Property Ownership, Taxes & Visas in Cambodia: 3 Real-World Examples

TL;DR: Foreigners in Cambodia can own a condo or studio outright (strata title, freehold) from the 2nd floor up — but cannot own land directly. Transfer tax is 4%; new-build units under $70k qualify for a 0% exemption. The annual TOIP property tax is 0.1% on value above $25,000. Capital gains tax is suspended until January 1, 2027. Property ownership does not grant a visa.

Key Rules Before Any Purchase

All figures below reflect Cambodia's tax framework as of 2025–2026. Always verify with a licensed local lawyer before signing — the assessed (taxable) value may differ from the market price.

Ownership structure: - Condo/apartment — foreigners may hold strata title (freehold) from the 2nd floor up. - Land — foreigners cannot own land directly. Options: leasehold (50+50 years), 51/49 landholding company, or trust.

Key taxes at a glance: - Transfer tax: 4% of assessed value. Exemption: new-build from developer ≤$70k → 0%. - TOIP (annual immovable property tax): 0.1% on value exceeding $25,000. - Rental income tax: 10% (resident) / 14% (non-resident) on gross income. - Capital Gains Tax (CGT): frozen until January 1, 2027 (currently $0 for seller). From 2027: 20% on gain, ~4% effective after cost deductions.

Visa: real estate ownership alone does not grant residency or a visa. Separate options: Retirement visa (ER, ~$290/year), CM2H long-stay (10 years, $100k deposit), EB + work permit (for business activity).

Example 1: Studio at $45,000 — New Build from Developer

The cleanest entry point for a foreign buyer.

Ownership: strata title, freehold, hard title per unit. Full foreign ownership. ✓

Upfront costs: - Transfer tax: $0 (exemption: ≤$70k, new build) - Admin/registration fees: ~$500–1,500

Annual holding costs: - TOIP: 0.1% × ($45k − $25k) = ~$20/year

If rented ($400/month = $4,800/year): - Resident 10%: $480/year - Non-resident 14%: $672/year

On resale: seller owes $0 CGT now; buyer pays 4% transfer. After 2027: CGT ~4% effective on gain.

Bottom line: zero transfer tax, $20/year in property tax, clear ownership structure. Best starting point for first-time buyers in Cambodia.

Example 2: Studio at $20,000 — Secondary Market

The highest-risk category from a legal standpoint.

Ownership: strata title freehold — only valid if the unit is registered in a co-owned building with a hard title, 2nd floor or above. ⚠️ Low-cost secondary units frequently carry soft title only. Verify title type before paying any deposit.

Upfront costs: - Transfer tax: 4% × $20,000 = $800 (secondary market, no exemption)

Annual holding costs: - TOIP: $20k < $25k threshold → $0/year

If rented ($250/month = $3,000/year): - Resident 10%: $300/year - Non-resident 14%: $420/year

On resale: same as above — $0 CGT now; after 2027, CGT on gain.

Bottom line: lowest annual tax burden of the three examples, but title risk is the critical variable. No hard title = no deal.

Example 3: Villa + 500 m² Land at $350,000

The most structurally complex transaction.

Ownership: foreign buyers cannot hold land directly. Three viable structures: 1. Leasehold 50+50 years — simplest, most common for residential use. 2. 51/49 landholding company — control via legal entity; requires accounting and a trustworthy local partner. 3. Trust (available since 2019) — newer mechanism, requires legal structuring.

Upfront costs: - Transfer tax: 4% × $350,000 = $14,000 (no exemption above $70k) - Leasehold structure: registration fees apply instead of full 4% (structure-specific) - Company purchase: 4% on land transfer to entity + corporate setup costs

Annual holding costs: - TOIP: 0.1% × ($350k − $25k) = ~$325/year - Unused Land Tax (2%): applies to vacant land only — built villa is exempt - Via company: additional CIT and accounting costs

If rented ($2,000/month = $24,000/year): - Resident 10%: $2,400/year - Non-resident 14%: $3,360/year

Visa: CM2H (10-year, $100k deposit) is the logical choice for a $350k investor. If the property generates business income: EB + work permit.

Bottom line: $14k at entry, ~$325/year in property tax, plus ongoing structure costs. Professional legal preparation is non-negotiable.

Side-by-Side Comparison

Parameter Studio $45k Studio $20k Villa $350k
Ownership type Strata freehold ✓ Strata freehold ⚠️ Leasehold / company
Transfer tax $0 $800 $14,000
Annual TOIP ~$20 $0 ~$325
Rental tax (resident) $480/yr $300/yr $2,400/yr
CGT (until 2027) $0 $0 $0
Recommended visa ER / CM2H ER / CM2H CM2H / EB+WP

FAQ

Q: Can a foreigner own property in Cambodia outright? Yes — condos and studios from the 2nd floor up can be held as strata title freehold. Land cannot be owned directly by foreigners. On the secondary market, always confirm the unit has a registered hard title before proceeding.

Q: What is the property transfer tax in Cambodia? The standard rate is 4% of assessed value. New-build units purchased directly from a developer at a price of $70,000 or below qualify for a full exemption (0%). Administrative and registration fees add approximately $500–1,500.

Q: Does buying property in Cambodia give you residency? No. Property ownership alone does not entitle you to a visa or residency permit. Long-stay options must be arranged separately: the Retirement (ER) visa costs approximately $290/year; the CM2H long-stay programme requires a $100,000 deposit for a 10-year permit.

Q: When does Cambodia's capital gains tax come into effect? CGT for individuals has been officially postponed until January 1, 2027. Until then, sellers owe $0 in CGT. From 2027, the nominal rate is 20% on the gain, but with standard cost deductions (up to ~80%), the effective rate is approximately 4%.

Browse available listings → nextoasis.io

🌐 Каталог объектов NextOasis