Difference between Freehold and Leasehold Property in Cambodia
When investing in real estate in Cambodia, understanding the distinction between freehold and leasehold property is essential. These two types of ownership have different legal rights, benefits, and limitations—especially for foreigners. Whether you're a first-time buyer or an experienced investor, here's a breakdown of the key differences to help you make informed decisions.
1. What Is Freehold Property in Cambodia?
Freehold means full ownership of the property and the land it sits on. In Cambodia, this is the most secure and permanent form of ownership—but it’s mostly restricted to Cambodian citizens.
🔑 Key Features:
The owner has full legal title to the property.
Ownership is indefinite—it can be passed on, sold, or transferred freely.
Includes rights to modify, lease, or develop the land.
Recorded at the Ministry of Land Management, typically with a Hard Title or LMAP Title.
🚫 For Foreigners:
Foreigners cannot directly own freehold land in Cambodia. However, they can own freehold condominium units above the ground floor (via strata titles) in co-owned buildings where foreign ownership does not exceed 70%.
2. What Is Leasehold Property in Cambodia?
Leasehold means you are leasing the property for a set number of years—you don’t own it outright, but you have legal rights to use it.
🔑 Key Features:
Common lease terms are 50 to 99 years, with options to renew.
The property reverts back to the owner at the end of the lease term unless extended.
Lease agreements can be legally registered at the Land Office for additional protection.
Foreigners can lease land or property directly and build upon it.
3. Main Differences at a Glance
Choosing between freehold and leasehold in Cambodia depends on your citizenship, investment goals, and risk tolerance. While freehold offers more permanence, leasehold can still be a powerful tool for foreign investors—if structured correctly.
At ERA Cambodia, we help both local and international clients navigate these options safely and strategically. Whether you're buying your first condo or exploring a long-term land lease, our experts are here to guide you with confidence.
Contact ERA Cambodia for trusted property consultation today.