TL;DR: Cambodia's annual property tax (TOIP) is 0.1% of the assessed value per year. The first 100,000,000 KHR (≈ $25,000) is exempt. Both locals and foreigners holding strata-title units must pay by September 30 each year.

Cambodia Property Tax (TOIP): 0.1% Annual Rate — Complete Guide for Foreign Investors

Updated for 2025. TOIP parameters are set annually by the Law on Financial Management — verify the current year's figures at tax.gov.kh.

What Is TOIP and Who Must Pay It?

TOIP — Tax on Immovable Property — is an annual property holding tax in Cambodia, introduced through the Law on Financial Management starting in 2011. It is administered by the General Department of Taxation (GDT).

Who pays: - Any owner of property located in urban or built-up areas of Cambodia - Foreign nationals holding strata-title units in condominiums (Condominium Law 2010) - Legal entities owning real estate assets

Foreign investors in Cambodian condominiums are fully subject to TOIP — there is no exemption based on nationality.

How Is TOIP Calculated? Rate, Threshold, and Tax Base

Rate: 0.1% per year.

Exempt threshold: The first 100,000,000 KHR (approximately $25,000) is not subject to tax. TOIP applies only to the value above this threshold.

Tax base: The assessed value determined by GDT's Property Valuation Committee — typically lower than market value, which further reduces the effective tax burden.

Calculation Example

Parameter Value
Assessed value of unit $60,000
Exempt threshold $25,000
Taxable base $35,000
Rate 0.1%
Annual tax $35

For a $100,000 property, the annual TOIP would be approximately $75. For $200,000 — around $175. These are illustrative figures; actual amounts depend on GDT's official assessment.

When and How to Pay TOIP

Deadline: Typically September 30 of the current year.

Payment channel: Through GDT. In practice, many condominium management companies assist foreign owners with filing and payment — check with your developer or property manager.

Late payment: GDT applies penalties for late payment. Consult the current Law on Financial Management or a licensed local tax adviser for exact figures.

Why TOIP Matters for Foreign Real Estate Investors

Cambodia is one of the few Southeast Asian markets where foreigners can legally own property (via strata title) with an exceptionally low annual holding cost.

Key advantages: - 0.1% rate is among the lowest in the region - The $25,000 exempt threshold effectively eliminates tax on entry-level units - Assessed value is lower than market value, reducing the actual tax amount further

Watch out for: - TOIP is not the only property-related tax. Stamp Duty (4%) applies at purchase; rental income tax (10% or 14%) applies when leasing - TOIP parameters are updated annually — check tax.gov.kh at the start of each financial year - Properties outside urban/built-up zones may fall under a different tax regime

Full Tax Picture: Owning Property in Cambodia

Tax Rate Trigger
TOIP (annual property tax) 0.1%/year Annually
Stamp Duty (transfer tax) 4% At purchase
Rental income tax 10% / 14% On rental receipts
Unused land tax Varies If property is idle

Understanding the full tax map is essential for accurate investment yield modelling.

FAQ

Does a foreigner owning a Phnom Penh condo owe TOIP? Yes. Under the 2010 Condominium Law, foreign strata-title holders are liable for TOIP just like Cambodian citizens. There is no nationality-based exemption.

What if the assessed value is below $25,000? If the GDT-assessed value does not exceed 100,000,000 KHR (≈ $25,000), the annual TOIP is zero — the property falls entirely within the exempt threshold. Filing is still recommended to avoid queries from tax authorities.

Where can I find official TOIP information? The official tax list is published at tax.gov.kh. Since rates and thresholds are set by annual law, check the site at the beginning of each financial year or consult a licensed Cambodia tax adviser.

Is the purchase price used as the TOIP tax base? No. TOIP is calculated on the assessed value set by GDT's Valuation Committee, not the transaction price or current market value. The assessed value is typically lower than market, reducing the effective tax.

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