Trust services are special financial, legal, and management solutions that help protect, manage, and distribute assets for individuals, families, and organizations. In Cambodia, a property trust allows you to transfer ownership of a property to a trustee, who will manage it on behalf of the beneficiary or beneficiaries.
The introduction of the Trust Law in 2019 marked a significant shift, enabling foreigners to own land through trust structures. This law allows foreign investors to appoint a licensed trustee to hold legal title to the property while the investor retains beneficial ownership, ensuring compliance with Cambodian laws and providing a transparent and secure investment mechanism.
In the last five years, (as of the 20th of Feb 2025), over $1.7 billion has been invested in Cambodia through trusts, with 90% of that going into real estate. This growth is part of Cambodia’s overall economic development, with the economy expected to grow by more than 5% in 2025.
Trust Service
A property trust offers foreign investors a practical solution for investing in and owning property in Cambodia. By appointing a trust company, investors can hold and manage their assets under a commercial trust. The trust company assumes the responsibility of holding the property on behalf of the client, ensuring that the property is managed and maintained in line with the investor's best interests.
This arrangement provides a secure and legally compliant way for foreigners to own property in Cambodia, while the trust company oversees the management and protection of the asset.
In Step 1 of the property purchase process, the required documents vary depending on whether the buyer is an individual or a business. For individuals, a copy of the Hard Title Document, along with the ID or passport of both the landowner and the buyer, is needed. Additionally, the bank account number and the property location should be provided.
For businesses, the required documents include the Memorandum and Articles of Association, Board of Directors or shareholder IDs, Patent Tax, and Tax Registration Certification. An authorization letter and a business license (if applicable) are also necessary to complete the process.
Payment Structure
- The "Due Diligence Service" is an essential step provided to clients before property acquisition. This service ensures that the property being considered is in good legal and physical condition and is not located within any restricted or non-compliant zoning areas.
It includes a thorough examination of the property's ownership history, checking for any existing disputes, that may affect the transaction, verifying the property’s legal status, and confirming that all relevant permits, tax payments, and documentation are up to date.
Note: This is a one-time fee that you pay only at the start of the process.
This is an ongoing fee that is paid regularly, usually monthly or annually, to cover continuous services such as property management, maintenance, or other long-term costs associated with the property. This fee ensures that the property is well-managed and maintained throughout the entire process.
How will this work? Who can be a trustee?
In Cambodia, establishing a trust involves selecting a qualified trustee registered with the Trust Regulator and holding a valid trustee certification. Under the Law on Trusts 2019, trustees can be either legal entities or independent individual trustees.
The Trust Establishment and Registration Process involves a series of steps to create and officially register a trust in Cambodia. This process ensures that the trust is legally recognized and that the property or assets are properly managed on behalf of the beneficiary. It includes appointing a trusted company, completing the necessary documentation, and adhering to legal requirements to ensure compliance and secure ownership.
In short,
Cambodia's Trust Law has significantly reshaped the investment landscape by providing a legal framework that facilitates foreign participation in real estate ownership. By allowing foreigners to establish trusts that comply with local laws while retaining beneficial ownership rights, Cambodia has positioned itself as an attractive destination for international investors seeking growth opportunities.
As more investors recognize the benefits of utilizing trusts for property investments, it is expected that Cambodia will continue to see growth in its real estate sector alongside broader economic development initiatives.
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To learn more about Cambodia Trust law, Contact our experts via-
📞+855 92 92 1000
📧 info@realestate.com.kh
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