One minute to understand the whole process of buying a house in Cambodia.

Cambodia’s rapid economic growth has triggered a real estate boom, investors from Japan, Singapore and China to enter the market; as a new real estate investment market; of course, there is a rich return on investment.

Cambodia’s real estate different from domestic transaction, when we enter the local market, must grasp the local real estate law and transaction methods, be able to come and go freely and invest easily.

1. Distinction of property rights

Land property rights and housing property rights can only choices one.

1. Locals purchase row houses (connected to the ground), only land property rights have no building property rights.

2. Foreigners hold property rights above the 2 floor and floor and only register the property rights of buildings without land property rights.

The real estate certificate is the complete property right. The rights of foreigners are identical with those of their own nationals. In the future, if it is rebuilt, it will be punished according to the proportion of land area on the real estate certificate.

2. Distinction of proof of property

The two types of property rights recognized by Cambodians are soft card and hard card.

1) [Hard Card] refers to the form of ownership recognized by the central government based on the land law, which is guaranteed in practice and law.

2) [Soft cards] are issued by local governments. In practice, they are evidence for asserting this property right.

3. Classification of Hard Cards

1) Real Estate Holding Certificate (or Land Use Certificate)

2) Real Estate Ownership Certificate (Housing Use Certificate)

Both of them are certificates of landlord registration in accordance with the Land Law and printed on official good hard paper, which can be mortgaged to banks for loans.

4. Time Limitation of Alien Property Ownership

1) "Hard Card" property rights issued by the Central Government of Cambodia are permanent property rights.

2) The property rights of the soft card issued by the district government or the district government shall be subject to the actual registration period.

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Understanding the above information, I believe that you have a clear outline of the relevant laws and regulations of Cambodian real estate, then in the actual local real estate sales, what needs attention?

1. Property Right Certification Processing

1) Developers are obliged to handle the property rights documents (soft cards) issued by the district government or the district government to the buyers.

2) When the purchaser needs to register the property right (hard card) after the delivery of the house, the purchaser shall pay 4% of the relevant documents and taxes stipulated by the Cambodian government.

2. Taxes and fees required to buy a house

1) 10% VAT tax (VAT paid by developer)

2) If you need a hard card, you have to pay registration tax (4% of the house purchase contract or according to the provisions of the Cambodian government at that time).

3) The annual real estate tax is 0.1% (calculated according to the provisions of the Cambodian Government)

3. Procedures to be handed over

1) Handprint handover

2) Write a power of attorney (entrust a company to rent or sell on its behalf)

3) Bank account opening (including network account opening). (Money should be exported from Phnom Penh's bank through network, and local bank network authorization signature is needed.)

4) Payment of House Payment

5) Six month’s management fee and basic water and electricity fee are paid in advance. The tenant pays the management fee and water and electricity fee after the house is rented on behalf of the tenant. The basic water and electricity fee is refunded more or less.

6) Signing Household Convention and Property Management Provisions

7) After the completion of the formalities for house delivery, it may be stipulated that the tax payment fee and agency fee of the completed documents shall be handled with a hard card and the ownership registration formalities shall be completed.

4. Fees to be paid when a house changes hands

1) The buyer must pay 4% of the announcement price of the Cambodian government as the housing transaction tax or as stipulated by the Cambodian government at that time.

2) A commission based on the market is required if an intermediary is sought. (Generally 3%-5%)