TL;DR: Cambodia's Capital Gains Tax (CGT) is set at 20% on property sales by individuals, but its enforcement has been postponed — again — to January 1, 2027. This is the fifth delay since 2020. Currently, no CGT applies to individual property sellers. An 80% cost deduction option effectively reduces the real tax burden to ~4% of sale price.

Cambodia Capital Gains Tax on Property: What Investors Need to Know Before 2027

Updated July 2026. Verify current status with GDT before any transaction.

What Is Cambodia's Capital Gains Tax and Who Does It Affect?

Cambodia's Capital Gains Tax (CGT) was established under Prakas No. 346 MEF.Prk (2020), issued by the Ministry of Economy and Finance. The statutory rate is 20% on capital gains realized by individuals from the sale of immovable property.

For companies, capital gains are already included in the standard corporate income tax — so the CGT primarily targets individual (private) investors buying and reselling condominiums, apartments, villas, or land in Cambodia.

A Brief History: Five Postponements Since 2020

The CGT has been repeatedly delayed since its enactment:

  • 2020 — Prakas 346 enacted; implementation expected.
  • 2021 — First postponement (COVID-19).
  • 2024 — Second delay.
  • 2025 — Third delay.
  • January 2026 — GDT and MEF officially announce enforcement moved to January 1, 2027 (Deloitte taxathand, 12.01.2026; Kiripost).

The pattern is clear: the legal framework exists, but enforcement keeps slipping. That said, international auditors including KPMG and Deloitte now signal a higher probability of the 2027 implementation actually occurring.

How the Tax Is Calculated: The 80% Deduction Option

Under Prakas 346, sellers can choose between two methods to determine the taxable gain:

Method Calculation Effective Rate on Sale Price
Actual costs Sale price − documented acquisition/improvement costs Depends on actual gain
Fixed 80% deduction 20% tax rate × 20% of revenue ~4% of sale price

For most private investors, the fixed 80% deduction is the more favorable option — it caps the effective CGT burden at approximately 4% of the gross sale price, regardless of actual profit margin.

Example: - Property sold for $150,000 - CGT (80% deduction method): $150,000 × 20% × 20% = $6,000

⚠️ The 80% deduction mechanism is established in Prakas 346, but its exact application procedures should be confirmed with GDT or a licensed Cambodian tax advisor before closing any transaction in 2027.

Impact on the "Buy Off-Plan, Sell After Completion" Strategy

This is the most common investment strategy in Cambodia's condo market — particularly in Phnom Penh and Sihanoukville — and CGT directly affects its economics.

Current situation (2026): - Transfer Tax (Stamp Duty): 4% — paid by the buyer. - CGT on the seller: $0 (postponed).

After January 1, 2027: - Transfer Tax: 4% — still paid by buyer. - CGT: ~4% of sale price — paid by the seller.

For a 3–4 year flip strategy, this means the net yield on the transaction drops by roughly 3–5 percentage points. Anyone buying today with an exit planned in 2027 or later should build CGT into their base-case financial model.

What Investors Should Do Before 2027

  1. Use the current window — CGT-free exits are still available throughout 2026.
  2. Model CGT into your exit projections for any sale planned from 2027 onward.
  3. Keep documentation of all acquisition costs, renovation expenses, and agent commissions — this will be essential if you opt for the actual-cost deduction method.
  4. Consult a local tax advisor — especially if selling as a foreign individual, since jurisdictional nuances may apply.
  5. Don't count on a sixth postponement — the risk of enforcement is higher than ever.

FAQ

Q: Is CGT currently enforced in Cambodia in 2026? A: No. As of January 2026, the Cambodian government and GDT have officially postponed CGT enforcement on individual property sellers until January 1, 2027. No CGT is due on property sales completed in 2026.

Q: How much will CGT actually cost if I sell in 2027? A: Using the 80% deduction method, the effective rate is approximately 4% of the gross sale price. On a $120,000 sale, that's roughly $4,800 in CGT payable by the seller.

Q: Does CGT apply to foreign investors selling property in Cambodia? A: Prakas 346 applies to individuals without distinguishing by nationality or residency. Foreign investors selling Cambodian property are subject to CGT once enforced. Seek advice from a qualified Cambodian tax lawyer for your specific situation.

Q: Could CGT be postponed again beyond 2027? A: It's possible — there are five precedents. However, KPMG and Deloitte reports from 2025–2026 suggest stronger institutional readiness this time. Base-case planning should treat CGT as active from January 2027.

Find your investment property → nextoasis.io 💬 Telegram channel · property@nextoasis.io