Buying property through Freer Properties

How foreigners can legitimately purchase, improve and maintain property through Freer Properties

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 April 2019 is a Khmer-owned real estate company offering quality property sales and letting in Phnom Penh and beyond.

• Free valuations to ensure each property is marketed right the first time
• Basic legal advice and referral (to help clients work with challenging foreign ownership laws)
• Advice and information to help newcomers explore Phnom Penh safely and meaningfully

We understand buying, selling and renting property requires more than knowing a budget and scrolling through a database. It is an important decision and we 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 automatically ceased if non-payment
• Property purchased under ‘Freer Holdings’ and shared with buyer
• Unanimous agreement of all shareholders required to sell or modify the property

Shareholder Agreement

• Company 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 owned 51% by the holding company / 49% by foreign owner
• 100% shareholder resolution required to sell / modify property

About Cambodian real estate

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