Cambodia’s Trust Law – Legal Guide for Foreign Investors in 2025

Introduction: A New Legal Pathway for Foreign Investors

Cambodia’s real estate market has long attracted foreign interest, but direct land ownership by foreigners is constitutionally restricted. To bridge this gap, the Law on Trusts, enacted in 2019, offers a secure and transparent legal mechanism for foreigners to participate in land and property investment.

This guide breaks down how the Trust Law works, who can act as a trustee, and why it’s becoming the preferred structure for foreign investors in Cambodia.

What Is Cambodia’s Trust Law?

The Law on Trusts (2019) governs the creation, registration, and operation of trusts in Cambodia. A trust is a legal arrangement where a trustor (investor) transfers property to a trustee, who manages it for the benefit of a beneficiary.

Key Objectives of the Law:

Provide a regulated alternative to nominee structures
Enhance legal protection for foreign investors
Align Cambodia with ASEAN and global standards
Improve transparency and enforceability in property transactions

🔗 Read the full legal breakdown by BNG Legal

Types of Trusts in Cambodia

According to the Trust Law and supporting regulations, Cambodia recognizes several trust types:

Trust Type	Purpose
Commercial Trust	Profit-oriented, often used for real estate and investment
Public Trust	Supports public services like banking or infrastructure
Social Trust	Created for cultural, educational, or humanitarian purposes
Private Trust	Created for personal or family benefit (e.g., inheritance)
Financial Trust	Funded by foreign donors for sectoral development

✅ For foreign land investment, commercial and private trusts are the most relevant.

Who Can Be a Trustee?

Only individuals or entities licensed by the Trust Regulator (TR) can act as trustees in Cambodia.

Trustee Requirements:

Must be registered with the TR
Must hold a valid trustee license
Independent trustees are limited to managing assets under 10 billion KHR (~$2.5M) unless approved

📌 Trustees can be individuals, companies, or financial institutions.

📝 How to Register a Trust in Cambodia

Step-by-Step Process:

Draft a Trust Deed Must include purpose, trustee duties, beneficiary rights, and asset details.
Submit to the Trust Regulator Registration must occur within 3 months of trust creation.
Receive Trust Certificate Once approved, the trust is legally recognized and enforceable.

🔗 Explore trust registration procedures from CCU Trust

Why Use a Trust for Land Investment?

Benefit	Description
Legal Security	Trusts are governed by a clear legal framework
Transparency	Registered with the Trust Regulator
Bankability	Preferred by lenders and institutional investors
Control	Trust deed can define how the trustee manages the asset
Tax Planning	Offers distinct tax treatment vs. nominee structures

Want to compare with other options? Read: How Foreigners Can Buy Land in Cambodia

Trusts vs. Other Ownership Structures

Structure	Ownership	Legal Risk	Transparency	Cost
Trust	Trustee holds title	Low	High	Medium
LHC	Company owns land	Medium	Medium	High
Lease	Landlord owns land	Low	High	Low
Nominee	Nominee owns land	High	Low	Low

✅ Trusts offer the best balance of legal protection and transparency for foreign investors.

Trust Sector Growth in Cambodia

As of early 2023:

564 trust cases registered
$1.1 billion in trust assets under management
8 trust companies, 8 banks, and 43 physical trusts licensed

The Trust Regulator signed an MoU with the Cambodia Chamber of Commerce (CCC) to promote trust adoption and investor awareness

Work with Adaeng Land – Your Trust Investment Partner

At Adaeng Land, we help foreign investors:

Set up legal trust structures
Connect with licensed trustees
Secure land through commercial trusts
Navigate compliance and registration

📞 Contact us today for a free consultation on trust-based land investment.

💚 Invest with Purpose: Support the Sao Sary Foundation

We donate 10% of our profits to the Sao Sary Foundation, a Cambodian NGO supporting vulnerable children and families.

🙌 How You Can Help:

Invest through us – every land deal supports a child’s future
Make a donation – at www.saosaryfoundation.org
Share the mission – inspire others to give back

❤️ Your investment can change lives.

Final Thoughts: Trusts Are the Future of Foreign Investment in Cambodia

Cambodia’s Trust Law offers a secure, transparent, and legally recognized way for foreigners to invest in land and real estate. Whether you’re planning to develop, lease, or hold property, a trust structure can help you do it legally and confidently.