Annual Property Tax in Cambodia: Rates, Rules and Investor Guide 2026

A condominium in Phnom Penh valued at $120,000 generates an annual property tax bill of approximately $80. By comparison, a similarly priced apartment in a major European capital can attract several hundred dollars in annual property levies, while a Bangkok condo of the same value may fall below the local exemption threshold entirely. Cambodia offers one of the lowest property tax burdens in Southeast Asia - but the details matter considerably for international investors.

Cambodia's annual property tax (formally introduced in 2011) applies only to properties whose market value exceeds 100 million Cambodian riel (KHR), equivalent to roughly $25,000 at 2026 exchange rates. The rate is a flat 0.1% per year on the value above that threshold. The mechanics are straightforward, but practical application requires understanding the valuation process, payment deadlines, and how Cambodian tax interacts with your home country's tax obligations.

For investors based in countries without a double taxation agreement (DTA) with Cambodia, rental income from Cambodian property may be taxable in both jurisdictions. As of 2026, Cambodia has not concluded a DTA with most European countries. Investors should model the full effective tax burden - not just the headline property tax rate - before committing capital.

Quick answer

• Annual property tax rate in Cambodia: 0.1% of market value exceeding the 100 million KHR threshold (approximately $25,000)
• Who pays: any legal property owner - Cambodian citizen or foreign national holding a qualifying title (condominiums in buildings with a maximum 70% foreign ownership share)
• Payment deadline: 30 September of each tax year
• Valuation basis: market value as determined by the General Department of Taxation (GDT), not the purchase price declared by the buyer
• Withholding tax on rental income (non-residents): 14% at source
• Late payment penalty: 2% per month on the outstanding amount

Options and scenarios

Scenario 1: Condominium in Phnom Penh at $80,000

An investor purchases a studio unit in the BKK1 district. The GDT-assessed market value is $80,000 (approximately 328 million KHR). The exemption threshold is 100 million KHR (around $25,000). Taxable base: 328 million minus 100 million = 228 million KHR. Annual tax: 228 million x 0.1% = 228,000 KHR, or roughly $55 per year. The cost is almost symbolic.

Rental income from the same unit - say $500 per month, or $6,000 annually - is subject to Cambodian withholding tax. For non-resident individuals, the rate is 14%, producing a tax charge of approximately $840 per year. That same income must also be declared in the investor's home country, with the Cambodian tax potentially creditable depending on applicable domestic rules and bilateral treaties.

Scenario 2: Villa in Sihanoukville at $250,000 (held through a company)

Foreign nationals cannot directly own land in Cambodia. Acquiring a villa therefore requires a corporate structure - typically a Cambodian company with a maximum 49% foreign shareholding - or a nominee arrangement. GDT-assessed value: $250,000 (approximately 1,025 million KHR). Taxable base: 1,025 million minus 100 million = 925 million KHR. Annual property tax: 925 million x 0.1% = 925,000 KHR, or approximately $225 per year.

When the property is held through a corporate entity, that company is also subject to Corporate Income Tax (CIT) at 20% on net profit. Annual costs of maintaining the corporate structure - accounting, auditing, and the patent tax ($300 to $1,200 per year depending on turnover) - can easily exceed the property tax itself several times over.

Scenario 3: How Cambodia compares to Thailand

Thailand introduced its Land and Building Tax in 2020. For residential property that is not the owner's primary residence (the typical situation for a foreign investor), the rate ranges from 0.02% to 0.1% depending on assessed value, with a progressive structure. A property assessed at $80,000 (approximately 2.8 million THB) generates an annual tax of roughly $15 to $75. That is lower than Cambodia at the same price point, though Thailand carries higher transaction costs at the point of purchase.

Critically, Thailand has concluded double taxation agreements with many countries, providing formal protection against double taxation of rental income. Cambodia has not. This asymmetry has meaningful implications for the effective after-tax return on rental yields.

Comparison table

Parameter	Cambodia - condo $80k	Cambodia - villa $250k (company)	Thailand - condo $80k	Thailand - condo $250k
Annual property tax	approx. $55	approx. $225	approx. $15-40	approx. $120-250
Tax rate	0.1% above threshold	0.1% above threshold	0.02-0.1%	0.02-0.1%
Exemption threshold	$25,000	$25,000	~$1.4M (primary) / none (investment)	~$1.4M (primary) / none (investment)
Rental income tax (non-resident)	14% withholding	20% CIT (company)	15% withholding	15% withholding
Double taxation agreement	None with most countries	None with most countries	Yes (with many countries)	Yes (with many countries)
Annual legal structure costs	$0 (condo)	$500-2,000 (company)	$0 (condo)	$0 (condo)
Tax payment deadline	30 September	30 September	April	April

Risks and mistakes

1. GDT valuation versus actual market price. The General Department of Taxation applies its own property value tables, which may differ from the purchase price. In practice, GDT assessments tend to be conservative, which reduces the tax charge. However, there is no guarantee this will remain the case, and formal appeal procedures are limited compared to more mature regulatory environments.

2. No double taxation agreement. For investors from countries without a DTA with Cambodia, rental income may be fully taxable in both Cambodia and the home jurisdiction. The absence of a bilateral treaty means no formal exemption or credit mechanism is guaranteed. Investors should obtain specific advice from a qualified tax professional in their country of residence before acquiring Cambodian property.

3. Nominee structures and land ownership. Purchasing a villa 'through a Cambodian nominee' is common but legally precarious. The nominated owner retains formal title and may refuse to cooperate. Cambodian courts do not consistently protect the interests of the foreign beneficial owner in such arrangements.

4. Patent tax oversight. Any Cambodian company holding property must pay an annual patent tax ($300 to $1,200 depending on declared turnover), even if the company generates no revenue. Failing to pay this levy can complicate future property transfers.

5. Late payment penalties compound quickly. A 2% monthly penalty equates to an effective annual rate of 24%. While the absolute amount on a $225 tax bill is small, outstanding tax liabilities can block the issuance of a tax clearance certificate, which is required to transfer title when selling the property.

6. Currency risk is asymmetric. The Cambodian riel is informally pegged to the US dollar at approximately 4,100 KHR per dollar. Because the exemption threshold is denominated in riel (100 million KHR), any weakening of the riel against the dollar paradoxically raises the dollar value of the threshold, potentially reducing the taxable base. The inverse is also true.

FAQ

How much is the annual property tax in Cambodia?

The rate is 0.1% of the market value exceeding 100 million KHR (approximately $25,000). For a property assessed at $80,000, the annual tax is around $55.

Do foreign nationals pay property tax in Cambodia?

Yes. Every legal property owner, regardless of nationality, is liable for the annual property tax. Foreign nationals can legally hold condominium units from the first floor upward in buildings where foreign ownership does not exceed 70% of the total units.

When is the annual property tax due in Cambodia?

Payment is due by 30 September each year. Late payment attracts a penalty of 2% per month on the unpaid amount.

Is there a double taxation agreement between Cambodia and other countries?

As of 2026, Cambodia has not concluded double taxation agreements with most European or Western countries. Investors should verify the current treaty status for their country of residence and seek professional tax advice.

How is rental income taxed in Cambodia for non-residents?

Non-resident individuals are subject to a 14% withholding tax on rental income from Cambodian property. If the property is held through a Cambodian company, corporate income tax at 20% on net profit applies instead.

Is property tax higher in Cambodia than in Thailand?

For properties valued below $100,000, Cambodia's annual property tax is typically slightly higher than Thailand's (roughly $55 versus $15 to $40). The difference is marginal in absolute terms. The more important distinction is the DTA situation and transaction costs at purchase.

Who determines the property value for tax purposes in Cambodia?

The General Department of Taxation (GDT) assigns market values using its own internal tables. The property owner does not self-declare the value.

What other taxes apply to property ownership in Cambodia?

At acquisition: a transfer tax of 4% of assessed market value. For company-held property: annual patent tax ($300 to $1,200) and CIT at 20% on net profit. At disposal: a capital gains tax is legislated at 20%, though its enforcement has been deferred multiple times. Investors should confirm the current status with a local adviser at the time of any transaction.

Can the Cambodian property tax be credited against tax owed in my home country?

This depends on whether your home country has a DTA with Cambodia and on domestic tax law provisions for foreign tax credits. In the absence of a treaty, a proportional credit may still be available under domestic rules, but the calculation is complex. Specialist advice from a cross-border tax professional is strongly recommended.

Is Cambodia tax-efficient for property investment overall?

The annual property tax itself is minimal. Cambodia's advantages include low holding costs and the absence of a vacancy tax. The key weakness is the lack of double taxation agreements with most investor home countries, which increases the effective tax burden on rental income. A full cost model - covering property tax, rental income tax, home-country tax obligations, legal structure costs, and currency exposure - should be prepared before any purchase decision.

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