced in 2009 in order to attract foreign investors and to respond to the increase in the existing expatriate population.
What are the conditions for obtaining a Strata?
Strata titles must meet main 4 conditions:
- Strata titles only apply to buildings constructed in 2010 or later.
- Foreigners can only own up to 70% of the floor area.
- Strata Titles cannot be issued to ground floor units.
- Strata Titles cannot be issued to any property within 30km of the nearest land border.
With that said, let’s take a closer look at how to get one of these titles transferred into your name and what you need to know.
What documents are required from the buyer?
The Ministry of Land Management requires both the marital status and identity documents to be certified and translated into Khmer. It is important to note that Strata Titles are only delivered in Khmer language, meaning that the buyer must also translate his/her name into Khmer. All the different parties must provide slightly different documents for the acquisition to occur.
What are the costs involved during a Strata Title transfer process?
A public fee and a service fee apply to each Strata Title. Those fees must be paid to the General Department of Taxation (GDT). After the required documents have been submitted to the relevant authorities, the GDT will issue an invoice specifying the transfer tax that has to be paid. This tax represents 4% of the property value which is appraised by the cadastral authorities. The title transfer can then be completed after issuance of the evidence that the transfer tax has been paid.
How can I be sure that the project has obtained a legitimate Strata Title?
The Ministry of Land Management is the sole authority that has the right to register a Strata Title. Therefore, it is strongly recommended to verify the legitimacy of the land developper’s Hard Title with the Ministry. The documents that constitute the registration of the development project provide key information about the title classification. Upon verification of the ownership of the Hard Title, it is also advised to check its eligibility to be divided into Strata Titles.
Do I need to be in Cambodia for the Strata Title to be transferred under my name?
The buyer must be present in Cambodia as fingerprints are required on the certified documentation, the sales agreement and the application of ownership transfer.
In conclusion
While Cambodia is becoming a major tourist destination, the new Asian tiger is also increasingly seen as a business hotspot and an expat haven. The country’s economy is thriving and developing rapidly, which is evident in everything from FinTech to healthcare, education and even agriculture. In addition, the government now offers a 10-year golden visa with great benefits for foreign investors, such as a 5-year path to citizenship.
Investing in Cambodia today could be a strategic decision for those looking to take advantage of its exponential growth, and condos are a safe and easy way to do so. While Phnom Penh offers countless buying opportunities, finding the right fit, ensuring you are buying from a genuine source and obtaining all the necessary documentation requires careful planning and monitoring.
Our real estate lawyers at Belaws have extensive experience in assisting foreigners purchasing a condominium in Cambodia through Strata Titles. If purchasing real estate in Cambodia is something that you wish, please book a consultation with one of our experts.
Please note that this article is for information purposes only and does not constitute legal advice.
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