Cambodia Property Tax for Foreign Investors
Understanding Cambodia property tax is essential before committing to a condo purchase. Foreign investors face transfer taxes at purchase, annual property taxes during ownership, and potential capital gains tax on sale. This guide covers the real costs – stamp duty, registration fees, rental income tax, and what you will pay when you exit. We focus on Phnom Penh condos where most foreign buyers invest.
General information only. Your exact position depends on tax residency, ownership structure, and the specific transaction. Always confirm with a qualified Cambodia tax adviser before committing.
Written for foreign investors based on direct market experience. Last updated: January 2026.
Cambodia Property Tax Summary
Typical tax picture for foreign condo investors in Cambodia:
Buying
4% transfer/registration tax
On title transfer. Commonly buyer paid; sometimes negotiated or covered by developer promotions.
Owning (Annual)
0.1% property tax
On assessed value above KHR 100 million. Below threshold is generally exempt.
Renting Out
14% withholding tax
Often applied to non-residents where payer is a withholding agent. Tax treaty reductions may be possible.
Selling
4% transfer tax + CGT (deferred)
Transfer tax applies again (commonly buyer paid). Real estate CGT has been subject to multiple deferrals – confirm near sale date.
1) Taxes When You Buy a Condo
Transfer / Registration Tax (Often Called “Stamp Duty”)
- Rate: Commonly referenced as 4% on the transfer of ownership/right of possession of immovable property.
- Who pays: Usually the buyer (but it can be negotiated; some developers cover it on selected promotions).
- Value base: Commonly described as based on the property value determined/accepted by the relevant authorities (not always the same as your negotiated price).
If a developer says “transfer tax included”, ask for it in writing and clarify what exactly is covered.
2) Taxes When You Own a Condo (Annual)
Tax on Immovable Property (ToIP)
- Rate: 0.1% per year.
- Threshold: Assessed value minus KHR 100 million. If the assessed value is below the threshold, ToIP is typically exempt.
- Assessment: Value is determined by the relevant assessment committee (not simply what you paid).
For many smaller units, the annual tax can be modest (or exempt), but you should still factor it in and confirm at the time of purchase.
3) Taxes When You Rent Out Your Condo
Rental income tax in Cambodia is often handled through withholding tax (WHT) when the payer is a withholding agent (commonly businesses).
Withholding Tax (WHT): What Foreign Investors Should Understand
- Cambodia’s rules commonly referenced in tax summaries state that payments of Cambodian source income to a non-resident are subject to 14% withholding in many cases.
- Some summaries also reference 10% on rent paid to residents (included here for completeness, but most overseas investors focus on non-resident treatment).
- Tax treaties: Some reductions may be possible under double tax agreements, typically requiring proper process/approval.
If your tenant is a company/organisation, they are more likely to be set up to withhold and remit taxes correctly.
If your tenant is a private individual, withholding may not happen in practice, but that does not automatically mean you have no tax obligations. This is where professional advice is worth it.
4) Taxes When You Sell Your Condo
There are two separate “sale-related” items people commonly mix up:
A) Transfer/Registration Tax (4%): Triggered on Title Transfer
A sale triggers transfer/registration tax again on the ownership transfer. This is commonly buyer paid, but negotiable depending on the agreement.
B) Capital Gains Tax (CGT) on Real Estate: Subject to Deferrals
Real estate CGT has been subject to multiple deferrals. The CGT framework is widely discussed as 20% on net gains, but the calculation method, allowable deductions, documentation, and definitions matter in practice.
Real estate CGT has been deferred multiple times. Confirm with MEF/GDT guidance or your lawyer near your sale date because tax rules can change.
5) Common Fees and Costs Foreign Condo Investors Should Budget For
Taxes are only one part. Most overseas buyers should also consider:
Purchase/Admin (Varies by Deal)
- Documentation/admin fees (developer/agent/lawyer depending on structure)
- Bank transfer fees and FX spread (if you are not paying USD)
- Furnishing/setup (if you are buying for rental)
Ongoing Ownership
- Building management fees (condo services)
- Repairs/maintenance reserve
- Letting/management fees if you are overseas
Selling Later
- Agency marketing fees (if applicable)
- Documentation costs
- Timing/discount risk (liquidity varies by location and unit type)
6) Documents to Keep (This Protects You Later)
If you only take one thing from this page, take this:
Keep a clean digital folder with:
- SPA / purchase agreement and any addenda
- Proof of payment (receipts, bank transfer confirmations)
- Title related documents
- Rental contracts and rental receipts
- Management contracts and statements
This makes resale and bank transfers easier and reduces compliance friction.
Frequently Asked Questions
Do developers ever cover the 4% transfer tax?
Sometimes, as a promotion on selected new builds. Always confirm in writing exactly what is covered.
Is the annual property tax always payable?
Not always. Tax on Immovable Property (ToIP) is 0.1% per year on assessed value above KHR 100 million. Properties below threshold are generally exempt.
What withholding tax applies to my rental income?
It depends on whether you are treated as resident or non-resident and whether the payer is a withholding agent. Many summaries reference 14% withholding on Cambodian-source payments to non-residents. See our Rental Management guide for practical implications.
Is real estate capital gains tax active now?
Real estate CGT has been subject to multiple deferrals. Confirm with MEF/GDT guidance or your lawyer near your sale date because tax rules can change. See our Exit Strategy guide for resale planning.
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