To What Extent Can Foreigners Acquire Ownership of Co-owned Property?

• 15 October 2020
• Local News
• 5585 Views

To facilitate the business environment and foreign investment in Cambodia, especially in the construction and real estate sectors, the Cambodian government has established law regarding foreign ownership of co-owned buildings.

To what extent can foreigners acquire ownership of co-owned buildings?

Co-owned building refers to building or construction in which several co-owners live, such as condominiums, attached houses, detached buildings, semi-detached buildings, and other kinds of houses with shared structure.

A co-owned building has some parts that are the exclusive ownership of each co-owner called a “private unit.” Other parts are used together by the co-owners, which are called “common area.”

Given these different types of ownership, restrictions, and regulations regarding the rights to occupy are necessary, especially for foreigners.

Legally qualified foreigners can own, buy, or sell the private units of co-owned buildings. They also have the right to use the common areas but under the rules and regulations of that co-owned building.

However, foreigners are not allowed to own the ground floor unit. In other words, they can own only from the first floor upward.

Foreigners are also not allowed to own the land plot at which the co-owned building is located.

Most importantly, foreigners cannot own any co-owned buildings located within 30km from any land border and some other areas designated by the government.

There are also some exemptions. In some conditions, foreigners can acquire ownership of co-owned buildings, which are located in a special economic zone and other areas allowed by the government.

Regardless, for rent, foreigners can permanently lease the private units of co-owned buildings, the same as other Cambodian citizens from third parties.

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