Legal restriction on foreign land ownership

Pursuant to the Cambodian Constitution (article 44) and the Land Law only natural persons or legal entities with Khmer nationality may own land in Cambodia. A legal entity has Khmer nationality when at least 51% of its shares are held by natural persons or legal entities with Khmer nationality.
Subject to certain exceptions, foreign nationals or companies may own units in a co-owned building, except for the ground floor and subject to a foreign ownership limit of a total of 70% of the area of any co-owned building.
There are a number of innovative solutions that are offered to foreign investors with the aim at circumventing the legal restriction of foreign land and ownership. A foreign investor, whether an individual or a legal entity, may consider  (i) establishing a joint venture with Cambodian partners , (ii) incorporating a local landholding company with a local partner (51% Cambodian owned), (iii) entering into a leasehold agreement with private local owner, (iv) entering into land concessions granted by the government, and (v) applying for Khmer nationality through naturalization (or ‘’donations‘’ to further the restoration and rebuilding of the Kingdom of Cambodia’s economy). Becoming a Khmer citizen gives foreigners the right to own land and thus encourages foreigners to become citizens.