How foreigners can legitimately purchase, improve and maintain property through Freer Properties
Background – Cambodia law
Five options for foreigners to buy property in Cambodia:
- Forming a Company in Cambodia with a Cambodian Citizen (>50% Cambodian shareholding)
- Obtaining Cambodian citizenship via investment in Cambodia or by marriage
- Buy property with a Cambodian citizen’s name and puitting protective measures in place (such as hypothee or long term lease)
- Long term rental
- 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
2 comments
ปั้มไลค์
Like!! Really appreciate you sharing this blog post.Really thank you! Keep writing.
Freer Properties
Thank you for the positive feedback!