Cambodia vs the Philippines: 70% Cap Against 40% Cap

Quick answer: On the two exposures that decide a foreign buyer’s outcome, ownership and tax, Cambodia is the more open market. Cambodia caps foreign holding at 70% of a building’s total private-unit area against the Philippine 40% project cap, and withholds 14% on a non-resident’s rent against 25%.

The expected shape of this comparison is a mature, English-speaking, heavily regulated market against a small frontier one. That is a fair description of the two economies. It is not a description of what a foreign property buyer actually experiences in either.

Foreign buyers in both countries meet a cap, a withholding tax and a currency. Line those three up side by side and the ranking most readers arrive with turns over.

Three numbers carry most of the argument. Cambodia’s foreign cap is 70% of a building’s total private-unit area; the Philippine cap is 40% of a project. Cambodia withholds 14% on a non-resident’s Cambodian-source income; the Philippines applies a 25% final withholding tax on a non-resident alien’s gross rent with no deductions. And the Philippine peso set a record low of 61.85 to the dollar in July 2026, about 9.3% weaker year on year, while Cambodia transacts in dollars. Our analysis treats the first of those as the most consequential, because a cap does not merely restrict what you can buy, it decides who is legally permitted to buy it from you later. The three lines move in the same direction rather than offsetting one another, which is unusual in a country comparison and is the reason this page reaches a clearer verdict than the Thailand and Vietnam pages do.

What actually separates these two markets?

The Philippines is roughly six times Cambodia’s population and carries a deeper legal and financial system, while Cambodia offers a wider foreign ownership allowance at 70% and a dollar economy behind it. Foreign buyers in both countries are restricted to strata or condominium units above the ground floor, and both are locked out of land freehold entirely.

Dimension	Cambodia	Philippines
Foreign ownership cap	70% of total private-unit area	40% of a condominium project
Land freehold for foreigners	Closed	Closed
Transaction currency	US dollar	Philippine peso
Non-resident rent withholding	14%	25% on gross
Capital gains tax	20% of the gain from 1 Jan 2027	6% of gross selling price now
Round-trip transaction cost	About 4% transfer tax	About 8% to 10%

Neither market is open in the way a European or Australian buyer expects, and the useful comparison is therefore about the shape of the restriction rather than its presence. Our analysis frames it as a single question: at what point does the building stop being able to sell to someone like you? In Cambodia that point arrives when 70% of the total private-unit area is foreign-held. In the Philippines it arrives at 40% of the project. The methodology matters as much as the number, because the Cambodian cap is measured on area and the Philippine one on the project as a whole, so two buildings with identical unit counts can sit at very different points on the two scales.

• The Cambodian cap is measured on total area, never on the number of units.
• The Philippine cap is a project-level ceiling, not a personal one.
• Cambodian rules are set out in the foreign ownership guide.
• The Thai version of this comparison is Cambodia versus Thailand.
• The Vietnamese version is Cambodia versus Vietnam.

How much can a foreigner own in each country?

Cambodia permits freehold strata title on private units above the ground floor up to 70% of the building’s total private-unit area, under the Law of 24 May 2010 and Sub-Decree No. 126 of 2009. The Philippines permits condominium ownership up to 40% of the project under Republic Act 4726.

Ownership question	Cambodia	Philippines
Governing instrument	Law of 24 May 2010, Sub-Decree No. 126	Republic Act 4726, the Condominium Act
Cap basis	70% of total private-unit area	40% of the condominium project
Ground-floor units	Excluded from foreign ownership	Generally available
Land or house on land	Closed to foreigners	Closed to foreigners
Long lease alternative	15 to 50 years, renewable	25 years, renewable once
Effect at the cap	Foreign purchases stop	Foreign-to-foreign transfers freeze

Insider tip: the difference that costs money is not the headline percentage, it is what happens when a building fills. In the Philippines, once the 40% ceiling is reached, foreign-to-foreign transfers freeze and a departing foreign owner can sell only to a Filipino buyer or to a foreigner taking over a vacated slot. In Cambodia, reaching the 70% area cap stops further foreign purchases in that building but leaves a much larger share of the stock in foreign hands and therefore a much larger pool of eligible onward buyers. Our underwriting treats the remaining quota as an exit variable rather than an entry formality, and the checklist item is the same in both countries: get the current figure in writing from the building administration before any deposit moves.

• Ask for the current foreign quota in writing, in both countries.
• A full Philippine building freezes foreign-to-foreign resale.
• Cambodian quota mechanics sit in the strata title FAQ.
• Lease and structure routes are in the lease, nominee and trust guide.
• Land routes are covered in the land ownership guide.

What does a comparable unit cost in each capital?

Prime Metro Manila condominiums ask roughly PHP 300,000 to PHP 330,000 per square metre, which converts to about $4,850 to $5,340 at 61.85 pesos to the dollar. Prime Phnom Penh strata in BKK1 and Tonle Bassac runs $2,300 to $3,200 per square metre, so the capital is materially cheaper per metre.

Price measure	Cambodia, Phnom Penh	Philippines, Metro Manila
Prime price per sqm	$2,300 to $3,200	About $4,850 to $5,340
City average per sqm	About $1,800	Above the Phnom Penh average
Entry studio ticket	$35,000 to $65,000	Higher in prime districts
Quoted gross yield	5.22% to 7.4% in Phnom Penh	About 5%, national range 4% to 6%
Currency of the price	US dollar	Philippine peso
Supply backdrop	76,000 to 80,000 condo units	Substantially larger market

Metro Manila is the more expensive capital per square metre and the lower-yielding one, which is the outcome a scale premium usually produces. Our analysis is careful with this comparison rather than triumphant about it, because the Philippine number carries a depth of market that Cambodia cannot match: more transactions, more comparables, more lenders and a functioning REIT sector. A buyer scenario worth naming is the investor who reads a Phnom Penh yield advantage of one or two points and treats it as free money. It is compensation for thinner liquidity, and pricing it as anything else is the most common error in cross-border comparisons of this kind. Put in numbers, the Phnom Penh advantage is worth perhaps 1.5 to 2.4 points of gross yield against a Manila reading near 5%, and it is being paid for by a market with 76,000 to 80,000 condominium units and an absorption rate of only 3% to 4% a year.

• Manila is dearer per metre and lower yielding at the prime end.
• Cambodia’s yield advantage is compensation for thinner liquidity.
• Phnom Penh yield workings sit in the yield guide.
• Ticket sizes are in the condo price guide.
• Net-of-tax modelling is in the net versus gross yield guide.

What does each country take in tax?

The Philippines applies a 25% final withholding tax on a non-resident alien’s gross rental income with no deductions permitted, against Cambodia’s 14% withholding on Cambodian-source income paid to non-residents. Philippine round-trip transaction costs for foreign buyers commonly reach 8% to 10%, against a 4% Cambodian transfer tax on assessed value.

Tax or cost	Cambodia	Philippines
Rent, non-resident	14% withholding	25% final withholding on gross
Deductions against rent	Limited	None for this class
Transfer or stamp on purchase	4% transfer tax	1.5% documentary stamp tax
Local transfer tax	Included in the 4%	0.5% to 0.75%
Capital gains on sale	20% of the gain from 1 Jan 2027	6% of gross selling price
Typical round trip	About 4%	About 8% to 10%

The tax comparison splits cleanly by holding period, and this is where the Philippines takes back ground. A landlord holding for income is far better off in Cambodia, where the rent withholding is eleven points lower. A seller crystallising a large gain after 1 January 2027 is better off in the Philippines, where 6% of gross selling price will usually be a smaller bill than 20% of the gain on an asset that has appreciated meaningfully. Our underwriting therefore refuses to answer the tax question in the abstract and models both jurisdictions over the buyer’s actual intended hold, because the crossover point moves with the size of the expected gain rather than with anything about the two tax codes.

• Income buyers are better served by the Cambodian 14% rate.
• Large-gain sellers after 2027 may prefer the Philippine 6%.
• Cambodian rates are set out in the taxes and fees guide.
• The 2027 change is covered in the capital gains tax guide.
• Home-country treatment sits in the home country tax guide.

What does the currency do to a dollar investor?

Cambodia is dollarised, with about 80% of broad money held in foreign currency, so a dollar investor takes essentially no local currency risk. The Philippine peso set a record low of 61.85 to the dollar in July 2026, roughly 9.3% weaker year on year, with market forecasts near 63 by year end.

Currency factor	Cambodia	Philippines
Transaction currency	US dollar	Philippine peso
Share of broad money in FX	About 80%	Not applicable
Recent move against the dollar	Effectively pegged behaviour	Record low 61.85 in July 2026
Twelve-month change	Negligible for a dollar holder	About 9.3% weaker
Forecast direction	Stable	Near 63 by end 2026
Effect on a dollar rent	None	Rent set in a falling currency

Currency is the quietest line in a comparison like this and often the largest. A Philippine landlord collecting peso rent and measuring returns in dollars lost roughly 9.3% of that income stream over twelve months before a single tenant missed a payment, and forecasts near 63 imply the same pressure continuing. Our analysis has repeatedly found that this single factor swamps the yield gap between the two markets over any multi-year hold, and the red flag is a projection that quotes a Philippine gross yield in percentage terms without stating which currency the numerator and denominator are in. Cambodian dollarisation removes that entire line from the model, which is worth more to most foreign buyers than a point of headline yield.

• Peso rent measured in dollars fell about 9.3% over twelve months.
• Cambodian dollarisation removes the currency line entirely.
• The dollar economy is explained in the dollarisation guide.
• Getting proceeds out is covered in the repatriation guide.
• Banking mechanics sit in the bank account guide.

Which country is easier to retire into?

Cambodia asks less of a retiree than any comparable programme in the region. Its ER retirement extension requires age 55, no employment and no fixed deposit at all, at about $290 to $300 a year. The Philippine SRRV requires a refundable deposit of $15,000 to $50,000 depending on age and pension status.

Retirement route	Cambodia ER	Philippines SRRV
Minimum age	55	40 after the September 2025 restructure
Deposit required	None	$15,000 to $50,000
Deposit with a pension	Not applicable	$15,000
Deposit without a pension	Not applicable	$30,000 at 50 plus, $50,000 at 40 to 49
Annual cost	About $290 to $300	$360, after a $1,500 one-off fee
Renewal	Repeatable, no stated limit	Renewable

The Philippine deposit is refundable and remains the retiree’s own money, which is a fair point and one that promotional Cambodian content usually omits. What it is not is liquid: it sits with the Philippine Retirement Authority for as long as the visa runs. Our analysis treats the relevant question as opportunity cost rather than expense, and for a retiree whose capital is already committed to a property purchase, a $30,000 deposit sitting idle is a real constraint. The buyer scenario where the Philippine route wins is the retiree aged 40 to 54, because Cambodia simply does not offer them an ER extension at that age. That age gap is the single clearest advantage the Philippine programme holds, and it widened rather than narrowed when the September 2025 restructure dropped the SRRV minimum from 50 to 40 while raising the no-pension deposit to $50,000 for that younger band.

• Cambodia asks no deposit and no statutory income floor.
• The Philippine deposit is refundable but illiquid while the visa runs.
• Cambodian retirement detail sits in the retirement guide.
• Other Cambodian visa classes are in the visa options guide.
• The property-linked residency route is in the residency guide.

Advantages and disadvantages

Cambodia wins on ownership allowance, rent taxation and currency. The Philippines wins on scale, legal depth and capital gains treatment.

Advantage	Disadvantage
Cambodian 70% cap against a Philippine 40% cap	Cambodia has a far smaller transaction pool
Cambodian 14% rent withholding against 25%	Cambodian 20% capital gains tax from 1 Jan 2027
Cambodian dollarisation removes currency risk	Cambodian lending for foreigners is thin
Cambodian round trip near 4% against 8% to 10%	Philippine legal depth is genuinely greater
Cambodian ER visa needs no deposit	Philippine SRRV opens at 40, Cambodia at 55
Cambodian prime pricing is roughly half Manila’s	Philippine REIT market has no Cambodian equal

A fair reading is that the Philippines is the better country and Cambodia the better position for this particular buyer. Scale, language, legal precedent, lender depth and an actual listed property sector all favour Manila, and none of those advantages disappears because a cap is set at 40%. What they do not do is change the arithmetic a specific foreign landlord faces: a lower ownership ceiling, an eleven-point higher rent withholding, and a currency that lost about 9.3% against the dollar in twelve months.

Buyer scenarios and red flags

Three scenarios cover most enquiries where both countries are genuinely on the table.

Scenario	What they want	What we would recommend
Income buyer, ten-year hold, dollar base	Predictable net rent	Cambodia, on withholding and currency
Trader expecting a large gain by 2030	Capital growth, clean exit	Model both; Philippine 6% may beat 20%
Retiree aged 46 with no pension yet	Residency plus a home	Philippines; Cambodian ER opens at 55

The failure pattern is a comparison run on headline yield alone. A buyer sees about 5% in Manila and 5.22% to 7.4% in Phnom Penh, concludes the gap is modest, and stops there. The gap after tax is not modest: 25% of gross against 14% moves a 5% Philippine gross below 3.8% net of withholding, while a 6.5% Phnom Penh gross holds above 5.5% on the same treatment. Add a currency that fell about 9.3% in twelve months on one side and none on the other, and the two markets are not a point apart. Our underwriting runs both models after tax and after currency before it looks at the property at all, and on that order of operations the comparison rarely stays close.

• Compare after withholding tax, not on gross yield.
• State which currency both sides of a yield are denominated in.
• Confirm the remaining foreign quota in writing in either country.
• Model the Philippine 6% against the Cambodian 20% on your actual expected gain.
• Treat a refundable SRRV deposit as committed capital, not as a fee.

Frequently Asked Questions

Which country lets foreigners own more? +

Cambodia, at 70% of a building's total private-unit area, against a 40% project cap in the Philippines under Republic Act 4726. Neither allows foreign land freehold.

What is the Philippine 40% rule? +

A per-project ceiling on total foreign interest, not a personal limit. Once a building reaches it, a foreign seller can only sell to a Filipino or to a foreigner taking a vacated slot.

Which taxes a foreign landlord more? +

The Philippines. A non-resident alien pays 25% final withholding on gross rent with no deductions. Cambodia withholds 14% on Cambodian-source income paid to non-residents.

What are transaction costs? +

Philippine round trips commonly run 8% to 10%, including 6% capital gains tax, 1.5% documentary stamp tax and 0.5% to 0.75% transfer tax. Cambodia charges a 4% transfer tax.

How much does currency matter? +

A great deal. Cambodia is dollarised with about 80% of broad money in foreign currency. The peso hit a record low of 61.85 in July 2026, about 9.3% weaker year on year.

Which is better on capital gains? +

The Philippines charges 6% of gross selling price today. Cambodia charges nothing until 1 January 2027, then 20% of the gain, which on a large gain is the heavier bill.

Which is easier to retire into? +

Cambodia. The ER extension needs age 55 and no deposit at about $290 to $300 a year, against an SRRV deposit of $15,000 to $50,000 plus $1,500 once and $360 a year.