Cambodia’s real estate market continues to offer real potential and draws in investors from a broad range of countries and territories as homebuyers. We look at the key property taxes you need to be aware of in 2025 to help you understand what can be complex property taxation components.
Cambodian Transfer Tax (Stamp Duty)
The Transfer Tax, also known as the Stamp Duty, is a mandatory tax imposed on property transactions in Cambodia and is calculated at a rate of 4 per cent of the property’s official assessed value. The Transfer Tax is determined by the government and is typically lower than the market price and Cambodia’s General Department of Taxation oversees the administration and collection of these taxes, ensuring compliance with local regulations.
This tax is paid by the buyer and it is levied to formalise the transfer of ownership and is paid during the property registration process – this ensures the legal transfer of property rights and is a critical step in securing ownership.
It should be noted that exemptions or reductions may apply in certain cases, such as for low-value properties or specific government incentives if the property is transferred between relatives or for government-conferred land rights.
Recent amendments have extended tax relief measures for properties valued at or below $70,000 until the end of 2025, and exemptions for first-time homebuyers in borey residential projects with properties priced below $210,000 which are aimed at stimulating the real estate sector amidst economic challenges.
The Ministry of Economy and Finance (MEF) also said in February 2025 that developers have been allowed to pay taxes as deferred payments for 12 to 36 months, enabling them to ease cash flow.
Annual Property Tax Immovable Property (TOIP)
Any property owner of a hard title in Cambodia is obliged to pay an annual tax on that property which could be land, homes, buildings, or infrastructure under the Annual Property Tax on Immovable Property.
This tax is imposed at 0.1 per cent on the value of the immovable property exceeding KHR 100 million (approximately US $25,000) and is assessed by the Immovable Property Assessment Committee – property owners, occupants, or final beneficiaries must register with the General Department of Taxation (GDT) and declare the tax by September 30 annually
There are also exemptions, which include:
• Properties valued at or below the threshold
• Agricultural land actively used for cultivation
• Properties owned by the government or diplomatic missions
• Properties in Special Economic Zones serving agricultural, industrial, or service activities.
• Notification 014 further clarifies that agricultural land in urban areas, classified as such on the title deed, also qualifies for exemptions unless used for non-agricultural purposes.
The Cambodian government does offer an amnesty program for unregistered properties or those with incomplete TOIP declarations, allowing property owners to register and pay back taxes without penalties by June 2025.
Calculating And Paying Property Tax In Cambodia
To calculate the property tax, 80% of the tax base is used, US $25,000 is subtracted, and 1% of the total is calculated – the following is the formula for property taxes: (Tax Base)*80%-($25,000) *0.1% is the property tax.
Taxpayers have the option to make payments either at their local tax office or through banks and several Cambodian banks have this option via their mobile apps.
• For properties that are already registered, taxpayers must provide their Property Tax Registration ID or the tax payment receipt from the previous year.
• If the property is not yet registered, the taxpayer must visit the local tax office responsible for the property and complete the registration process.
It should be noted that depending on the property type and transaction, additional documents may also be required. It is advised to consult with the local tax office for a comprehensive list of necessary paperwork.
Cambodian Unused Land Tax (ULT)
The Tax on Unused Land in Cambodia differs from the annual tax on Immovable Property – the latter is levied on property within a designated taxable code, while the ULT targets unused land located outside of these that exceeds 5 hectares per plot. Even if the property is partially constructed, it can be taxed if it meets the conditions.
The tax base is determined by the Land Evaluation Commission, and owners are permitted to deduct five hectares from the taxable area. This tax is levied at 2% of the market value on land that remains undeveloped or unutilised, as determined by the Unused Land Appraisal Committee.
The declaration and payment of The Tax on Unused Land was suspended until the end of 2024 and in 2025, new conditions for tax exemptions apply. Landowners must register and declare TUL annually by September 30.
Exemptions are provided for:
• Cultivated agricultural land
• Land used for registered economic activities
• Land within Special Economic Zones.
Cambodia Capital Gains Tax (CGT)
The implementation of the Capital Gains Tax on specific types of income, including lease agreements, investment assets, intellectual property, goodwill, and foreign currency, has been further delayed until the end of 2025.
The tax is imposed on the profits realised from selling or transferring immovable property and is determined by deducting eligible expenses from the sale price.
• Capital Gains Tax is planned to be subject to tax at 20% on gains from the sale or transfer of immovable property when it comes into force and taxpayers can choose between an 80% flat deduction without documentation or an actual expense deduction supported by evidence.
• Exemptions applying to CGT in Cambodia when they come into effect are included on primary residences that have been owned and occupied for at least five years.
Property sellers and investors should stay informed about compliance requirements to avoid unexpected tax liabilities when CGT enforcement begins.
Tax On Rental Income In Cambodia
Rental income tax is set at 10 per cent of gross rental income but is rarely enforced for individual homeowners and more so for lease-registered and commercial properties, such as serviced apartments, where landlords must report rental income and expenses monthly.
The total rental income before deductions is 10 per cent, so if a landlord charges US $500 per month, the corresponding rental income tax would be $50 per month ($500 × 10%).
Many individual landlords do not declare or pay this tax and it can also lead to foreign tenant issues if the details are not completed on the FPCS which is required. The government has said it will be doing more checks in 2025 and as Cambodia continues its tax reform & transparent tax collection – stricter enforcement could be introduced in the future.
You are advised to stay up to date and check with the Ministry of Economy and Finance, licensed tax advisors, or trusted platforms like realestate.com.kh for tailored guidance and the latest insights. realestate.com.kh
- Tags: Cambodian Property Taxes, Realestate.com.kh
