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Popular investment opportunities in Cambodia for foreign buyers
Popular investment opportunities in Cambodia for foreign buyers
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
Favourable foreign ownership laws, a U.S Dollar based economy, rental returns of up to 10% per year, and high yields are just a few reasons why Cambodia is a great investment destination. To help you make an informed decision for your investment in Cambodia, we highlight some of the common types of opportunities that are available in the Cambodian market.Condominiums and ApartmentsThis is the most common type of investment for foreigners in Cambodia, and in many ways, the easiest to understand. Most developers targeting international buyers will structure projects with some sort of rental return scheme or GRR, generally around 5%+ per year for up to three years. Although not all developers will offer a GRR scheme and may opt for offering buyers a small discount on the purchase price, especially if they are targeting buyers that intend to live in the property. A common question you will be asked by developers is: Are you buying for living or investment?*Guaranteed Rental Return (GRR) or Rental Return Scheme (in some counties) is the amount of money often communicated in a percent based on the purchase price of the property that the developer guarantees you as the buyer in return, over a certain period of time. If you are purchasing a property with GRR make sure it is mentioned in your sales and purchase agreement.Learn more about Guaranteed Rental Returns hereStrata titled office space and commercial unitsSimilar to the high demand for more housing in Cambodia, there are also 100's of new businesses and multinationals entering the market. In line with this, developers have identified this as an opportunity to differentiate themselves from their competitors and offer strata-titled office or commercial units for sale. Sometimes this can be integrated into a development that will also include apartments for sale, or it can also be a stand-alone office development project.Serviced Residence, Hotel and Resort-style investmentsAn increasingly common investment type or opportunity that we are seeing in Cambodia is investing in a serviced residence or hotel. This can be highly attractive to many investors that are looking for high and often guaranteed rental returns. It is also not uncommon for these types of investments to have a Guaranteed Buy Back option built into the purchase.A guaranteed buyback is a contract between the developer of a new project and anyone who buys a unit within that development stating that the developer will buy back the unit from the owner after a fixed period of time.Colonial apartmentsCambodia is littered with 100's of old French colonial buildings, and a common trend for foreigners living in Cambodia is to buy an older apartment, with the vision of renovating the property before selling it at a higher price. This is very common in many markets around the world. Whilst there are some great financial gains to be made in this type of investment, we would advise anyone living outside of Cambodia to focus on other investment opportunities in the property market, that come with a long-term lease, hard or strata title.Realestate.com.kh is home to over 30,000 (and growing!) property listings all over Cambodia. Our property advisors are on standby to help you in your real estate search!Need help finding the right property? Let us know!Article by:
How to get Cambodian citizenship by donation
How to get Cambodian citizenship by donation
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
Want to live, start a business, and buy land in Cambodia?The Cambodia residency by donation laws allows you to do just that. Cambodian residency (citizenship) by donation is one of the legal pathways to achieve citizenship in the Kingdom; the others are: citizenship by naturalisation, citizenship by investment, citizenship by marriage, and citizenship by birth and descent.To become a citizen through providing a donation can take anywhere between 3-6 months and there are a number of requirements including:Applicant must be 18 years of age or olderApplicant must have a current and valid passportApplicant must have a current valid visa for entry into CambodiaApplicant must be of sound mindApplicant must be in good healthThe applicant must have a qualifying investment in Cambodia of at least 1.25 billion Riel (USD $311,000).Similar to a citizen by investment, the citizen by donation's only difference is that the applicant donates the money to the Cambodian government’s national budget, and that donation will be used for the betterment of Cambodia & its people. The non-refundable amount of 1 billion riels (about US$250,000) must be donated to be eligible.Cambodian Citizenship BenefitsAs a Cambodian citizen, you can take advantage of the local benefits that are not legally available to other foreigners.You are entitled to own land & property in your own name.You are able to live in Cambodia with no visa requirements and enter or leave the country as and when you like.You are eligible to apply for government concessions and licenses that are only available to Cambodian nationals.Travel to other ASEAN countries with ease.You can learn more about the types of land titles and property ownership in Cambodia for citizens and foreigners.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Do I need a bank account to buy property in Cambodia?
Do I need a bank account to buy property in Cambodia?
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
You don’t need a Cambodian bank account, but here is why you should open one.If you are intending to purchase your new home/investment in Cambodia, opening an account is not a legal obligation.Many expats choose to keep their bank accounts from home open and use them as their primary source of cash. It quickly becomes evident with mounting ATM charges (up to $5 per transaction) for foreign cards in Cambodia (and the home banks often charging the same), this is not the most economically viable way to conduct daily spending.What are my options if I don’t have a local bank account and want to purchase a property?You can use a lawyer's account and/or transfer monies directly to a developer. If you choose to transfer directly to the developer please ensure you seek legal advice prior to doing so.The benefits of opening a local bank account for investment propertiesIf you plan to receive rental from your tenants locally, having a local bank account reduces your transfer fees. It's also much easier to have access to local funds and local transfers through bank apps. This will allow you to pay expenses when overseas with minimal fuss and cost.As with any foreign country, there are high-risk factors of transferring large sums of cash directly to an unknown person/persons. And while Cambodian law is becoming more sensitive to the needs of foreign investors, anyone looking to invest in the Kingdom would still do well by securing their bases and opening a bank account if possible.If you are interested in opening a bank account in Cambodia, please read our ultimate guide to banking for foreigners in Cambodia. Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Transferring funds into Cambodia
Transferring funds into Cambodia
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
The procedure for bringing money into Cambodia is easy as long as you have the right documentation you can easily transfer it without any problems.Foreign exchange controlsThere are no restrictions on the remittance or repatriation of capital or profits into or out of Cambodia, so long as the transfers are conducted through registered financial institutions (Banks).Riel (KHR) is the official currency of Cambodia, however, most transactions are conducted and denominated in the US dollar. Remittances are subject to applicable withholding taxes.Restriction on the foreign exchangeThe “Law on the Foreign Exchange” of September 1997 stipulates that “there shall be no restriction on foreign exchange operations” through authorised banks (Article 5) but the authorised banks shall report to the National Bank of Cambodia the amount of each transfer equalling or exceeding 10,000 US dollars (Article 17). Residents are allowed to hold foreign currencies freely (Article 7).Article 5There shall be no restrictions on foreign exchange operations through book-entry including purchases and sales of foreign exchange on the foreign exchange market, transfers, all kinds of international settlements, and capital flows in foreign or domestic currency, between Cambodia and the rest of the world or between residents and non-residents. However, such operations shall be undertaken solely through authorized intermediaries.Only banks permanently established in the Kingdom of Cambodia shall be considered as authorised intermediaries.Authorized intermediaries shall be required, under conditions established by regulations, to provide the Central Bank on a regular basis with periodic statements, by type of transfers or settlement and of outflows and inflows of capital carried out between the Kingdom of Cambodia and the rest of the world, according to the time set by the Central Bank.Any export of cash in foreign currency by authorised intermediaries shall be subject to prior declaration to the Central Bank.The manual money changers who have fixed or moving counter may exercise their exchange transaction with the prior authorisation of the Central Bank.Article 7 Residents may hold foreign currencies freely, both in form and location of such holdings inside the country. Nevertheless, in case of a foreign exchange crisis, the Central Bank may issue regulations to be implemented for a maximum period of 3 months, suspending temporally the enforcement of this provision. In case of having to prolong the scheme, the Central Bank together with the Ministry of Economy and Finance shall submit a request to the Head of the Royal Government for approval.Article 17Transfers relating to investment or liquidation of investment shall be made through authorised intermediaries as stated in Article 5 of the present law.Subsequently, the authorised intermediaries shall report to the Central Bank the amount of each transfer equalling or exceeding one hundred thousand US dollars (USD 100,000).RememberAlways check with your bank in Cambodia prior to any transfers to ensure the correct documentation is completed and compliant with the relevant laws.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
REAKH Survey 2023 ENG 590 x 250
Common area maintenance fees: What are they for?
Common area maintenance fees: What are they for?
June 6, 2022, 5:06 p.m.
Realestate News
Property Reviews
What is the common area?Simply put, the common area is that which is not included within the boundaries of the title of your private property. For example, in a condo, the common property is everything outside of your apartment. There may be different rulings for different buildings in cases such as balconies, however as a guideline, this description is sufficient.What do common area maintenance (CAM) or sometimes just known as maintenance fees cover?CAM fees cover the general upkeep of the property, minor repairs, swimming pool, landscaping, elevators, external window cleaning (on high rise developments) security and bills for water and electricity used in the common (shared areas).The CAM fees do not cover maintenance and repairs to your own property. For example, if you have a leaking tap, that is your cost. If the main water pipe feeding the building needs repair, that would be paid from CAM Fees.How are CAM Fees calculated?CAM Fees are calculated based on the share meterage of your property/apartment. A budget is forecasted, with the cost of maintaining and operating the common property calculated. The CAM Fee is based on this amount divided by the total Square Meterage of the combined lots, not the square meterage of the building.The CAM Fees are commonly paid monthly; however, some Owners Groups may require the total annual fee to be paid in advance. Some Owners Group may include management fees in the CAM Fee, however in most cases management fees will be a separate charge.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Sinking fund: what is it and what’s it for?
Sinking fund: what is it and what’s it for?
June 7, 2022, 4:36 a.m.
Realestate News
Comparisons
What is a sinking fund?A sinking fund is an essential financial tool for owners' corporations, i.e. Owners group, body corporate or owners committee, to ensure that the future maintenance/refurbishment expenses of a strata building can be met.What is the sinking fund For?Sinking funds are to cover the cost of future common emergency expenses or major capital works.We will use a house as an example. If a tile on the roof is loose, that repair is covered by the Maintenance Fund. If you have to replace the whole roof, that cost is allocated to the sinking fund.How are sinking funds calculated?Using examples from other countries, sinking fund fees are calculated based on an audit of the building known as a sinking fund forecast. This audit is undertaken by a suitably qualified surveyor engaged by the owner’s corporation. This audit looks at the condition of the building, plant and machinery, and calculates the life cycle of these items, forecasting either the plants’ replacement or refurbishment in a set number of years, for example, 7, 15 and 20 years from the date of the audit.The audit will also calculate what these works may cost in the future. These costs will be broken down into per lot fees paid either monthly or annually, to be held in trust by the owners’ group until the refurbishment is required.Without an established and well-managed sinking fund, owners may find themselves facing extensive costs in the form of special levies. These costs can be considerable, particularly if there are catastrophic construction defects or the need to replace equipment such as elevators.Although the Cambodian Government introduced the 2009 Sub-decree on the Management and Use of Co-owned Buildings that requires “ the co-owners to establish a management board or an executive committee as agreed among themselves following the prescribed internal regulations” the requirement to establish a sinking fund and its associated requirements are not completely covered by this decree.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Key investment locations & local terminologies you will need to know
Key investment locations & local terminologies you will need to know
June 6, 2022, 5:06 p.m.
Realestate News
Property Buyers & Sellers Advice
First of all, let's understand how locations work in Cambodia. Locations are defined by three main terms. Each term has two commonly-used and widely-accepted words. Sounds confusing. Don’t sweat, we’ve got you covered. When we say locations, we mean cities, suburbs, districts, provinces, etc. Simply put, locations in Cambodia are defined by 1. City/Province, 2. Khan/District, 3. Sangkat/Commune, and even then if you were on a website like Wikipedia you will get confused as it starts talking about municipalities and so on. In this guide, we will provide you a better explanation of the terminology used for some of the most popular and high potential locations for developments in Cambodia and identify a few of the terms, locations, and references that might confuse you as a property seeker in Cambodia.City or ProvinceThere are 25 cities and provinces in Cambodia and most Cambodians as well as expats, use the term province if they refer to any location outside of Phnom Penh, which they regard as a city. Regardless they are more or less the same thing. And the top three locations for condominium investment are Phnom Penh city, Siem Reap province and Preah Sihanoukville, known locally as Kom Pong Som province.(Silk island, locally known as Koh Dach, is a 1-hour drive famous gateway island from the bustling city of Phnom Penh / Seiha Phorn) Khan or DistrictThe next level is commonly known as Khan or District. There are 12 districts within Siem Reap province, 4 in Preah Sihanoukville and 14 currently in Phnom Penh. For the purposes of better planning, in 2019 the Cambodian government created two new districts within Phnom Penh. One known as Kamboul and the other one is Boeung Keng Kang, a more important district for condominium investors to learn about. Located right in the heart of Phnom Penh, Boeung Keng Kang is locally known as BKK by Cambodians and expats. BKK is a hotspot for some of the most promising top-tier residential development projects.(BKK is one of the hotspots for new developments in Phnom Penh / Realestate.com.kh) Sangkat or CommuneThe next level is known as Sangkat or Commune and even then it goes more granular (with Khom or Village) although those are little known, even by local Cambodians. Since 2019 Boeung Keng Kang now houses Boeung Keng Kang I (BKK1), Boeung Keng Kang II (BKK2), Boeung Keng Kang III (BKK3), Olympic, Tumnop Teuk, Tuol Svay Prey I and Tuol Svay Prey II. While another popular location for condominium investment known as Tonle Bassac which is just next door to BKK1 and is located within the Chamkarmon district. If you are searching for property on realestate.com.kh, we have not made the change in our location data set as the market (property seekers, agents and developers) generally follows the old locations and classifications for now.Phnom PenhIf you are looking for property in the capital city of Phnom Penh, the hot sub-locations for these top-grade and luxury investments include: 1. Chamkarmon, as mentioned above the classification for the sub-locations by law has changed, however, the agents, developers and property seekers have not adopted this yet, so as to not confuse the users of realestate.com.kh - neither have we. Chamkarmon can sometimes be referred to as the centre of Phnom Penh, and whilst the district does demand the highest rental returns and the highest land price per square meter especially in BKK1 and Tonle Bassac the actual Central Business District (CBD) is in sangkat Wat Phnom within Daun Penh district. Another hot location for condominium investment is Koh Pich which translates to Diamond Island in khmer, is actually not a sangkat itself. Koh Pich (Diamond Island) is a part of Tonle Bassac commune.Remember, If you are searching for properties on realestate.com.kh and you are interested in properties within Koh Pich, you can simply select this location from the landmarks drop-down list within the search bar or simply select Tonle Bassac as your prefered location. 2. Central Business District, whilst it needs some time to be adopted market-wide, the CBD in Cambodia is defined by the main collection of A to B grade office towers in Phnom Penh including Vattanac Capital Tower, Canadia Tower, Exchange Square, and Raintree which are all located within sangkat Wat Phnom in Daun Penh district. In its vicinity, you will also find key government ministries as well as the leading bank and financial headquarters.3. The South of Phnom Penh or Hun Sen Boulevard is one of the fastest-growing hot spots for investment in Cambodia. Key landmarks and hubs already in operation in the area include: The Factory (an integrated entertainment, food & beverage, arts, culture, and workspace) as well as ISPP, Cambodia's leading international school. Adding to that both landed property and condominium developers have already started construction in the area and three major malls (including AEON Mall 3) will be coming in full operation within the next 5 years. All of which points to a fantastic opportunity for investors, as the area is truly moving out of being a backwater swamp to one of the most livable areas in Phnom Penh. Most developers and agents will refer to the location as "The South", "South of Phnom Penh" or "60 Meter Road" which is actually Hun Sen Boulevard. It runs through multiple sangkats including Chak Angrae Leu which is in Meanchey district.4. Riverside, is another hot spot in Phnom Penh and another area that is not commonly referred to by its actual sangkat or district name. Locally, the location simply earns its name as it sits next to Tonle Sap river and ends where it meets the Mekong river.5. Chroy Changvar is a location often compared to the South of Phnom Penh by agents, developers, buyers, renters, and investors. Not because they are necessarily close to each other, but more because they are both experiencing similar growth in terms of infrastructure development, connectivity, housing developments and more. Chroy Changvar district is commonly known market-wide as the name of the location suggests - Chroy Changvar.(Chroy Changvar is another hotspot for development. It is one of the fastest-growing districts in Phnom Penh / Sieha Phorn)6. Close to the Airport seems to be a term used in emerging market property related marketing worldwide and to add to this the Cambodian government has recently announced the location of the new “Phnom Penh International Airport”. So expect developers to be using a phrase, around both airports from now on. The current airport (the biggest and main airport in Cambodia) is located in Por Sen Chey district, while the new airport will be in Kandal province which is yet another advantage to the Southern part of Phnom Penh. However, all is not lost for those that are looking to or have invested in Por Sen Chey district as this area is very popular with Cambodians and international expats alike, and will remain a key business and logistical hub.(The current Phnom Penh International Airport is the largest airport in Cambodia) 7. Sen Sok is a location widely known by the majority of Cambodians, and less common with international investors or even expats, but if you heard the term AEON 2 or Makro Cambodia  then you're more likely to know where we’re talking about or have at least seen it mentioned by developers. This area is also becoming more and more popular with landed and condo developments.Sihanoukville, Kom Pong Som or even Preah SihanoukOn realestate.com.kh we refer to the coastal region as Sihanoukville so do most developers, agents, and property sellers, certainly, if they are targeting international buyers. Although Sihanoukville includes sub-locations, the areas are more defined by the name of its different beaches such as Sokha Beach, Independence Beach, Ochheuteal, Serendipity and Otres rather than sangkats or khans. The main landmark that is referred to by property developers is the Golden Lions Roundabout, as most people consider this as the centre of town.Off the coast of Sihanoukville, there are also multiple islands with many investment opportunities for foreigners and these locations are all prefixed with the word "Koh" at the start of it, which translates to “island” in Khmer language. So if you see the location Koh Rong for example, this means that it is an island off the coast of Sihanoukville. Ream is another location that you will start to hear more in the coming months and years. Ream is one of the seven national parks in Cambodia and it is only 20 minutes drive from Preah Sihanouk International Airport.(A beautiful beach inside Ream national park, about 50-minute drive from the city centre / Phan Soumy) (Sihanoukville International Airport, one of the three currently running airports in Cambodia / Realestate.com.kh )(A new under-construction road along the coast of Ream leading to the city centre / Phan Soumy)  (This road is part of the nearly 300 million dollars road construction project that is being implemented in Sihanoukville / Phan Soumy) (A wide-open roundabout overlooking the ocean of one of the 34 under construction roads in the coastal province of Preah Sihanouk / Phan Soumy)  Siem ReapSiem Reap is a significant province of Cambodia and home to the famous Angkor Wat temple, the world’s largest religious site. Whilst it remains a favorite place for tourists in Cambodia, it has been less favored by condominium investors. Simply, because up until recently there were not many condominium projects being built. Most of the property developments were and still are landed property or low rise hotels.Why is this? Developers are not allowed to build above the height of Angkor Wat and therefore they have favored Phnom Penh and Sihanoukville. However, this has changed over the last few months. The main thing to know in relation to sub-locations in Siem Reap is to ask the developer if it is close to Pub Street, a famous area within the city centre, full of restants, bars, shops, hotels, guesthouses, and other businesses. Sub locations will be rarely used in marketing material and will simply be marketed with Siem Reap.How does realestate.com.kh tackle some of the above issues?Property seekers can simply use the powerful search bar and type in the first three letters of a city, khan or sangkat and choose from the suggested locations that will appear as the user is typing the location. However, property seekers can also choose from the list of popular locations and even popular landmarks in Cambodia once they have clicked the search bar. Once a property seeker is looking at a property that they are interested in, they can also populate the map that appears on all properties to check the proximity to certain landmarks by simply typing the name of the landmark in the search box on the property page - for example, "Phnom Penh Airport". The map also allows you to populate nearby schools, restaurants, transport and hotels to give the buyer an idea of what infrastructure and amenities are nearby.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now on both iOS and Android.Article by:
Buying a Retirement Property in Cambodia
Buying a Retirement Property in Cambodia
June 6, 2022, 5:06 p.m.
Realestate News
Property Buyers & Sellers Advice
A beautiful Cambodian house with a western-influenced interior design. Supplied.So, you are Retired or Retiring?While Thailand has historically been a popular destination for retirees, Cambodia is rapidly gaining interest for retirees based in Thailand, or those looking for an alternative to retirement in their country of origin. In fact, InternationalLiving.com's Annual Global Retirement Index for 2019 has named Cambodia the number 12 best place in the world to retire. For more information on the requirement for retiring in Cambodia, please read our ultimate guide to retirement in Cambodia.Access to inexpensive quality healthcare, ease of visa processing, and an ever-increasing expat community makes Cambodia an attractive retirement destination. Foreigners are 100% eligible to own a freehold condominium in Cambodia under certain conditions.The Cambodian Foreign Ownership Property Laws (legislation passed in 2010), allow foreigners to buy and own properties in Cambodia on the 1st floor or higher of a condominium. The property must possess a strata title and cannot exceed 70% of foreign ownership. For more information, please read our ultimate guide on the strata title. If you don’t want to live in a condominium, there are a number of options with regard to the purchase of your retirement dream home.Option 1: Purchase a long-term rentalThere are Cambodian properties, both in the city and the countryside, that would be more than willing to rent out their properties to retired expatriates. This is arguably the simplest option for most foreign retirees - a straightforward process with little hassle.Option 2: Registering real property with a Cambodian citizenThis method requires the retiree to have a trusted Cambodian citizen to be the legal owner of their property. This is more popularly known as buying property through the Nominee Structure. This certainly has its downsides such as not having the property in the buyer's name but if the buyer has someone they can trust, this can prove to be more secure than a long-term rental.Option 3: Marriage to a Cambodian nationalForeign buyers who are married to a Cambodian national can register their property using the name of their spouse on the Title Deed.Option 4: Acquisition of honorary Cambodian citizenshipA foreigner may be granted honorary Cambodian citizenship if he or she satisfies a set criteria for citizenship along with a significant donation to the Royal Government of Cambodia for the purposes of benefiting the people of Cambodia.What Do Retirement Homes in Cambodia Look Like?This beautiful villa is located in Arey Ksat area, which is only a short trip away on a ferry from the centre of Phnom Penh city. This property is an ideal option for a perfect retirement home. Looking for a retirement home in Cambodia? Let us help!Article by:
Strata title buying guide for foreigners
Strata title buying guide for foreigners
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
A rendered image of the luxurious Agile Sky Residence in the heart of Phnom Penh.Can foreigners own land in Cambodia? The short answer is No. But the Royal Government of Cambodia has eased on this restriction by allowing foreign nationals to own property via Strata Titles.Strata title in Cambodia is a relatively new type of property ownership and the only one granted to a foreign national. This type of property title is presently restricted to condominiums, and more recently, office buildings since foreign nationals are not allowed to own landed properties in the country.The question now is, how do you, as a foreigner, get a Strata Title?DISCLAIMER: Foreign buyers, local buyers, foreign buyers with Cambodian citizenship, and companies have to satisfy slightly different requirements to purchase a Strata Title. We strongly recommend consulting a real estate agent to walk you through the specifics of your case. For this guide, we will be walking you through the general steps for an individual foreign buyer.How to obtain a Strata TitleObtaining a Strata Title starts with the owner of the property. But before heading to the sales office of a condo, we advise buyers to first check with the local cadastral office and local commune council if the developer/owner does indeed have legal ownership of the original title. In the case of property developers, this step is meant to verify their ownership of the Hard Title and its eligibility to be partitioned into Strata Titles.Upon completing the above mentioned due diligence, buyers may proceed in dealing with the company itself. While condo developers will likely have representatives to handle sales, we advise buyers to obtain a copy of their company/national ID as another layer of due diligence. This goes double for individual condo owners offering their unit(s) for resale.Once that’s clear, the buyer and the owner of the hard title (or an authorised representative) must physically be present at the same time in the cadastral office to initiate the title transfer. Foreign buyers are required to be in Cambodia for the title transfer as their thumbprint is required to be affixed in the Vente Definitive and the Application for Ownership Transfer, both being standard documents provided by the land department.It’s important to note that the Ministry of Land Management, Urban Planning, and Construction (MLMUPC) requires fully certified documentation of the identity and marital status of the buyer to be supplied and translated into Khmer - this includes the name of the buyer as English names are not permitted on property titles.The requisite fees for title transfers are paid at the General Department of Taxation (GDT). Transfer taxes are paid after the land office reviews and certifies the submitted documents. These same documents will be submitted to the GDT who will then assess the value of the property based on a proprietary set of criteria and calculation methods. An officer from the GDT will then be responsible to perform the evaluation and may take anywhere from 1-2 weeks. After the assessment, an invoice will be issued containing the transfer tax required to be paid.NOTE: It is common practice for sellers to pay the transfer tax, but this can go either way. Be sure to clarify this part of the transfer with the owner.A receipt will be issued by the GDI as proof of payment to the party who made it. This receipt, along with the certified documents will be brought back to the Cadastral Authority at the MLMUPC. A new original title, with the name of the new owner, will be issued by the Cadastral Authority.A sample of a Strata Title issued by the MLMUPC.Other ownership methodsIf you’ve assessed that Strata Titles do not meet your needs, there are other methods such as obtaining Cambodian citizenship, or a company lease, to own landed properties in Cambodia. But those involve completely different steps which are relatively more complicated. We highly recommend seeking the assistance of a Cambodian lawyer to properly guide you through the whole process of these alternative methods.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
How to start a real estate agency in Cambodia
How to start a real estate agency in Cambodia
June 7, 2022, 7:05 a.m.
Realestate News
Property Buyers & Sellers Advice
A lot of foreign businesses are taking an interest in the Kingdom of Cambodia due to its attractive investment environment. As such, local entrepreneurs have thrown in their lot to set up real estate companies to meet the demands of both fellow Cambodians and foreigners. But setting up a real estate company is easier said than done.In this Realestate.com.kh guide, we will give you the guidelines for starting a real estate company with the necessary paperwork and licenses pertinent to Cambodia’s laws and regulations.DISCLAIMER: Realestate.com.kh strongly recommends consulting a lawyer for their professional guidance. This guide is only meant to give prospecting business owners an overview of starting a real estate company in the KingdomKey considerations in starting a real estate agencyInvestors looking to start a real estate agency in Cambodia will need to consider things such as company registration, tax obligations, real estate licenses, office setups, recruitment, and business plans.If you’re interested in starting a different kind of business, you can check Realestate.com.kh’s general guide to starting a business in Cambodia.For the purposes of this guide, we will specifically talk about how to start a real estate agency in Cambodia.Registration with the Ministry of CommerceBusiness registration is required at the Ministry of Commerce of the Kingdom of Cambodia. Registered businesses within the Kingdom are given a certificate of registration.The company must meet these following requirements from the Ministry of Commerce:Shall define a company name to be approved by the Ministry of CommerceShall come up with the company’s terms and conditions, documents to prove where the company is located, identity card of the company owner, certificate of bank deposit (at least $1,000), company stamp, appointment letter, and business registration application.The registration period at the Ministry of Commerce takes about two weeks and costs around $370. There are services rendered free of charge.Paying taxes at the General Department of TaxationAfter registering with the Ministry of Commerce, the applicant must submit the certificate of registration, along with other relevant documents, to the general Department of Taxation to pay their registration tax and annual patent tax for the initial registration.Patent Tax is derived from the taxpayer classification of the business owner under the Self-Assessment Regime of Taxation and is payable between January 1 to March 31 of each year. We advise consulting a lawyer on how you can properly asses your taxation regime to start a business in Cambodia.New taxpayers, whose business began within the first six months of the year will pay their annual tax in full. Those who begin their business within the last six months of the year will only have to pay half of their annual tax.Business owners who own several assets (such as warehouses, offices, etc) under one business in the same province only have to pay their patent tax within that province. Businesses who own assets across provinces will, however, have to meet their patent tax obligations in each province.Business owners are required to display the patent at their place of business. These patents take about 1 to 2 weeks to obtain and will cost 1,200,000 riels (US$290).Obtaining a license from the Ministry of Economy and FinanceThe last general step is to obtain a license from the Ministry of Economy and Finance. In order to apply for a license, the applicant must prepare the following documents:Completed application license formPhoto of the license owner and certificate of professional real estate serviceBackground of shareholder or company ownerLetter from the Ministry of Justice of CambodiaPhotocopy of a national identity card and residence bookDocuments issued by the Ministry of Commerce and Taxation, the company’s certificate of registration, and a copy of a letter of business registration and patent.Letter of business location issued by the local authority, together with photos of the business location.A 3-year business plan.Applying for a license at the Ministry of Economy and Finance takes about one month from the date of filing the sufficient paperwork without error.The required fees for a real estate agent license are as follows:Real estate agent license is 500,000 riels (US$ 120) plus an administration fee of 100,000 riels (US$ 25)Certificate of professional real estate service is 200,000 riels (US$ 50) plus an administration fee of 40,000 riels (US$ 10), totaling 840,000 riels (US$ 210).Once you have been issued a license and professional certificate from the Ministry of Economy and Finance, you can legally operate your business in Cambodia.You can register to be a member of the Cambodian Valuers and Estate Agents Association. Currently, CVEA has over 100 member companies, working as a network to promote real estate in Cambodia.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
retiree on the beach
The ultimate guide to retiring in Cambodia
June 7, 2022, 6:51 a.m.
Realestate News
Home & Living
Cambodia consistently ranks well on InternationalLiving.com's Annual Global Retirement Index and also has easy to obtain visas for retirees compacted to other ASEAN nations. In the 2019 InternationalLiving.com's Annual Global Retirement Index, Cambodia was named as the 12th best place in the world to retire.  This was the fourth year in a row that the Kingdom held that title.In the 2021 edition, Cambodia again ranked as one of the most affordable destinations to retire and one of the best countries to retire overall. Nine.com.au has also named the Kingdom as one of the best places to retire. Realestate.com.kh provides you with a step-by-step guide for retirement in Cambodia. We'll cover renting, getting a visa, and even how to stay active.Renting when you retire in CambodiaRent, of course, is very affordable in Cambodia. You can get a Western-style apartment for rent in Phnom Penh for as little as $300 per month. That’s in the capital, too. It’s even cheaper in some other popular towns like Kampot, Sihanoukville, Battambang and Siem Reap.For those on a fixed income, it is still possible to live comfortably in the Kingdom. There are serviced apartments that cover nearly every need for you. Most prv]ovide cleaning services, a fitness centre and even a pool. You can find one-bedroom places like this starting at around $500 per month in Phnom Penh.Other options include getting a house for rent in Cambodia, or a condo for rent in Cambodia. These can be a bit more expensive close to city centres and depending on the amenities you ideally want included. Getting a Cambodia retirement visaThe process for visas is pretty straightforward here. There’s even a special category for retirees. When you arrive in the country, make sure you get the regular (E class) visa, and not a tourist visa so you can get the Cambodia retirement visa. After that, you will simply apply for ER (retirement) extensions.Here are the retirement visa requirements:You must be 55 or older.You cannot be employed.You must be able to prove you are retired (with a pension or social security documentation) and have enough funds (bank or retirement fund statements).These extensions can be valid for various lengths up to one year. Prices are similar to working visa extensions which cost around $290 for a full year with multiple entries. Head to any travel agency in town and they can help you with processing.Please note that immigration officials can fine an ER holder working in Cambodia, and potentially issue jail time and deportation if the laws are broken.2019 also saw the introduction of the Foreigners Present in Cambodia System (FPCS) and every expat is required to register on the system.The Cambodian ministry working group was drafting a new law on immigration to manage foreigners in the SEA country but these are yet to be finalised.Where to retire in CambodiaCambodia is chosen by many Western expats for its laid back atmosphere and considerably lower living costs. The most popular place to retire is, of course, in Phnom Penh. It has everything any retiree may want from good food, a variety of entertainment, and sociable company.Vital public and healthcare services are also easily found in Phnom Penh. Given that healthcare is a concern for retirees, we've come up with a comprehensive list of hospitals and clinics in Phnom Penh.Though if a fast modernising city isn't to your liking, Siem Reap or Sihanoukville may be a good choice if you still want some urban comforts. These don't feature the same kind of lifestyle as Phnom Penh but instead, they are busier when it comes to tourists visiting the iconic Angkor Wat Temples or the islands off the southern coast.Siem Reap itself has a growing portfolio of property developments of its own that can keep anyone's retirement interesting. It is more laid back, has excellent food and drink options, nature on its doorstep and a vibrant arts and culture scene.Sihanoukville has undergone major development and the city itself is now sprawling, offers malls, condos and planned gold curses and is the gateway to the beautiful islands.Kampot and Battambang are even more reserved but have become increasingly popular with expats and retirees for the lifestyle.After all, a new world of fun starts at retirement!Buying food while retired in CambodiaWhether you want to cook for yourself or eat at a restaurant, dining in Cambodia is a relatively minor expense but you can also wine and dine at gourmet eateries and five-star hotels.A meal at an inexpensive restaurant will only set you back about $4 in Phnom Penh. Elsewhere in the country prices are even lower.Just for reference, here’s a list of some common groceries, and what their averages prices are in Phnom Penh:A loaf of white bread - $1.75A dozen eggs - $1.60One kilo of chicken - $4.47A litre of milk - $2.27Latte or cappuccino at a cafe - $2.50One bottle of beer - $1.00As you can see, daily life is definitely affordable. If you want to find cheap food, goods and houseware, go to a local wet market. Otherwise, hit a local convenience store or the western-style supermarkets for something more Western, or even the growing number of specialist stores.Brands like Circle K, Super Duper and Aeon Express are growing quickly and expanding in the cities with international brands constantly opening in the Kingdom.Retired? No, staying active in CambodiaIt’s easy to find a productive hobby in Cambodia. If you’re the active type there are clubs for all kinds of sports like tennis, golf or jogging. If you like riding or fixing motorcycles, Cambodia is great. Riding happens all year round!Is humanitarian work more your style? There are plenty of NGOs here that need your help. You could even volunteer and mentor local youngsters but many reputable non-governmental organisations and schools should carry background checks.Travel while being retired. It's the Cambodia way!If you’re a retiree from the West and you’ve decided to settle in Cambodia, chances are you already caught the travel bug. Luckily, the country sits right in the middle of Southeast Asia, one of the most popular tourist regions in the world.Malaysia, Indonesia, Thailand, Vietnam, Singapore, Hong Kong and several other countries are just a short plane ride away. Further afield, but still within close reach are China, India, Australia, Japan and South Korea.And, of course, travelling around Cambodia is an adventure in itself. Read more in our expats guide to Cambodia. Healthcare isn't expensive for Cambodia retireesGetting medical treatment in Cambodia can be a mixed bag. There are pros and cons.The positives are:Medication in Cambodia is incredibly affordable. Almost everything is available over the counter.Seeing doctors for routine ailments like the flu or a stomach bug is usually quick and easy.Higher-end clinics and hospitals in Phnom Penh tend to have great doctors who speak fluent English.If you prefer to see a Western doctor there are a handful practising in the Kingdom.There are a few drawbacks, however. This is still a developing country, after all:For serious issues, many people (locals included) opt to visit doctors in Thailand, Vietnam or Singapore. Generally, the level of treatment thee is better, and still quite affordable.Make sure you are getting medication from a reputable pharmacy. Better safe than sorry.We advise anyone living or visiting Cambodia to have the necessary travel and medical insurance.Loving the retired lifestyle in CambodiaAt the end of the day, it all comes down to what makes you happy. Thousands of people choose to retire abroad every year. If Cambodia is the place that makes you happy, that’s where you should be.Realestate.com.kh hopes this guide can be helpful to all the Kingdom’s retirees. Comment below if you’re retired here and have anything to add. And don't forget to browse our listings for real estate for rent in Cambodia. You can start your journey as a retiree today!Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
davy kong, DFDL
How To Get a Real Estate Development Licence in Cambodia
August 2, 2022, 9:17 a.m.
Realestate News
Property Buyers & Sellers Advice
The real estate sector has grown tremendously over the last two years. Much of the activity is being seen in the construction sector.Prakas 965Issued by the Ministry of Economy and Finance (MEF), this prakas has served to establish a system to manage real estate development in Cambodia. It was passed in 2016 and replaced a previous prakas that was less comprehensive. Prakas 965 also serves to regulate the housing business and establish rules for operation. It calls for every developer to be properly licenced. Any business that is developing four or more flats, three or more villas or at least four units in a co-owned must have a licence.Prakas 089The Ministry of Economy and Finance (“MEF”) issued Prakas No. 089 SHV on 20 January 2020 relating to the Management of Real Estate Development Business. The new prakas distinguishes between three different types of licenses or permits depending on the activity performed by the real estate developer:Residential development business license/permitsCo-owned building development business license/permitsLand parcel development business license/permitsPrakas No. 089 specifically instructs that the listed three activities above are subject to obtaining a license or permit if the real estate developer endeavors or performs a business activity for the purposes of a sale or long-term lease. Prakas No. 089 merely reintroduces leasing activities that were excluded by Prakas No. 965.Types of Housing Development LicencesThere are two different types of residential development licences for housing developers in Cambodia.Type 1 Licence: All capital is held by the developer. For this type of licence, construction must be totally complete before the housing is sold.Type 2 Licence: This type allows for investments from many sources such as banks, private investors, or pre-sale buyers. With this licence, sales are allowed during the construction period.The licence fee for developing a flat or single villa is around $25, the exact fee is determined by the MEF.There are two tiers for fees. Units with more than three bedrooms or twin villas have developing fees of $50.Requirements for Developing LicenceIn order to obtain a developing licence in Cambodia, you must meet certain criteria.You must have a company set up. Before the new prakas in 2016 individuals could develop real estate. Now, however, there must be a registered company on the books.The project must be backed up by $500,000 in capital. A housing development account is required. This account is monitored by the Ministry of Economy and Finance.You must have a detailed business plan.The person whose name is on the licence must be a chairman for the associated company.A deposit must be paid for 2% of the total investment of the project. This must be deposited at a branch of the National Bank of Cambodia, or a local affiliate.Note: To withdraw this deposit you will need a closing permit and a report on the completion of construction, issued by the Ministry of Land Management. You also need an assessment from the MEF.A construction licence must be held for the building site.Buying and selling There is plenty of unscrupulous development activity in Cambodia. Article 19 of the prakas lays down regulations for buying and selling. Rules for buying and selling are different depending on which licence you have, Type 1 or Type 2:Type 1 LicenceBefore you start selling under this type of licence, you must have a model home or model unit. You must also have a closing permit and an assessment from the MEF before beginning sales.If you begin sales without a model you can be subject to a fine.Type 2 LicenceYou must also have a model unit for this type of licence, as well as a MEF assessment and closing permit. Under this licence, you are only allowed to take a maximum 1% deposit from buyers before you obtain a construction permit. This must be deposited into the housing development account.Purchase AgreementThere are a few key stipulations about the purchase agreement. It must contain:Names of the buyer and sellerDetails about the plot of land (location, size, etc)Purchase price and payment conditions Responsibility for taxes and processing feesProject completion date and reference to construction permit detailsAdvertising and marketingA developer licence must be obtained before any advertising or marketing takes place. The location of the project must be mentioned in any advertising. The project name must also be mentioned, as well as price, date of commencement and completion.Land declarationIn every step of the development process, it must be clear whether the land is leasehold or freehold. Freehold land is completely held by the property owner. Leasehold land is held under a lease agreement for a certain amount of time.Since foreigners cannot technically own land in Cambodia, those developers can get a long-term lease on the land instead.Monthly reportsThe developer is required to submit monthly reports to the MEF during the life of the project. This report must document all movements of funds in the developer's account. PenaltiesFines for breaking any regulations set down in the prakas can be subject to fines of $25,000. If developers are found to be using accounts separate from the monitored developer account, they can be subject to a fine of $2,500. Advertising without a licence can lead to penalties of $200 per day. Note: This is a general guide and does not constitute definitive legal advice. Always do your own research and invest at your own risk.Looking for property in Cambodia? Let us help!
Phnom Penh TK Avenue
Guide to starting a business in Cambodia
June 7, 2022, 7:12 a.m.
Realestate News
Home & Living
This year’s World Bank Ease of Doing Business report ranked the country 185 out of 190 when it comes to starting a business in Cambodia. However, many foreigners are still attracted to the Kingdom as a place to begin their journey as entrepreneurs. The report showed that it took an average of 99 days to complete all the legal procedures to register an enterprise. It should be noted, however, that there are a wealth of options other than starting from the ground up. Many people choose to join up with a business that is already established. Others will hire a local fixer to help smooth the process of starting up an operation.Michelle Brown, the founder of Kampot’s Bohemiaz Resort and Spa, notes that she had a close friend living in the country help with the initial process of starting a business in Cambodia. Her associate then came on as a manager and helped find staff when they opened in 2014.Indeed, if you decide you want to try starting a business in Cambodia in either the food and beverage or hospitality sector, you can often find places that are already for sale. Perhaps you want to start a bar, guesthouse or restaurant. Just search business for sale in Cambodia on our site to check out options.‘Unofficial fees’ for doing business in CambodiaUnfortunately, Cambodia still has a reputation for being a place where bribes are a part of the business environment. To be sure, however, things are getting better day by day. Since many processes are quite slow, business owners will sometimes pay unofficial fees to expedite them. Realestate.com.kh does not endorse any form of bribery and recommends full compliance through official channels only.Sole proprietorship in CambodiaDo you want to start a sole proprietorship or a partnership? What licenses will you need? Will you be hiring workers? These are all questions you should be answering before you start the registration process. BNG Legal has this handy guide on their website that you can use as a jumping off point when you begin the process of starting a business in Cambodia.In fact, it wouldn’t hurt to get legal advice from a lawyer in the country. Just a short meeting can often be indispensable for sending you in the right direction. Registering a company in CambodiaBefore starting the registration process you will need:a valid business visaa local bank account with at least $1,000 depositeda certificate of health and a criminal background check from your home countryNote that you should open a bank account with a bank where you can pay government fees such as Acleda, FTB or Canadia Bank.After you have these materials it’s time to start the government registration process. This process will take you through the Ministry of Commerce (MoC), the General Department of Taxation (GDT) and the Ministry of Labor and Vocational Training (MLVT). Luckily, much of the MoC process can be completed online. Refer to the government's guide to registering a Cambodia business for more details.Cambodia business license costWhen the MoC process is complete you will only have two weeks to register as a taxpayer with the GDT. There you can either register for six months or one year as a taxpayer. The fee is $500 or $650, respectively. All documentation from the GDT is usually completed in less than a month.The MLVT process can also be completed—at least in part—online. Note also, that businesses will have to register for the National Social Security Fund here, dependent on how many employees they have.Additionally, there are licences that will be needed. This depends on the sector in which your business operates. If you are starting a guesthouse or restaurant the Ministry of Tourism will be where you go. These licences usually need to be renewed annually.Paying salary tax, profit tax and value-added tax (VAT) is done by the 20th of each month.Securing funding for your Cambodian businessThere are many different ways of getting the capital you need to initiate starting a business in Cambodia. Perhaps you want to scout out investors. Or maybe you want to raise the money yourself or pool funds with a partner. Every industry will have different needs when it comes to initial investments.What kind of business could you start in Cambodia?Traditionally, most foreigners coming to the country start Cambodian businesses in the tourism industry. This means bars, restaurants, guesthouses or tour companies. Many from other areas of Asia also find success expanding their existing operations in manufacturing or production. Increasingly, there are companies springing up in the tech, real estate and financial sectors. This is because the country has reasonably good technical infrastructure and a quickly growing and urbanising population. Make sure to do your research before diving into the country.Finding a space for your Cambodian businessOne of the biggest attractions of starting a business in Cambodia is the affordable real estate here. What’s more, it can be easy to find a space for sale that is already set up for what you need. If you want to start a hotel just search the listings on our site. Looking for a place with everything you need can sometimes be difficult. We recommend consulting the expert assistance of a real estate agent. They can help you zero in on what you need. Of course, if your operation is small you can look at coworking spaces. These are becoming more and more popular in the country and can be an affordable way to get started quickly.Hiring staff for your business in CambodiaHiring staff members is a long and intimate process. However, if it is done right your business will reap the rewards. The Kingdom is disproportionately young, so take this into consideration. A job with the right salary and a possibility of advancement will, hopefully, generate lots of interest.Training can be absolutely pivotal for new employees. Don’t let the cultural divide get in the way, either. If your enterprise is big enough, definitely consider hiring a professional HR manager that can solve any staffing issues.Cambodian offices are usually open for 40 hours a week, but many also work Saturday mornings as well to hit 45 hours a week. The Kingdom has a whopping 28 days of public holiday a year. Many businesses are starting to move towards a less holiday-intensive schedule, but compromises often need to be made. Family is a very important aspect in Khmer culture. Some businesses also choose to add one workday every month to make up for the holidays.Benefits and health insurance are on the rise in Cambodia. However, salary is still one of the most important factors for new hires. There is no hard and fast rule for Cambodian wages. In general, you get what you pay for. Staff with higher skills and more job prospects will command a higher wage. The best way to settle on a fair salary is to do plenty of research. Find out what similar positions in the country are offering. Staff retention is one of the biggest problems you could encounter after starting a business in Cambodia. It’s vital to find the right workers, invest in them and build a strong workplace culture. You can use a staffing agency, job site such as BongThom.com or ask for recommendations from trusted friends. If you plan ahead and emphasise thorough training you and your staff will succeed.Commenting on the rewards and challenges of hiring local staff, Bohemiaz’s Michelle Brown said that seeing her employees grow has been one of the most exciting parts of her experience after starting a business in Cambodia.“It just took some time to adjust to learning how to communicate … the most rewarding thing about what I have created at Bohemiaz isn't the development of the resort but seeing the young girls I employed four years ago blossom into amazing young ladies with real career aspirations and desire to travel and learn,” she said.Buying a business in CambodiaAnother popular option is to buy a business that is already set up. This is especially good if you want to start a hospitality business. Usually, you can find turnkey operations that already have a staff in place, all the needed infrastructure and even a customer base.A few specialty agents operate in the selling of turnkey businesses. One of the major names is Asian Business Brokers. What's more, these agents can also help new owners navigate the laws and requirements to help them get off the ground. Many agents suggest doing your research and having a good plan in place. Watch the video above, Crispian Knowles from Asian Business Brokers says that people need to be fully prepared before they start a business in Cambodia.There are tons of events going on across the country where you can spread the word about your business. Expos and trade shows go on all the time for sectors ranging from real estate and construction to cosmetics and travel. Get your brand out there!Networking with other Cambodia business ownersFellow business owners can be some of the best resources for advice. There are already tons of organisations in the country where you can connect with entrepreneurs from your country. Check out the American Chamber of Commerce in Cambodia (AmCham), BritCham and EuroCham. Their sites have tons of resources and their events are a great place for networking.More informal networks can be found in groups on Facebook and other social media. Finding like-minded individuals will help while you are starting a business in Cambodia. You will eventually get to know other business owners in the area and it can be good to show support for each other. After all, everyone benefits from a growing economy, right?Business Etiquette: Doing business in CambodiaJust like in any other country there are difficult parts to starting a business in Cambodia. You can learn from the mistakes of others, however, and come out ahead. One of the biggest tips you hear from entrepreneurs is to surround yourself with people you trust. Whether it’s business partners, staff or landlords, only rely on people who you truly have faith in. Your business should be like your child. After all, you wouldn’t let just anyone off the street babysit for you, right?Make sure you plan ahead. Do your research. Talk to experts. Ask lots and lots of questions. There is no such thing as too much preparation. Calculate everything out and have a plan in case it all goes wrong. You will thank yourself later.Lastly, and perhaps most importantly, stay flexible. Remember, Cambodia is still a developing nation. There will be setbacks and there will be headaches. If you can roll with the punches you will be that much better off.Brown mentioned that one of the biggest challenges she has faced has been with bank and government contracts. She urged business owners to be totally sure of all the details before signing on the dotted line.“Initially it was also difficult to get a regular supply of imported products, however in the last couple of years the supply chain has vastly improved and the range of western products in Kampot is now amazing,” she added. Creating a successful Cambodia businessGrowing a successful business isn’t easy. It definitely is possible, however. If you work hard you will have something to show for it. Surely you will learn loads about yourself and about this wonderful country.Don’t forget that Realestate.com.kh can help you nearly every step of the way, either. Besides helping you find real estate, our news section can keep you up to date on the sector. Click over to our reports section to check out surveys and reports. Additionally, we have other guides like this one that can help educate you and improve your skills.If you liked this guide you'll love our Investment Guide 2019. Download it for free and learn everything you need to know to start a business! Article by:
Can a foreigner buy land in Cambodia?
Can a foreigner buy land in Cambodia?
June 6, 2022, 10:52 p.m.
Realestate News
Foreign direct ownership of land is prohibited by Cambodian law. However, there are legal mechanisms that allow foreigners and foreign entities to indirectly own and operate land within the Kingdom.Brief History of Land Ownership in CambodiaPrivate ownership of land only became possible in 1992 when the Cambodian Government passed the land law. The local Sangkat issue Soft Title to Cambodians, which is not a full guarantee of ownership and has thus been being exchanged in favor of the nationally-recognized Hard Title.In 2001 the new Land Law came into effect, further strengthening an individual’s right to property ownership and since then, many changes have been made in order to accommodate a more dynamic market that would benefit the economy and the people.It may seem like a lot to take in, but talking about the land ownership law in Cambodia doesn’t always have to be a heavy topic. Here, Realestate.com.kh breaks down things you need to know to be able to invest inland.Since the redistribution of land in 1992, ownership of land can now be held in Cambodia by means of the different titles available. These include hard titles, soft titles, strata titles, and LMAP titles. These serve as official proof of ownership in the Kingdom. But what’s interesting about Cambodian land titles is that even if some titles are recognized nationally, some titles are also only recognized at the local government level.Foreign ownership mechanisms for land in CambodiaThe Land Law of Cambodia prohibits foreigners from directly owning property in the country except through a strata title. But strata titles for residential units are only usually made in co-owned buildings and not land. Fortunately, there are ways foreigners have been able to secure land in Cambodia.Via a Khmer nominee or licensed trust companyThis method will require foreign investors to “nominate” a person with Cambodian citizenship to be the legal owner of the land to be purchased. A ‘trust agreement’ will be formed between the two entities wherein the nominee will agree to hold the property in their name. This method is arguably the most common form of owning land for foreigners due to its straightforward approach and low associated costs. However, it is not a method advised if an investor does not have anyone they can trust to hold their investment.Alternatively, investors looking to go down this route can do so through a licensed trust company in Cambodia. In January 2019, the Royal Government of Cambodia promulgated the Trust Law (the “Trust Law”) strengthening the regime of trusts in the legal system which commenced in 2013. Trust companies allow foreigners to legally own land in Cambodia in their stead. This method is advised for investors who are looking for a licensed service provider liable to legal authorities.Forming a land holding companyA Land Holding Company (LHC) can be formed by a foreigner looking to buy land through a joint venture with a Cambodian. By law, the foreigner has to take up the minority stake up to 49% while the Cambodian partner takes up the majority stake at least 51%. This may seem like a significant caveat for a foreigner looking to go this route, but control of the LHC may fully be granted to the minority stakeholder (the foreigner) through company bylaws, special power of attorney, or other legal instrumentations.The only real drawback of this approach is the cost of registration fees, administration costs, and tax burdens levied on the company and property.Government concessionLand concessions are a means to owning property as a foreigner under an agreement with government authorities. This allows foreigners to legally occupy, utilize and exercise rights over the land in question.The Cambodian government usually grants these concessions through Economic Land Concessions (ELC) and are usually allocated for agricultural and industrial developments. These concessions can be extended through a long-term leasehold. Investors must apply for ELCs through the Ministry of Agriculture, the Council for the Development of Cambodia (CDC), and local provincial authorities will then approve the application after investigating the social and environmental effects of the concession.Once initial approvals have been met, the application will go to the office of the Prime Minister where it will be endorsed to the Ministry of Agriculture and become a formal concession agreement. This process may take anywhere from 6 to 9 months.Marrying a CambodianAnother straightforward way of owning land that is not too dissimilar to the previously mentioned nominee structure. Foreigners married to a Cambodian are allowed to purchase land in the Kingdom, however, the name on the land title will only have the Cambodian spouse's name.If you wish to marry a Cambodian, Realestate.com.kh advises you to consult the Cambodian embassy in your home country or consult your home country's embassy if you are already residing in the Kingdom.Becoming a Cambodian citizenThe land ownership laws of Cambodia make the right to own land in their name exclusive to Cambodian citizens. Fortunately, like most countries, it is possible for a foreigner to acquire a Cambodian citizenship, making it arguably the most direct, and consequently, most secure way of owning land in Cambodia. If you wish to pursue this route, you can check B2B Cambodia's guide below.How to obtain Cambodian citizenshipSo, What Kind of Title Do I Need to Get?Hard titles are the strongest type of proof of ownership. It’s given by the Land Management and Planning Office. It contains information that’s recognized by the Ministry of Land and the cadastral office at a national scale. A transfer tax of 4% is paid when a property with a hard title is sold.A Strata Title is also a form of a Hard Title but is most commonly given on newer developments. Strata title holds that foreigners are not allowed to acquire a grounded unit and that foreign ownership is limited to 70% of units in any co-owned building.Soft titles are the most common issued titles in Cambodia. It’s registered and only recognized at the local government level and given by the district office.Land Management and Administration Project Title are considered the safest kind of land title because it uses GPS to allocate land plots. This accurately shows the boundaries of purchased land.How Do I Know What Type of Title I Have?Soft titles typically refer to three documents that can show proof of ownership. These are the application for land occupation, a local government acknowledging the letter of transfer, or a simple private sale-purchase agreement.An application for land occupation is the request made by the possessor of land to the local authorities. A letter of transfer that’s acknowledged by local authorities is a document of transfer that the Chief has acknowledged and signed. While the simple private sale-purchase agreement is an agreement made only between the buyer and seller.Hard titles also refer to three certificate types. These are the Certificate of Land Use and Occupation Rights, Certificate of Immovable Property Possession, and the Certificate of Immovable Property Ownership.Certificate of Land Use and Occupation Rights are called “chicken feather titles” because it has an image of a feather printed on them. This refers to titles issued to owners before the enactment of the land law.The Certificate of Immovable Property Possession is given if the land registration was initiated by an owner in an area where the systematic land registration hasn’t been conducted yet by the government. This is known as “sporadic land registration”. This document usually doesn’t have the map of the property included.The Certificate of Immovable Property Ownership is given after a systematic land registration by the government. Unlike the Certificate of Immovable Property Possession, it has a map showing the land’s location and boundaries.If you are unsure of what the different property titles are, you can learn more in our guide to property titles.Guide to Property Titles in CambodiaWhat if I Want to Get a Hard Title For Security?In a recent breakfast meeting organized by Sciaroni & Associates, Sereyrath Kiri -- an associate of the firm -- saying that soft titles can be made into hard titles via a sporadic land registration. Kiri also mentioned that the cost to do so depends on the location and size of the property.How Do Foreigners Legally Protect Their Land Ownership?Locals may be more secure in just getting a Hard Title and avoiding scams. Foreigners, on the other hand, will need to deal with a few more security details for them to safeguard their land. But it’s not as complex as people think.When a property is owned through a Khmer nominee, foreigners should enter a nominee agreement with the Cambodian citizen. The Khmer nominees should also grant foreigners a long-term lease. A mortgage should be made and registered on the title. Foreigners should also hold the original title. To prevent any misunderstandings in the event of an accident or death, the nominee should also prepare a will or supporting documents.Should ownership fall on a landholding company, it is important to enter into nominee protection documents. The company should be required to grant the foreigner a long-term lease. Similar to the first scenario, a mortgage should be taken and registered on the title, and a will or supporting documents should also be prepared.Like most countries, laws in Cambodia continue to evolve to accommodate the demand of both local and international investors. So, knowing these things and keeping yourself updated may keep you from a whole lot of trouble in the future and even bring you a proper return of investment.Looking to buy land in Cambodia? Click here
Overview of property taxes in Cambodia
Overview of property taxes in Cambodia
June 7, 2022, 6:36 a.m.
Realestate News
Property Buyers & Sellers Advice
Gaining a basic understanding of property taxes in Cambodia is important for property owners, sellers, and buyers in the country. Knowledge of these important obligations will not only make transactions easier but also help everyone avoid unnecessary costs and penalties.This guide is designed to give you a basic understanding of obligations so you don’t go in blind into Cambodia’s ever-expanding property market!Overview of Property Taxes in Cambodia:Cambodia has a 0.1% Property Tax applied on Immovable PropertiesProperty Taxes must be paid every year around SeptemberProperties below $25,000 (100 Million KHR) are exempt from Property TaxAgricultural land, industrial, and state-owned lands are exempt from Property TaxLocal tax offices have a valuation matrix called the Tax Base for specific property types and sizes within their jurisdiction, this factors into the final Property Tax that has to be paid.How much is Property Tax in Cambodia?Property taxes in Cambodia are officially referred to as “Tax on Immovable Property” (TOIP) and levies an annual tax of 0.1% on properties that have a value of more than $25,000 (100 million KHR). The term “Immovable Property” includes plots of land, infrastructure on land, and buildings.NOTE: Properties valued under $25,000 are exempt from paying the Property TaxProperty Tax is generally calculated by the following formula:(80%*(tax base)-$25,000)*0.1% = Property TaxSample calculation:Mr. Ivanov owns a reinforced concrete building with 3 floors with each floor having 15m x 25m of floor size. Mr. Ivanov consulted with the Property Valuation Commission and retrieved the following Tax Base relevant to the property:Land price per sqm$1,000Ground floor per sqm$250First-floor per sqm$200Second-floor per sqm$150 Mr. Ivanov’s 3-storey building’s property tax can then be calculated like this:Land price25m x 40m x $1,000$1,000,000Ground floor15m x 25m x $250$93,750First-floor15m x 25m x $200$75,000Second-floor15m x 25m x $150$56,250 Tax Base of Mr. Ivanov’s property: $1,225,000. Let’s take this Tax Base and apply the Property Tax formula.(80%*($1,225,000)-$25,000)*0.1% = $955 will be the Property Tax Mr. Ivanov has to pay every year for his 3-storey building.What is a Tax Base and how is it calculated?A Tax Base is a price per square metre for a certain property type assessed by the Ministry of Economy and Finance. Here is a table of the Tax Base for properties located in Daun Penh, Chamkarmon, 7 Makara, and Toul Kork as of 2018:TAX BASE AS OF 2018TYPE OF BUILDINGPart of buildingBuilding age less than 10 years (USD/sqm)Building age over 10 years (USD/sqm)Reinforced concrete frameworkSemi-permanent structureCondoReinforced concrete frameworkSemi-permanent structureCondoBasement$200$200$200$180$180$180Ground floor (E0)$250$120$600$200$100$500First floor (E1)$200$100$600$150$80$500Second-Fifth floor (E2-E6)$150$80$600$100$60$500Six-Tenth floor (E6-E10)$700$700$700$600$600$600Eleventh floor onwards (E11)$800$800$800$700$700$700 Registration Tax (a.k.a. Transfer/Stamp Tax)The Registration Tax (a.k.a. Transfer/Stamp Tax) is the tax paid for transferring property ownership or right occupancy of land that does not have a standing building on top. This is a 4% tax derived from the Tax Base of the property in question.This property-related tax is crucial to know if you’re someone looking to buy or sell property in Cambodia. Sellers are generally the ones shouldering the transfer tax, though it can go either way - this is best discussed in clear terms with whoever you may be transacting with.NOTE: Properties transferred to direct kin via inheritance are exempted from the Registration Tax. The relevant Prakas states “transfers between spouses, parents, and children, or grandparents and grandchildren, will no longer require this tax”Calculation formula: (Tax Base*4%) = Registration TaxSample calculation: ($100,000*4%) = $4,000 Registration TaxProperty Tax on Rental PropertyLocals and foreigners who own and rent out their properties need to pay Rental/Income Tax every year. A foreign investor who buys property here and rents it out needs to pay 14% of the gross rate annually while locals have to pay 10%.Property Tax on Unused LandThe Unused Land Tax is a 2% tax levied on bare plots of land with no building constructed and abandoned landed properties in cities like Phnom Penh. The Unused Land Tax is determined by the Unused Land Appraisal Committee (ULAC).How is Property Tax paid in Cambodia?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.For unregistered properties, it’s imperative that owners contact the local tax office their property is in. The following documents will be required for registration:Tax Form PT01 - a form issued by the General Department of Taxation (GDT) that asks owners to outline the specifics of their property.Tax Form PT02 - another form issued by the GDT which serves as a tax application form.National ID Card, Birth Certificate, or PassportResidence Book or Family Book or Residency LetterOther documents may be required depending on the status of those involved in the transaction. We highly encourage seeking legal assistance for more specific matters.Capital Gains Tax in CambodiaThe Capital Gains Tax in Cambodia is a flat 20% rate. The Capital Gains Tax was promulgated through Prakas 346 in April 2020 and was initially to be enacted in July 2020. But the advent of COVID-19 delayed its implementation to January 2022 to keep Cambodia's property market activity going throughout the pandemic.Contrary to what most people perceive: The Capital Gains Tax in Cambodia is not exactly new; businesses in the Kingdom have always paid capital gains. The material difference now is that it applies to individuals, especially those looking to sell immovable property a.k.a. real estate. A more thorough discussion of Capital Gains Tax in Cambodia can be found here.The Capital Gains Tax in Cambodia can be calculated in 2 different ways:Actual Expense Deduction MethodThis method takes the sales proceeds and subtracts the expenses the seller made on that property to get the actual Capital Gains Tax to be paid. These deductibles can be the purchase cost, consulting fees, registration tax, commissions, and even advertising. These actual expenses are deducted from the sales proceeds and 20% of the difference will be the Capital Gains Tax to be paid.There are more applicable deductibles so we highly suggest you keep tabs on the expenses you made in your property if you are planning to sell in the future.Determination Based Deduction MethodThis method takes 80% of the sales proceeds and subtracts it from the whole sales value. The result will be the Capital Gains and 20% of it will be the Capital Gains Tax to be paid. This method is highly beneficial for property owners who bought low and are planning to sell high.Capital Gains Tax in Cambodia is expected to be enforced by January 2022. Once the law is in effect, we highly encourage keeping tabs on your expenses on the property to properly assess which method applies best in your case.Looking for property in Cambodia? Let us help!Article by:
Sihanoukville ranks amongst top global holiday destinations for 2018
Sihanoukville ranks amongst top global holiday destinations for 2018
June 6, 2022, 5:06 p.m.
Realestate News
New York Times has released their starter kit for escaping into the world, namely, through releasing their renowned list of the ‘52 places to go in the world’. The beaches of Sihanoukville ranked at number 13 on the list amongst other top destinations such as New Orleans in Louisiana taking the top spot, followed by Colombia, and  Basilicata in Italy. - see Realestate.com.kh's The Ultimate Guide To Sihanoukville for a complete overview of Sihanoukville.As the list eluded to, Cambodia has been notoriously famous for it's Angkor Wat Temples in Siem Reap - which still remain as the biggest tourist attraction in Cambodia. In 2015 Angkor Wat was labeled by Lonely Planet as the number one tourist destination in the world.However, adorned with white sand beaches, accessible islands, a host of developments and new infrastructure initiatives in play- allowing for ease of access to the seaside province- it seems that Sihanoukville's tourism potential is garnering well deserved global attention.Sihanoukville International Airport has been undergoing major renovations, whilst the construction of a new terminal promises to increase capacity to 500,000 passengers per year. Once completed, Sihanoukville Airport is set to be the kingdom's largest airport. Already new flight routes have been added, with ongoing international flights from China, Vietnam, and Malaysia.Further to this, Grand Union Group, the developer of Dara Sakor Seashore Resort Casino in Koh Kong received permission in 2017 to build another airport. Although Koh Kong is not directly in the province, it still represents another key point of access which is within a few hours driving distance to Sihanoukville.Construction is anticipated to commence on this airport in early 2018 and will involve a total investment of 500 million USD.In terms of the hotel scene- both on the shoreline and the multitude of surrounding islands, including the popular Koh Rong, Koh Rong Sanloem, Koh Russey and Krabey Island- this has exploded over the last few years.Of special note is Six Senses on Krabey Island, a mere 20-minute boat transfer south of Sihanoukville, and Alila Villas on Koh Russey, with both resorts opening in 2018. Both will offer the full island experience, with snorkeling, diving, and all other beach amenities for tourists to enjoy.  Besides hotels, the potential for mixed-use and residential developments has caught the eye of major international developers. D’Seaview, Blue Bay, The SeaGate Suite, Royal Bayview and Sunshine Bay are amongst the major projects which are currently under construction- and will bring luxury facilities, and a new skyline to the province.In addition, infrastructure initiatives such as a direct highway between Phnom Penh and Sihanoukville improved internal roads, port expansions and Cambodia's largest Special Economic Zone (SEZ) are all factors contributing to Sihanoukville's status as a 'boomtown’ for attracting both tourists and investors alike.   Search properties for sale in Sihanoukville and current properties for rent in Sihanoukville!
The first wholesale supermarket of Cambodia will open by the end of the year
The first wholesale supermarket of Cambodia will open by the end of the year
June 7, 2022, 7:15 a.m.
Realestate News
A groundbreaking took place on Mong Rithy Street, Corner Road 1003 at Khan Sen Sok, surrounded by a group of workers and engineers, still actively working. This new construction site will soon be home to the first  wholesale supermarket in the country, known as Makro.According to Cambonomis, Makro supermarket will be built on an area of approximately 5 hectares with a height of 2 floors. It will be located in Sen Sok district, near Aeon Mall 2 (AEON), Japan supermarket.The upcoming supermarket is a joint venture between the company, LYP Group, which owns 30 percent., And CP Group owns 70 percent. This project will employ over 200 employees, working for the rising shopping mall.The local media have reported that yesterday's (29th of May) groundbreaking ceremony, the Mayor of Phnom Penh Mr Pa Socheatvong said "The establishment of supermarkets are within the government’s project. It's good to know when we have an upcoming wholesale supermarket so that the selling price of goods will not changing too fast, avoiding inflation"Makro is set to be the largest warehouse shop in the Kingdom which will bring Thai products to local consumers.In the past years Cambodia has seen many international projects of shopping centers coming into the market; and after the Japanese investments of AEON Mall and AEON Mall 2, it is now the turn of the Thai CP Group. Let’s wait and see who will step in next!Please find out development news in Cambodia on Realestate.com.kh
Houses for Sale in Sihanoukville: Home Buyers Guide
Houses for Sale in Sihanoukville: Home Buyers Guide
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
Sihanoukville is one of the major tourist destination of Cambodia and is seeing a rapid economic growth. Currently, tourism and real estate are the main drives of its development and investors are rushing here not to miss out on the benefits of investing in the housing and hospitality sector.What are the types of Houses for Sale in Sihanoukville?Currently, the housing sector in the province is growing significantly due to the increasing demand of the tourism sector. Several kind of residential properties can now be found such as flats, villas, apartments, and resorts for tourism or business.Borey for sale in SihanoukvilleBoreys are regarded as a gated community occupied by people looking for a modern living space, and they usually offer different types of residential units such as apartments, villas, and shophouses. Borey projects available in this area include Borey BS, Borey Peal City, and the Borey Hillton Park Villa. These borey projects typically start with 1-bedroom with a starting price of $60,000.Condo for sale in SihanoukvilleAs in the rest of the country, the supply of condo projects in Sihanoukville is growing too.One of the prime condo projects that saw an early investment opportunity in Sihanoukville is D'Seaview Condominium project. The development is located only1 km from the coast of Sokha beach and the fresh air and the beautiful natural scenery provides comfort and great atmosphere to those living there. Residential units range from 1 to 3 bedrooms and are suitable for those looking for a modern lifestyle by the beach.Another condominium project in this area is The Royal Bayview which is located along the coast of Independence​ Beach. The project will feature 1.344 units and will also have a 3-storey shopping area. The Royal Bayview is expected to reach completion by the end of 2019.Another project located near by is The Blue Sky Tower, which is located in Sangkat 2, with a starting price of $40,000.  The Nest Apartments Seaview Condominium is also rising on the in the area and is located along the coast of Hawaii beach. It has 9 storeys and has unit sizes ranging from 30 to 126 square meters with a price range of $28,500 to $52.500.It is clear therefore that the number of residential condominium projects rising in the coastal areas is growing very fast.Why are residential developments in Sihanoukville attractive?Currently, a number of infrastructure projects are under construction such as The railway system, the airport expansion, the Sihanoukville port development. This development will not only help boost the growth potential of the region and provide confidence for investors, but it will also ease the transport of materials and reduce the price of condos in the area. In addition, Sihanoukville is becoming very popular due to its location, and clean beaches.As mentioned earlier, tourism is also growing very fast: the Department of Tourism expects tourist numbers to run up to 3 million annually by the end of 2020 -- 1 million of international arrivals and 2 million locals.What are the potential areas for investment in Sihanoukville?Sangkat 4 seems to be one of the best options for residential area. It is located alongside the beach and includes the Ochheuteal Beach and stretches for 4 kilometers. It is located along the coastal road towards Serendipity beach and is a very popular area because of its convenience in terms of transportation and international trade.There is no doubt that Sihanoukville is becoming increasingly popular; whether you are looking for a vacation house or looking to relocate by the beach, is it certainly worth to check what the market is currently offering.Find out more about new developments in Sihanoukville on Realestate.com.kh now!Take 2 minutes to complete our survey and win and IPhone 8!
5 Real Estate Negotiation Tips That Work!
5 Real Estate Negotiation Tips That Work!
June 6, 2022, 5:07 p.m.
Realestate News
Property Buyers & Sellers Advice
The following are real estate negotiation tips to help you think more laterally in your real estate negotiations and achieve better outcomes.After all, why meet in the middle when both parties can achieve their goals? Have you ever negotiated like this?Car salesman: “The price is $5000.”You: “I’m willing to pay $2500.”Car salesman: “I can give you a small discount, how about $4000.”You: “What about $3000.”Car salesman: “Ok, I spoke to my manager $3500 is our final offer.”You: “Done. I’ll take it.”In the above example you and the car salesman start with a $2500 gap and eventually ‘meet in the middle,’ almost. This is the most common form of negotiation and is known as ‘positional bargaining’. Unfortunately positional bargaining generally results in poor outcomes for both parties because everyone gives up the same amount and, therefore, neither party gets what they really want.Thankfully there are other ways to negotiate! Follow these simple real estate negotiation tips and watch your odds change:1. Consider the objectives of all of the parties:As a property buyer, the most important person in the transaction is the seller and you should focus on their desires first. Do some research with the agent and find out what is really motivating them to sell. Especially focus on non-monetary considerations. You would be surprised how often the sale of a home or other property is caused by something other than money. For example:The seller needs to move from Phnom Penh to another country urgently: Perhaps offer shortened settlement terms during your real estate negotiation, for example 30 days. Or offer to pay a 50 percent deposit immediately - and the balance over a longer period.The seller is building a new home to move into: Offer to rent the seller the property after the purchase on a month-to-month basis until their new home is complete.The wife of the seller is reluctant to sell the family home: In the real estate negotiation, offer to have a professional photographer to come in and take portraits of the family in the home before they move out. This will give the wife some comfort as she then has a permanent memento of the home.2. Don’t forget the real estate agent:Remember, a big part of any real estate negotiation and the ultimate purchase is the real estate agent. The agent represents the interest of the seller, but they are also self-motivated. Therefore, it’s critical to have the agent on your side in any real estate negotiation so that they put your offer in the best possible light to the seller. For example, if two offers are equal on a financial basis, the agent will likely influence the seller to accept the offer from the buyer they prefer. There are a range of things you can do to improve your real estate negotiation tactics with the real estate agent:Promise the re-sale of the property to the agent.Offer to appoint the agent as the rental manager of the property.Offer the agent a written, or even video, testimonial regarding their great service, if the sale is a success.Promise to give the real estate agent a referral to all of your friends should you be the successful buyer.3. Trust your judgment and make genuine offers:There is a saying in real estate that ‘time kills deals’ and in a fast paced property market such as Phnom Penh, Siem Reap and Sihanoukville this is definitely the case. As such, we suggest researching the real estate market thoroughly and making an offer that is at, or very close to, your maximum.  By making an offer for what you know the property is worth, you have a strong chance of buying the home, land or commercial property, before other buyers swoop in and offer more. Remember this negotiation tip and don’t get caught out offering less than you know the property is worth - if this occurs you are likely to miss out as more aggressive buyers pay more and close the deal.4. Loose lips sink ships:Never let the other party know how much you have available to spend or what is motivating you to buy during any real estate negotiation; this risks the seller using these great negotiating tactics on you! This is a key negotiation tip in any situation, not just real estate.Similarly, given so many properties in Cambodia are marketed as “Price On Application”, it is very important to always make the seller name a price first before beginning any real estate negotiation. With that information you are well placed to make a counter-offer in proper context of the seller’s price. If a buyer makes the first offer, they are in danger of over-pricing the property from the start and that can only ever result in a bad deal.5. Cash is king:Sellers hate any uncertainty in a deal and offers made ‘subject to finance’ can be a deal breaker when a competing offer is for cash – even if the offer is for less. This is why it’s critical to have your finance arranged and be ready to settle on a deal very quickly once the price is agreed. See the bank BEFORE you see the seller! Cash is always king in real estate negotiations, in any country, but especially in Cambodia. Being able to offer cash gives the seller absolute confidence in your offer and this is often worth more to a seller than a higher offer that may never settle.Keep these real estate negotiation tips up your sleeve, and you will secure you dream property in no time; on YOUR terms, not the sellers!Want to learn more about how you can make money by investing in real estate wisely? Get on Realestate.com.kh today, the best source of information for property buyers & Sellers in Cambodia.Search properties for sale in Cambodia and current properties for rent in Cambodia!