Currently, Cambodian regulations do not allow foreigners to purchase properties connected with the land, such as land, flat houses, or shophouses. Some investors may already know or have the experience of using a Nominee structure or a land holding company(LHC) when investing property. Although both methods solve the title-holding problem for investors, some negative news like fraudulence or high hidden fees still happened, hurting property buyers’ confidence in investing. Therefore, safely investing in real estate in Cambodia has become an essential issue for foreigners before investing.
Secure your assets through a trust structure
A Trustee is a legal entity that manages assets on behalf of a person or business and eventually transfers them to a beneficiary. There are many types of trusts, and the structures are pretty flexible. For example, except for using a land trust when buying the land, investors could also combine the land trust with a money trust or use a money trust directly to increase the flexibility and safety in investing.
However, A simple contract with a licensed trust company cannot be called a real Trust. A legal trust product has its own operating process, especially trust registration. Take the land trust as an example; the trust company has to register the asset with the Ministry of Economy and Finance(MEF) within three months after signing a trust contract. The MEF will issue a certificate to officially announce that the asset has registered and become a “Trust Asset” after the registration, which means the Cambodian Trust Law protects the asset. Furthermore, the selection of trust companies is also essential. Besides possessing a legal business license and Trust license, the ability to customize the product structure and implement trust registration procedures are also significant indicators to meet the clients’ demand and safeguard the property.
Stronghold Trustee combines international professionals in various fields with years of experience in Cambodia in providing high-quality financial services, such as land trust, money trust, equity trust, construction trust, social trust, and other commercial investment or charitable trust solutions. Also, Stronghold Trustee has successfully registered many cases with the MEF, which perfectly solved the investment problems for overseas investors when buying real estate in Cambodia. Feel free to contact us if you have any questions or demands!