TL;DR: Buying property in Cambodia involves a 4% stamp duty (waived to 0% for properties under $70k until 2027), an annual TOIP of 0.1% on cadastral value, and rental withholding tax of 10% (residents) or 14% (non-residents). The 20% Capital Gains Tax is deferred until January 1, 2027.

Current as of 2025–2026. Cambodia's tax regulations are subject to change — always verify with a local legal advisor.

What taxes does a buyer pay when purchasing property in Cambodia?

The primary transaction cost is the Stamp Duty (Transfer Tax) — 4% of the property value or cadastral assessment, whichever is higher.

Until 2027, a government incentive applies: - Properties valued at ≤$70,000 — 0% stamp duty - Properties valued $70,000–$210,000 — tax calculated on the amount exceeding $70k - Properties above $210,000 — standard 4% with no deduction

For assignment of purchase rights (installment plan, no title transfer yet), a flat fee of $300 applies — no 4% stamp duty. After full payment and Strata Title registration, re-registration costs approximately $1,500.

What are the ongoing annual costs of owning property in Cambodia?

TOIP (Tax on Immovable Property) — annual property tax: - Rate: 0.1% of cadastral value - Threshold: properties with cadastral value below ~$25,000 are exempt - Collected annually through local municipal authorities

In addition, premium-managed developments typically charge $0.50–$1.00 per m² per month for maintenance, security, and common area services.

Vacant or undeveloped land is subject to a separate unused land tax: 2% per year.

How is rental income taxed in Cambodia?

Cambodia uses a withholding tax system applied at the source of payment:

Landlord/recipient status Rate
Cambodia tax resident 10%
Non-resident 14%

Key distinction: the 14% for non-residents is a withholding tax, not VAT. It is deducted when rental income is paid out.

10% VAT applies separately — and only to commercial leases. Residential rental income is not subject to VAT.

Example: a non-resident earning $2,000/month from a commercial property will have $280 (14%) withheld, plus VAT of 10% on the lease amount charged on top.

What happens with Capital Gains Tax after 2027?

Capital Gains Tax (CGT) at 20% has been legislated but is fully deferred until January 1, 2027. No CGT is currently collected on property sales.

This creates a tangible investment window: sellers who complete transactions before 2027 avoid paying 20% on the difference between purchase price and sale price.

Post-2027 rules remain subject to government review — potential outcomes include full CGT enforcement, partial exemptions, or a further deferral. Monitoring regulatory updates is essential.

Why is Cambodia considered a Non-CRS jurisdiction and what does it mean for investors?

Cambodia does not participate in the Common Reporting Standard (CRS) — the international framework for automatic exchange of financial account information between tax authorities.

In practice: - Cambodian banks do not automatically report foreign account holders' data to their home-country tax authorities - Rental and capital gains income from Cambodian property does not flow automatically to foreign tax agencies

⚠️ This does not exempt investors from their legal obligation to self-report foreign-source income under the tax laws of their country of tax residency. Consulting a qualified tax advisor in your home jurisdiction is strongly recommended.

Cambodia property tax summary table

Tax / Fee Rate When it applies
Stamp Duty (Transfer Tax) 4% (incentive until 2027) At purchase / resale
TOIP (property tax) 0.1% Annual, threshold ~$25k
Rental withholding — resident 10% On each rental payment
Rental withholding — non-resident 14% On each rental payment
VAT on commercial leases 10% Commercial rental only
Capital Gains Tax 20% Deferred until 01.01.2027
Unused land tax 2% Annual
Installment assignment fee $300 flat Buyer change on installment plan
Strata Title re-registration ~$1,500 After full payment

Frequently Asked Questions

Q: Is stamp duty payable when assigning a property purchase contract during the installment period? A: No. Assigning purchase rights on an installment plan before title transfer incurs only a flat $300 fee — no 4% stamp duty. This is a common and legally compliant method of reducing transaction costs on pre-completion resales.

Q: When exactly does the 20% Capital Gains Tax take effect in Cambodia? A: The CGT is deferred until January 1, 2027, and is not currently collected. Post-2027 treatment will depend on further government decisions, which investors should monitor closely.

Q: Does VAT apply to residential rental income in Cambodia? A: No. The 10% VAT applies only to commercial leases. Residential rental income is subject solely to withholding tax: 10% for tax residents and 14% for non-residents.

Q: Does Cambodia share bank account data with foreign tax authorities? A: Not automatically. Cambodia is not a CRS participant and does not engage in automatic exchange of financial information. However, investors remain responsible for declaring foreign-source income under the laws of their home country.

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