Purpose: to provide a framework to allow foreigners to legitimately purchase, improve and maintain soft and hard titled properties in Cambodia.

Overview

  • Background – laws in Cambodia
  • Background – Freer Properties
  • Liability / Indemnity / Service Agreement
  • Shareholder Agreement
  • Costs (set up and ongoing)
  • Other services (construction / maintenance / AirBnB / property management)

 

Background – Cambodia law

Five options for foreigners to buy property in Cambodia:

  1. Forming a Company in Cambodia with a Cambodian Citizen (>50% Cambodian shareholding)
  2. Obtaining Cambodian citizenship via investment in Cambodia or by marriage
  3. Buy property with a Cambodian citizen’s name and puitting protective measures in place (such as hypothee or long term lease)
  4. Long term rental
  5. Purchase of strata-titled / condo property

The Cambodian government unveiled new ownership laws in co-owned buildings in 2010:

  • Foreigners cannot own ground floor properties
  • Total foreign ownership of private units must not exceed 70%
  • Does not apply to properties <30km of national borders (some exceptions e.g. SEZ)

Background – Freer Properties

Freer Properties, established in May 2018 (ex-Yong Yap) is a Khmer-owned fresh company focused on offering quality property sales, letting and management in Phnom Penh and beyond.

  • Free valuations (ensuring each property is marketed right first time, every time)
  • Basic legal advice and referral (to help clients work with challenging foreign ownership laws)
  • Property management, construction, maintenance and AirBnB
  • Advice and information to help newcomers explore Phnom Penh safely and meaningfully

We understand selling, renting and managing property is more than knowing a budget and scrolling a database. We know it’s an important decision and take pride in understanding our clients’ needs, explore all possible options and cross-match the right property.

 

Service Agreement

A ‘Service Agreement’ would cover the holding of shares to enable property ownership / control:

  • Real Estate / Investment strategy services
  • Includes an upfront (non-refundable) payment
  • Built-in checking mechanism for payment of taxes and other legal obligations
  • Contract is automatically ceased if non-payment
  • Property is purchased under ‘Freer Holdings’ which is shared with buyer
  • Unanimous agreement of all shareholders is required to sell or modify the property

 

Shareholder Agreement

  • Company is established to enable shareholding structure (approx. cost $2,500)
  • Monthly tax-filing services
  • Land tax is a company liability (0.01%)
  • A mortgage could be established by a foreigner on the property (condos only)
  • The property would be owned 51% by the holding company / 49% by foreign owner
  • 100% shareholder resolution is required to sell / modify property