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

 

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