Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Phnom Penh's property market is included in our pack
Property ownership in Phnom Penh involves multiple taxes and fees that every buyer should understand before making an investment.
From transfer taxes to annual property taxes, VAT on new builds, and rental income taxes, the cost structure can significantly impact your overall investment returns in Cambodia's capital city.
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.
Property taxes in Phnom Penh include a 4% transfer tax, 0.1% annual property tax on properties over $25,000, and 10% VAT on new builds.
Foreign buyers face the same tax rates as locals for condominium purchases, with additional legal fees ranging from $600-$1,000.
| Tax/Fee Type | Rate/Amount | When Applied |
|---|---|---|
| Transfer Tax (Stamp Duty) | 4% of sale price | At purchase |
| Registration Fee | $50-$125 | At purchase |
| Annual Property Tax | 0.1% | Properties over $25,000 |
| VAT | 10% | New builds only |
| Capital Gains Tax | 20% of profit | At sale |
| Rental Income Tax | 10% | On rental income |
| Legal/Notary Fees | $600-$1,000 | At transaction |
What is the transfer tax when buying property in Phnom Penh?
The transfer tax, also called stamp duty, is 4% of the officially registered sale price when you buy property in Phnom Penh.
This tax is calculated based on the price stated in your sales agreement and registered with the Land Office. In some cases, authorities may refer to assessed values or prevailing market rates if they suspect the declared price is significantly below market value.
For a $100,000 condominium, you would pay $4,000 in transfer tax. This is a mandatory cost that applies to all property purchases in Cambodia's capital, regardless of whether you're buying from a developer or a private seller.
Are there registration fees when transferring property ownership?
Yes, registration fees are separate from the transfer tax and typically range from $50 to $125 per transaction.
These fees cover the paperwork and processing at the cadastre office or land registration department. Additional administrative charges may apply for document preparation and filing, but these rarely exceed $200 in total.
The exact amount depends on the complexity of your transaction and the specific requirements of the local land office handling your case.
What is the annual property tax rate in Phnom Penh?
The annual property tax rate in Phnom Penh is 0.1% of the assessed property value.
This tax only applies to properties with an assessed value over 100 million Cambodian Riel, which equals approximately $25,000 USD as of September 2025. If your property is valued below this threshold, you won't pay any annual property tax.
For a $150,000 condominium, your annual property tax would be $150. The assessed value is typically determined by local authorities based on property size, location, and market conditions in your specific area of Phnom Penh.
Are there additional land taxes in Phnom Penh?
Yes, there is an unused land tax of 2% per year that applies to vacant or undeveloped land in Phnom Penh.
This tax targets landowners who leave their property undeveloped according to government criteria. The tax is calculated on the assessed land value and aims to encourage productive use of urban land in Cambodia's growing capital.
For condominium buyers, this tax typically doesn't apply since you're purchasing developed residential property. However, if you buy land with plans to develop later, you may face this 2% annual charge until construction begins.
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Is there VAT on new properties in Phnom Penh?
Properties purchased directly from developers in Phnom Penh are subject to 10% VAT on the full purchase price.
This VAT applies only to new builds or properties sold by registered developers as their primary business. If you buy a resale property from a private individual, no VAT is charged.
For a new $200,000 condominium from a developer, you would pay an additional $20,000 in VAT. This makes new properties significantly more expensive than comparable resale units in Phnom Penh's property market.
Do foreigners pay extra taxes when buying property in Phnom Penh?
Foreign buyers pay the same taxes as Cambodians when purchasing condominiums in Phnom Penh.
There are no additional government taxes specifically targeting foreign buyers. However, foreigners can only buy strata-title properties (condominiums) above the ground floor, as land ownership is restricted to Cambodian citizens.
You may encounter higher legal and due diligence fees when working with developers or law firms, but these are service fees, not government taxes. It's something we develop in our Cambodia property pack.
What is the capital gains tax when selling property?
Cambodia introduced a capital gains tax of 20% on the net profit when you sell property in Phnom Penh.
The taxable gain is calculated as your actual sale price minus your acquisition cost and documented expenses. You can deduct renovation costs, transfer fees paid when buying, and other legitimate property-related expenses from your taxable gain.
If you bought a property for $150,000, spent $10,000 on renovations, and sold it for $200,000, your taxable gain would be $40,000 ($200,000 - $150,000 - $10,000). Your capital gains tax would be $8,000 (20% of $40,000).
Are there government maintenance fees for properties?
The Cambodian government and Phnom Penh authorities do not charge recurring maintenance or management fees for private property ownership.
However, condominium developments have monthly management and service fees set by the managing company or building management. These fees typically range from $0.50 to $2.00 per square meter per month in Phnom Penh.
For a 100-square-meter condominium, expect to pay between $50 and $200 monthly for building maintenance, security, common area upkeep, and utilities for shared facilities.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What is the tax rate on rental income in Phnom Penh?
Rental income from properties in Phnom Penh is subject to a 10% withholding tax on gross rental income.
This is a flat rate with no progressive brackets or exemption thresholds. The 10% tax is typically deducted before you receive rental payments, whether you rent to local tenants or expatriates.
If you collect $1,500 monthly rent, you'll pay $150 in tax each month. There are no deductions for property management costs or maintenance expenses under the current rental income tax system in Cambodia.
What are the penalties for late property tax payments?
Late property tax payments in Phnom Penh incur penalties of 2% of the unpaid amount per month.
If you owe $300 in annual property tax and pay three months late, you'll face an additional penalty of $18 (2% Ă— $300 Ă— 3 months). Additional administrative fines may apply if taxes remain unpaid for extended periods.
The penalties compound monthly, so it's crucial to pay your property taxes on time to avoid escalating costs that can significantly exceed your original tax obligation.
Are there any tax exemptions or reductions available?
Properties valued under $25,000 are exempt from annual property tax in Phnom Penh.
This exemption applies to both Cambodian and foreign property owners. Primary residences and other property types are generally taxed at the same rates, though local authorities may occasionally offer specific exemptions for social or economic development reasons.
Currently, there are no standard deductions for primary residence status or small property owners beyond the $25,000 value threshold. Tax policy in Cambodia's property sector continues to evolve as the market matures.
What are the typical legal and administrative fees for property transactions?
Budget between $600 and $1,000 for notary, lawyer, and administrative fees when buying property in Phnom Penh.
These costs cover legal due diligence, contract review, title verification, and representation during the transaction process. More complex transactions or high-value properties may require fees up to $1,500.
Working with experienced legal counsel is essential for foreign buyers navigating Cambodia's property laws. It's something we develop in our Cambodia property pack. These fees are separate from government taxes and represent professional services to protect your investment.
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 all property taxes and fees in Phnom Penh is crucial for making informed investment decisions in Cambodia's rapidly growing capital city.
From the 4% transfer tax to ongoing annual property taxes and potential capital gains taxes, these costs can significantly impact your overall returns and should be factored into your investment calculations from the beginning. It's something we develop in our Cambodia property pack.