Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Everything you need to know before buying real estate is included in our Cambodia Property Pack
Buying property in Cambodia involves multiple taxes and fees that can significantly impact your total investment cost.
From transfer taxes and VAT to ongoing property taxes and management fees, understanding these costs upfront is crucial for making informed investment decisions. As of September 2025, the Cambodian property market operates under a structured tax system with specific rates, exemptions, and payment procedures that vary depending on property type, location, and ownership structure.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cambodia, based on reliable facts and data, not opinions or rumors.
Cambodia property transactions involve a 4% transfer tax on government-assessed value, plus 10% VAT on new units from developers.
Annual property tax is 0.1% of taxable value above $25,000, while rental income faces 10-14% withholding tax depending on residency status.
| Tax/Fee | Rate | When Applied |
|---|---|---|
| Transfer Tax | 4% of assessed value | Property purchase |
| VAT | 10% | New units from developers |
| Annual Property Tax | 0.1% of taxable value | Yearly (properties over $25,000) |
| Registration Fees | $100-$500 | Title registration |
| Notary Fees | 0.5-1% or $100-$300 | Legal documentation |
| Rental Income Tax | 10% (residents), 14% (non-residents) | Monthly rental income |
| Management Fees | $1-$2 per m²/month | Ongoing condo maintenance |
What type of property are you buying and what determines the tax costs?
The type of property you purchase in Cambodia directly affects which taxes and fees apply to your transaction.
Condominiums, landed houses, commercial units, and land plots each have different tax implications. The location within Cambodia also matters - properties in Phnom Penh may have different processing fees compared to those in Siem Reap or Sihanoukville provinces.
Your property's title type significantly impacts costs. Freehold properties with hard titles command different fees than those with soft titles or leasehold arrangements. Strata titles for condominiums involve additional registration costs and ongoing management fees.
The agreed sale price versus the government-assessed value determines your transfer tax burden. In most cases, the assessed value is lower than the actual sale price, which can work in your favor for tax calculations.
Currency considerations also matter - while many transactions are quoted in USD, some fees must be paid in Cambodian Riel (KHR), requiring currency conversion at current exchange rates.
How much is the transfer tax and registration fee?
Cambodia charges a 4% transfer tax on the government-assessed value of the property, not the sale price.
The government-assessed value is typically 60-80% of the actual market value, which means your transfer tax will be calculated on a lower amount than what you actually pay. For example, on a $200,000 property with an assessed value of $160,000, you would pay $6,400 in transfer tax.
First-time buyers from developers can benefit from significant exemptions - the first $70,000 is exempt for Borey housing projects, and up to $210,000 can be exempt for first-time buyers purchasing directly from developers (valid until end of 2025).
The transfer tax must be paid within three months of the property transfer at the Ministry of Economy and Finance's General Department of Taxation. Payment can be made at designated government offices or authorized banks.
Late payment penalties apply at 2-10% per month, making timely payment crucial for completing your property transfer.
Does VAT apply to new properties from developers?
Value Added Tax (VAT) at 10% applies only to brand-new properties purchased directly from developers.
This VAT is typically added on top of the quoted sale price unless specifically stated as included in your purchase agreement. On a $200,000 new condo, you would pay an additional $20,000 in VAT.
Secondary market purchases between individuals do not incur VAT, making resale properties potentially more cost-effective from a tax perspective.
Developers must be registered for VAT to charge this tax, and they handle the VAT collection and remittance to the tax authorities on behalf of buyers.
Always clarify with your developer whether the quoted price includes or excludes VAT to avoid unexpected costs at closing.
What government processing fees apply at purchase?
Several government processing fees apply when registering your property purchase in Cambodia.
| Fee Type | Amount | Payment Location |
|---|---|---|
| Cadastral Registration | $100-$300 | Local Land Office |
| Title Issuance | $200-$500 | Ministry of Land Management |
| Notary Services | 0.5-1% of sale price or $100-$300 flat | Licensed Notary Office |
| Document Authentication | $50-$150 | Various Government Offices |
| Translation Services (if needed) | $100-$300 | Certified Translation Services |
| Administrative Processing | $50-$200 | Land Registry Office |
| Stamp Duty | $10-$50 | Government Revenue Office |
These fees vary by province and property type, with some charged as flat rates and others calculated per page or per title. Payment must be made in Cambodian Riel (KHR) at most government offices, though some authorized banks accept USD payments for certain fees.
How much does title upgrading or conversion cost?
Title upgrading from soft title to hard title or LMAP conversion involves both official government fees and service charges.
Official government fees range from $250-$500 per title, paid directly to the Ministry of Land Management or local land offices. These rates are standardized across Cambodia.
Service charges from legal firms or agents add another $300-$750 to handle the paperwork, translations, and processing requirements. Foreign buyers often pay higher service charges due to additional documentation and certification requirements.
Strata title conversion for condominiums involves similar fee structures but may require additional approvals and documentation, potentially increasing costs by 20-30%.
The total cost for title upgrading typically ranges from $550-$1,250, depending on complexity and service provider chosen.
What are the financing and mortgage-related fees?
Banking fees for property financing in Cambodia include several components beyond the loan interest rate.
- Application and appraisal fees: $50-$250 per application, covering property valuation and credit assessment
- Mortgage registration fee: 0.1-1% of the loan amount, typically $100-$500 for most residential loans
- Loan stamp duty: 0.1-0.5% of the total loan value, paid to government revenue authorities
- Account setup fees: $100-$200 for establishing loan servicing accounts
- Legal documentation fees: $200-$500 for mortgage agreement preparation and review
Most banks require borrowers to maintain accounts with them, which may involve monthly maintenance fees of $5-$15. Some banks also charge for loan statements, early payment penalties, or modification fees.
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What is the annual property tax rate and calculation?
Cambodia imposes an annual immovable property tax of 0.1% on qualifying properties.
The tax applies to properties with a taxable value exceeding $25,000 (KHR 100 million). The taxable base is calculated as 80% of the government-assessed market value minus the $25,000 exemption threshold.
For example, a property assessed at $100,000 would have a taxable base of ($100,000 × 80% - $25,000) = $55,000, resulting in an annual tax of $55.
The tax is due annually between June and September, with payments made to the General Department of Taxation or authorized banks. Property owners receive assessment notices by mail or can check their tax obligations online.
Exemptions apply to agricultural land, state-owned properties, and religious buildings, but residential and commercial properties are generally subject to this annual tax.
Is there a vacant or unused land tax?
Cambodia has an unused land tax at 2% of assessed value, but it's currently suspended for 2024 and limited for 2025.
For 2025, properties under 5 hectares receive a tax-free allowance, effectively exempting most residential and small commercial properties from this tax. The tax applies to land that is not actively built upon, cultivated, or used for economic or educational activities.
The government defines "unused" land as parcels that remain undeveloped for more than two years without legitimate development plans or permits. Agricultural land actively farmed is exempt from this classification.
When the tax becomes fully effective, it will be calculated on the government-assessed land value, not the purchase price. Property owners must demonstrate active use or development plans to avoid classification as unused land.
The tax is designed to encourage productive land use and prevent speculation in prime development areas.
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What taxes apply to rental income?
Rental income in Cambodia is subject to withholding tax that varies based on your residency status.
Cambodian residents pay 10% withholding tax on gross rental income, while non-residents pay 14%. This tax applies to the total rent collected without deductions for expenses or maintenance costs unless you can provide documented proof of legitimate expenses.
For a property renting at $1,000 per month, a resident owner would pay $100 in monthly tax, while a non-resident would pay $140. Annual rental income of $12,000 would result in $1,200 tax for residents or $1,680 for non-residents.
VAT at 10% applies only if you are VAT-registered as a business or if you rent through a VAT-registered property management company. Individual property owners typically don't register for VAT unless they have multiple rental properties.
Tax payments are due monthly, and late payments incur penalties and interest charges that can significantly increase your tax burden.
What ongoing building and community charges should you expect?
Condominium owners in Cambodia face several ongoing monthly charges beyond property taxes.
Management fees typically range from $1-$2 per square meter per month, covering building maintenance, security, common area cleaning, and administrative costs. A 90-square-meter unit would incur $90-$180 monthly in management fees.
Sinking fund contributions of $0.20-$0.50 per square meter per month build reserves for major repairs and replacements. This adds another $18-$45 monthly for a 90-square-meter unit.
Additional charges may include garbage collection ($10-$30 monthly), parking fees ($20-$50 for covered parking), and utility deposits or connection fees for electricity and water services.
Landed house owners avoid condo management fees but may pay community fees in gated developments, typically $20-$100 monthly depending on amenities and services provided.
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How much capital gains tax applies when selling?
Cambodia's capital gains tax rate is 20% on the profit from property sales, though implementation has been postponed until end-2025 for individual sellers.
When the tax becomes effective, it will apply to the gain calculated as sale price minus purchase price minus allowable deductions. Deductible costs include documented improvements, real estate agent fees, legal fees, and taxes paid during ownership.
For example, if you sell a property for $300,000 that you bought for $200,000, with $20,000 in allowable costs, your taxable gain would be $80,000, resulting in $16,000 in capital gains tax.
The tax applies to both residents and non-residents, though non-residents may face additional withholding requirements. Proper documentation of all costs is essential to minimize your tax liability.
Corporate sellers are already subject to capital gains tax, making individual ownership potentially advantageous for investment properties.
What are the procedures, deadlines, and penalties for each tax?
Each tax and fee in Cambodia has specific forms, payment channels, and deadlines that must be followed precisely.
| Tax/Fee | Deadline | Late Penalty |
|---|---|---|
| Transfer Tax | Within 3 months of transfer | 2-10% per month overdue |
| Annual Property Tax | June-September annually | 2% per month + interest |
| Rental Income Tax | Monthly by 20th of following month | 10% penalty + 2% monthly interest |
| VAT (if applicable) | Monthly by 20th | 10% penalty + 2% monthly interest |
| Capital Gains Tax | Within 3 months of sale | 20% penalty + interest |
| Registration Fees | At time of transaction | Delays in title transfer |
| Title Upgrade Fees | Within processing period | Application expiry, restart required |
Payment channels include designated government offices, authorized banks (ACLEDA, Canadia Bank, Vattanac Bank), and some online platforms for certain taxes. Most fees require payment in Cambodian Riel, though some offices accept USD at official exchange rates.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Cambodia's property tax structure is crucial for making informed investment decisions in this growing Southeast Asian market.
While the initial transaction costs can be significant, the relatively low annual property taxes and the current suspension of capital gains tax for individuals make Cambodia an attractive destination for property investment.
Sources
- CBRE Cambodia - Property Tax Guide
- RealEstate.com.kh - Cambodian Property Costs
- Global Property Guide - Cambodia Taxes
- Knight Frank Cambodia - Property Tax Guide
- Good Value Property - Buying Process
- Legal 500 - Tax Incentives 2025
- LIA Global - Transaction Tax System
- RealEstate.com.kh - Managing Property Overseas