Annual Property Tax in Cambodia: Rates and Obligations in 2026

Cambodia's annual property tax stands at just 0.1% of assessed market value - but only on the portion exceeding 100 million KHR (approximately 25,000 USD). This is one of the lowest rates in Southeast Asia. For an international investor purchasing a condominium unit in Phnom Penh for 80,000 USD, the annual tax liability will not exceed 55 USD. The headline figure sounds almost trivial, but the details deserve careful attention - particularly around valuation procedures, payment deadlines, and the absence of a double tax treaty with most Western countries.

Cambodia's property tax framework is straightforward on paper, yet navigating it in practice requires familiarity with local assessment procedures, filing obligations, and the broader fiscal picture that includes transfer tax, withholding tax on rental income, and currency considerations. This guide covers every layer.

Quick answer

• Annual rate: 0.1% of market value as assessed by local authorities
• Tax-free threshold: the first 100 million KHR (approximately 25,000 USD) of assessed value is exempt
• Payment deadline: 30 September each year
• Who pays: the registered property owner (in condominium buildings, each unit owner files separately)
• Late payment penalty: 2% per month on the outstanding amount
• Legal basis: Law on Property Tax 2010 (Royal Kram NS/RKM/0210/003)

Options and scenarios

Scenario 1: Studio apartment in Phnom Penh valued at 60,000 USD

At an exchange rate of approximately 4,060 KHR per USD, 60,000 USD equals around 244 million KHR. After deducting the 100 million KHR threshold, the taxable base is 144 million KHR. Annual tax: 144,000 KHR, or roughly 35 USD. The administrative burden here is minimal, but filing the declaration on time remains a legal obligation regardless of the amount due.

Scenario 2: Apartment in Siem Reap valued at 120,000 USD

Approximately 487 million KHR. After the exemption threshold, the taxable base is 387 million KHR. Annual tax: 387,000 KHR, or approximately 95 USD. One important caveat: local authorities may apply an assessed value higher than the purchase price if they consider the transaction to have occurred below prevailing market rates. An independent appraisal at the time of purchase provides useful protection against this.

Scenario 3: Luxury penthouse in Phnom Penh valued at 350,000 USD

Approximately 1,421 million KHR. Taxable base: 1,321 million KHR. Annual tax: 1,321,000 KHR, or approximately 325 USD. Even in the premium segment, the annual holding cost remains very competitive. A comparable asset in Bangkok would generate a materially higher local tax liability.

Scenario 4: Rental income and withholding tax

The annual property tax is only one element of the fiscal equation. Rental income earned in Cambodia by non-residents is subject to a 14% withholding tax (WHT) deducted at source by the tenant or property manager. Investors who are tax residents in countries without a double tax treaty with Cambodia - which includes most European nations - must also report this income domestically. The withholding tax paid in Cambodia can generally be credited against domestic tax, but the mechanics vary by jurisdiction and should be confirmed with a qualified tax adviser before purchase.

Scenario 5: Cambodia vs Thailand - annual property tax comparison

Thailand's Land and Building Tax for residential property ranges from 0.02% to 0.1% of assessed value. A key distinction is the primary residence exemption: Thai law provides a threshold of 50 million THB (approximately 1.4 million USD) for owner-occupiers. Foreign investors who do not reside in the property as their primary home do not qualify for this exemption. As a result, the effective annual tax burden in Thailand can exceed that of Cambodia, particularly for mid-range investment properties in the 60,000-200,000 USD bracket.

Comparison table

Parameter	Cambodia	Thailand	Reference: UK
Annual rate	0.1% of assessed value	0.02%-0.1% (residential)	Council tax (fixed bands, avg. approx. 2,000 GBP/year)
Tax-free threshold	100 million KHR (approx. 25,000 USD)	50 million THB (approx. 1.4 million USD) for owner-occupiers only	N/A
Valuation basis	Market value (official assessment)	Assessed value by Treasury Department	Property band (fixed)
Payment deadline	30 September	April	Monthly / annually
Late penalty	2% per month	1% per month + 40% surcharge after 90 days	Interest + surcharges
Double tax treaty coverage	Limited - absent for most EU/Western countries	Broad treaty network (60+ countries)	N/A
Rental WHT for non-residents	14% at source	5%-35% progressive (or 15% flat)	20% standard rate

Risks and mistakes

1. Purchase price vs official assessed value. Cambodian local authorities use their own market value tables. If a unit was acquired at a developer discount, the tax authority may apply a higher assessed value as the tax base. The practical difference in annual tax is usually small, but obtaining an independent appraisal at acquisition provides a useful benchmark and supports any valuation challenge.

2. Absence of double tax treaties with most Western countries. Cambodia's treaty network is limited. Investors from the EU, UK, US, and Australia must rely on domestic rules in their home jurisdiction to avoid full double taxation on rental income. The 14% Cambodian WHT can typically be credited against home-country tax, but this depends on local legislation and does not guarantee complete tax neutrality. Professional advice before purchase is strongly recommended.

3. Missing the filing deadline. The Cambodian tax system does not issue automatic reminders. Failure to file and pay by 30 September triggers a 2% monthly penalty on the outstanding amount. At small absolute figures this is a minor financial cost, but accumulated arrears can become a legal encumbrance that delays or complicates a future sale.

4. Transfer tax at acquisition. In addition to the annual property tax, buyers pay a 4% transfer tax on the registered transaction value at the time of purchase. This is a one-time cost but material in practice: on a 120,000 USD apartment it amounts to 4,800 USD. Some developers absorb this fee as part of a promotional package, but this is not standard practice and should be verified contractually.

5. Dual-currency environment. Cambodia operates a de facto two-currency system (KHR and USD). Property taxes are denominated in KHR but payments are accepted in USD at the rate set by the National Bank of Cambodia (NBC). The KHR/USD rate has remained stable in the 4,000-4,100 range for an extended period, but international investors should be aware that USD/home currency fluctuations affect the real cost of holding Cambodian assets when reporting returns in their domestic currency.

FAQ

How much is the annual property tax in Cambodia?

The rate is 0.1% of the assessed market value, applied only to the portion exceeding 100 million KHR (approximately 25,000 USD). For a property valued at 100,000 USD, the annual tax will be approximately 75 USD.

Do foreign buyers pay annual property tax in Cambodia?

Yes. Every registered property owner - regardless of nationality - is subject to the annual property tax obligation. Foreign nationals can legally own units in multi-storey condominium buildings from the first floor above ground level upwards.

When is the annual property tax due in Cambodia?

The payment deadline is 30 September each year. After this date, a penalty of 2% per month is applied to the outstanding tax amount.

Is there a double tax treaty between Cambodia and most Western countries?

Cambodia has a limited treaty network. Most EU member states, the UK, the US, and Australia do not have a double tax treaty with Cambodia. Investors from these jurisdictions should review their domestic rules on foreign tax credits with a qualified adviser before committing to a purchase.

What withholding tax applies to rental income in Cambodia for non-residents?

Non-residents are subject to a 14% withholding tax (WHT) on gross rental income. This is deducted at source by the tenant or the property management company and remitted directly to the Cambodian tax authority.

How much is the transfer tax when buying property in Cambodia?

The transfer tax is 4% of the registered transaction value, paid at the time of purchase. It is conventionally the buyer's responsibility unless a developer has contractually agreed to cover it.

Is Cambodia's annual property tax lower than Thailand's?

For mid-range investments (up to approximately 200,000 USD), the effective annual tax in Cambodia is typically lower or comparable to Thailand, primarily because Cambodia's exempt threshold (approximately 25,000 USD) is much lower than Thailand's owner-occupier exemption (approximately 1.4 million USD). Foreign investors in Thailand who do not use the property as a primary residence do not benefit from the large Thai threshold, which can make the effective Thai rate higher on smaller properties.

Can a property developer or manager handle property tax filings on behalf of the owner?

Filing and payment responsibility rests legally with the registered owner. Some developers and property management companies offer tax administration as part of a management package. However, the legal liability remains with the owner, and it is advisable to confirm compliance directly rather than relying solely on third-party assurances.

What is the total fiscal cost of owning a rental property in Cambodia?

Investors should budget for four layers of fiscal cost: the annual property tax (0.1% above the exempt threshold), a one-time transfer tax of 4% at acquisition, a 14% withholding tax on gross rental income, and any applicable tax liability in the investor's home country. The annual property tax itself is minimal, but the combined picture requires careful pre-purchase planning.

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