TL;DR: Rental income from Cambodian property is subject to withholding tax. Resident individuals pay 10% on gross rental income; non-residents pay 14%. Companies include rental income in corporate Tax on Income at 20%, with potential 10% VAT on commercial leases. The tax is administered by GDT under Cambodia's Law on Taxation.

Cambodia Rental Income Tax: 10% vs 14% — What Every Property Investor Must Know

Last reviewed: 2025. Always verify current rates against the latest Prakas issued by GDT, as the regulatory framework is subject to updates.

Tax Rates by Investor Category

Cambodia's Tax on Property Rental is governed by the General Department of Taxation (GDT, tax.gov.kh) under the Law on Taxation (Articles 2–3 on resident/non-resident status).

Category Rate Mechanism
Resident individual 10% Withheld at source or paid by landlord
Non-resident individual 14% Withholding tax on Cambodia-sourced income
Legal entity (company) 20% (Tax on Income) Plus potential 10% VAT on commercial rentals

Resident taxpayers are liable on worldwide income; non-residents only on Cambodia-sourced income. Residency is determined by the 183-day rule.

Who Actually Remits the Tax?

When a property is managed through a property management company, the company typically acts as the withholding agent — deducting the tax and remitting it to GDT. The landlord receives net income.

For direct, self-managed rentals, the landlord bears the obligation. This distinction matters: ignorance of the withholding structure is not a defence against liability.

Key due-diligence question for any rental or management agreement: who is explicitly identified as the withholding agent, and how is this documented?

Guaranteed Rental Return (GRR) Programs and Tax

Many Cambodian developers market properties with Guaranteed Rental Return schemes promising 6–10% annual yields. GRR payments constitute taxable rental income — the same tax rules apply.

Before signing a GRR agreement, clarify:

  • Does the developer or management company withhold tax on GRR payments?
  • Is the advertised yield quoted gross or net of tax?
  • How does your residency status affect the net return?

Marketed yields of 15–20% frequently omit tax impact. At realistic market yields of 4–8%, a 4-percentage-point difference in tax rate (10% vs 14%) is a material reduction in actual cash flow.

Corporate Ownership: A Different Calculation

Foreign nationals typically hold Cambodian property through a local company structure, as direct land ownership by non-residents is restricted. In this case, rental income falls under corporate Tax on Income at 20% — not the individual withholding rates.

Commercial property rentals may also attract 10% VAT on top of the corporate income tax. The ownership structure directly shapes the effective tax burden and should be modelled before acquisition.

Practical Checklist for Investors

  1. Confirm your residency status — 183+ days determines whether you pay 10% or 14%.
  2. Identify the withholding agent — management company or self-remittance.
  3. Scrutinise GRR terms — is yield stated gross or net; who handles tax compliance?
  4. Cross-check with current Prakas GDT — official instruments take precedence over marketing materials.
  5. Model ownership structure — individual (10/14%) vs company (20% + possible VAT).

FAQ

Q: Does the tax apply if my tenants are foreigners? A: Yes. The tax is determined by the source of income — Cambodian real property — not the tenant's nationality. Resident landlords pay 10%, non-residents 14%, regardless of who rents the unit.

Q: Can I deduct property maintenance expenses from taxable rental income? A: For individuals subject to withholding tax, the base is gross rental income with no deductions. Companies subject to Tax on Income may deduct legitimate business expenses. Confirm the specific treatment with a licensed Cambodian tax adviser and current Prakas.

Q: What happens if I don't pay — especially as a non-resident? A: GDT has authority to assess back taxes, penalties, and interest. Cambodia's Law on Taxation applies to all income sourced from Cambodian property, regardless of the owner's country of residence.

Q: Does short-term rental (Airbnb-style) trigger the same tax? A: Yes. Tax on Property Rental applies to rental income regardless of lease duration. Without a property manager acting as withholding agent, the landlord is responsible for self-remittance.

Find the right property → nextoasis.io 🌐 Каталог объектів NextOasis