Cambodia Property Taxes in 2026: A Practical Guide

Prepared by the NovAsia Editorial Team

Buying an apartment in Cambodia can create several different tax obligations at different stages of ownership. A buyer may face 4% stamp duty when title is transferred, annual Tax on Immovable Property at 0.1% of the assessed taxable value above KHR 100 million, and tax on rental income. Capital Gains Tax on real estate remains deferred until 1 January 2027.

The main mistake is to add several headline rates together and assume the result is the final tax bill. Stamp duty may not be calculated from the advertised price. Annual property tax is based on an official assessment rather than necessarily the price in the Sale and Purchase Agreement. Rental tax treatment depends on who owns the property, who pays the rent and how the rental arrangement is structured.

The 2026 stamp-duty relief measures also cannot be assumed to apply to every foreign buyer or every condominium. Eligibility should be confirmed for the exact transaction before it is included in the investment model.

The tax map for a property owner

Stamp duty, annual property tax and rental tax are paid to the state. Service charges, sinking-fund contributions and management fees are paid to private parties. All affect the owner's cash flow, but they have different legal bases and calculation methods.

Stamp duty on the transfer of ownership

Cambodia applies registration tax, commonly called stamp duty or transfer tax, when ownership or possessory rights in real estate are transferred. The standard rate is 4%. As a general rule, the recipient of the right is treated as the taxpayer, although the SPA may allocate the economic cost differently.

A developer may advertise that transfer fees are included or offer to absorb the charge. This should be stated clearly in the contract. The phrase “all fees included” is not sufficiently precise unless it identifies the taxes and registration costs covered.

The tax base is not always the marketing price. Current professional tax summaries explain that the General Department of Taxation may use the official value set by the Ministry of Economy and Finance or a higher value shown in the transaction documents.

These examples exclude legal fees, bank charges, title-processing costs and any available relief.

Stamp-duty relief available in 2026

Notification No. 001 of 16 January 2026 extended selected relief programmes for borey and condominium purchases until 31 December 2026.

A buyer should not assume that these allowances apply merely because the unit is a condominium. The project, developer licensing, type of transfer, buyer status and transaction history may all matter. The GDT must accept the relevant treatment.

When a developer markets “zero transfer tax”, the transaction documents should explain the legal basis and state who bears the cost if the tax authority rejects the relief.

Example using the $70,000 deduction

This calculation is valid only if the buyer and transaction qualify for the deduction.

When stamp duty arises on an off-plan purchase

An off-plan buyer signs an SPA and pays instalments before an individual strata title exists. The contract should therefore explain:

• when the project is expected to issue strata titles;
• who files the transfer documents;
• when the official taxable value will be determined;
• who pays if relief is unavailable;
• which registration services are included;
• what proof of payment or exemption the buyer will receive.

A relief programme available in 2026 should not automatically be built into the economics of a project completing several years later. The relevant date may be the legal transfer of title rather than the SPA signing date.

Annual Tax on Immovable Property

Tax on Immovable Property, or ToIP, is generally charged annually at 0.1% of the official taxable value above KHR 100 million. If the assessed value does not exceed that threshold, no ToIP is due.

The value is determined by the Immovable Property Assessment Committee. The SPA price cannot automatically be treated as the annual tax base. Older simplified explanations sometimes apply an 80% coefficient, but current professional summaries focus on the official assessment less the KHR 100 million threshold. A universal formula should not be used without checking the current GDT assessment.

Using an approximate threshold equivalent of $25,000 only to illustrate the order of magnitude:

This is an illustration, not a tax notice. Property above the threshold must generally be registered for tax purposes, and the annual declaration and payment are due by 30 September.

Annual tax is separate from condominium charges

ToIP should not be confused with the charges imposed by the building. A condominium owner may also pay:

• service charges;
• sinking-fund contributions;
• utility charges;
• insurance for common areas;
• rental-management fees.

If a developer offers “free management” for a fixed period, the SPA should clarify whether this covers only management fees or also service charges, sinking fund, title processing and annual property tax.

Rental income: why 10% and 14% are not interchangeable

The shorthand “10% for residents and 14% for non-residents” is too broad.

Professional tax guidance describes a 10% house and land rental tax on gross rental income for an individual landlord. Gross income means that management fees, repairs and vacancy do not necessarily reduce the tax base.

A separate withholding-tax system may apply when a Cambodian taxpayer carrying on business pays rent or other Cambodian-source income:

• rent paid to a resident may be subject to 10% withholding tax;
• Cambodian-source income paid by a resident business to a non-resident may be subject to 14% withholding tax;
• Cambodian real-estate income is Cambodian-source income.

Short-term accommodation may create additional business-registration, VAT or Tax on Income issues. A daily-rental operation should not be modelled as ordinary long-term residential rent without separate advice.

The correct sequence is to identify the landlord, tenant and management company, then determine who has the obligation to report or withhold.

Worked example: net rental yield

Assume a $70,000 apartment rents for $450 per month and receives 11 months of rent during the year.

If a 14% withholding treatment applied instead, the illustrative withholding would be $693. Income after the same costs would fall to about $2,802, or roughly 4.0% of the purchase price.

This is not a universal tax model. It demonstrates why a quoted gross yield of 7–8% should not be compared directly with the owner's net return.

Tax in the owner's country of residence

Paying Cambodian tax may not end the owner's obligations. The country where the owner is tax resident may require disclosure of the property, foreign bank accounts and rental income. It may also impose additional tax or allow a foreign-tax credit.

Citizenship alone does not determine the result. A Russian citizen living in Spain, Thailand, Kazakhstan or Russia may face different reporting and tax obligations.

Owners should retain Cambodian tax receipts and withholding certificates. Without evidence of tax paid, a foreign tax authority may refuse a credit even when one is otherwise available.

Tax on sale in 2026

GDT Notification No. 041 of 2 January 2026 postponed the application of the new Capital Gains Tax regime to real estate until 1 January 2027. The 20% CGT regime therefore does not apply to a real-estate disposal completed in 2026 under the current timetable.

That does not mean a sale is cost-free. A transaction may still involve:

• stamp duty on the transfer;
• brokerage fees;
• legal and administrative expenses;
• tax consequences if the activity is treated as a business;
• tax in the seller's country of residence.

A sale planned after 2026 should include a CGT scenario. The 20% rate applies to taxable gain, not to the entire sale price.

For example, if a unit is bought for $70,000 and sold for $90,000, the gross gain is $20,000. Twenty per cent of that amount is $4,000 before taking account of any permitted deductions or alternative calculation method.

Taxes and transaction costs are not the same

Government taxes

Other ownership costs

A buyer should request a full closing statement showing the recipient, legal basis, due date and refundability of every amount.

Full capital requirement for a $70,000 apartment

Assume there is no confirmed stamp-duty relief.

If relief is confirmed and stamp duty is reduced to zero, the required capital falls by $2,800. That saving should not be assumed until eligibility is documented.

During ownership, the investor must also budget for ToIP, service charges, management, repairs and tax on rental income. The advertised price is therefore not the full cost of the investment.

Documents to retain

A complete tax file should include:

• SPA and all schedules;
• booking form and invoices;
• bank-transfer evidence;
• title-transfer documents and strata title;
• stamp-duty assessment or relief confirmation;
• GDT property registration;
• annual ToIP receipts;
• rental and management agreements;
• withholding-tax certificates;
• invoices for capital improvements;
• sale documents.

These records may be needed during a tax review and may support the acquisition cost or deductible expenses when CGT applies.

Common mistakes that materially change the investment result

Major errors include calculating 4% only from the advertised price, treating tax relief as guaranteed, using an unconfirmed annual-tax formula, and automatically choosing either 10% or 14% for every foreign landlord.

It is also incorrect to call the service charge a tax, treat the CGT postponement as an absence of selling costs, or ignore the owner's country of tax residence. Combined, these errors can move the expected net yield by several percentage points.

Checklist before paying a reservation fee

Before a non-refundable payment, obtain:

1. A full cost calculation through title registration.
2. A separate stamp-duty line.
3. Written evidence supporting any relief.
4. The contractual result if the GDT rejects the relief.
5. Service-charge and sinking-fund figures.
6. An explanation of the proposed rental-tax structure.
7. The procedure for obtaining withholding certificates.
8. A sale-cost scenario.
9. Advice for the buyer's country of tax residence.

The statement “property taxes are low in Cambodia” is not a substitute for a transaction-specific calculation.

Conclusion

Cambodian property taxation can be moderate, but it cannot be reduced to one headline rate. Standard stamp duty is 4%, subject to the taxable base and possible 2026 relief. Annual ToIP is 0.1% of the official value above KHR 100 million and is normally due by 30 September.

Rental income requires more careful analysis. A 10% gross rental tax may apply to an individual landlord, while payments made by a withholding agent may be subject to 10% or 14% withholding tax depending on the parties. There is no single automatic rate for every foreign owner.

Capital Gains Tax on real estate remains deferred until 1 January 2027. Long-term buyers should nevertheless keep full records of purchase price and expenditure because the sale regime may apply later.

A reliable calculation follows the right sequence: identify the ownership structure and transfer date, confirm any relief, obtain the official assessment, determine the rental structure and then review obligations in the owner's country of tax residence.

This material is for general information only and is not individual legal, tax or financial advice. Rates, relief programmes and administrative practice must be checked for the specific property, parties and tax residence at the time of the transaction.

To obtain an up-to-date full-cost calculation for a Phnom Penh apartment, including payment schedule, title processing and recurring costs, buyers can request a project comparison from NovAsia Estate.

Sources

1. General Department of Taxation of Cambodia — Prakas No. 493 MEF.PrK and official guidance on Tax on Immovable Property.
2. PwC Worldwide Tax Summaries — Cambodia: Other Taxes and Withholding Taxes, updated 2 April 2026.
3. Ministry of Economy and Finance / Andersen in Cambodia — Notification No. 001 and guidance on 2026 stamp-duty relief for borey and condominium purchases.
4. General Department of Taxation / PwC Cambodia — Notification No. 041 GDT of 2 January 2026 on the deferral of Capital Gains Tax for real estate.
5. Andersen in Cambodia — Cambodia Tax Booklet 2023–2024.