EuroCham Urges Reform of Condo Management Laws to Bolster Investor Confidence

PHNOM PENH, May 25, 2026 (KPT) — The European Chamber of Commerce in Cambodia (EuroCham) has urged the government to reform laws governing co‑owned building management to strengthen investor confidence, improve transparency and reduce regulatory risks in the real estate sector.

The recommendation was outlined in EuroCham’s White Book 2027, which presents 77 policy proposals reflecting member companies’ views on Cambodia’s business environment.

EuroCham said the current framework has created uncertainty over the legal status of condominium “Management Boards” or “Executive Committees,” which oversee maintenance and operational funds.

 While Sub‑Decree No. 126 requires these committees to establish internal regulations, existing rules do not clearly define them as non‑profit entities or commercial property managers.

As a result, many committees face legal and tax complications if they attempt to register formally, leading to a regulatory “grey market” where some operate without registration to avoid profit taxes and licensing costs.

EuroCham warned that ambiguity could increase risks in managing large maintenance funds, undermining confidence in the condominium and construction sectors. It recommended establishing a tailored legal, licensing and tax framework for non‑profit management boards and executive committees.

Such reforms, the group said, would encourage registration, strengthen governance standards, reduce financial risks and improve confidence among local and international property investors.

EuroCham emphasized its proposals aim to support constructive dialogue with the government and promote practical reforms to enhance Cambodia’s investment climate in the short to medium term.