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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