Property Purchase Taxes and Fees in Cambodia - 2025

Property Purchase Taxes and Fees

Purchasing property in Cambodia, while straightforward in terms of procedures, involves several taxes and fees that investors should understand before signing any agreements.
Similar to Thailand, this country offers foreign investors an attractive tax system — low, transparent, and based on the US dollar (USD).

This article provides a complete breakdown of costs: from transfer tax to notary fees and annual obligations associated with property ownership.

1. Transfer Tax

The most significant cost when purchasing property is the Transfer Tax, which amounts to:

4% of the property value stated in the title deed (Hard Title or Strata Title).

Who pays the tax?

Typically the buyer, although in some cases (e.g., developer projects) the cost may be included in the purchase price.

💰 Example:
Purchase of an apartment valued at $100,000 USD
→ Tax 4% = $4,000 USD (approx. €3,700)

📄 Source: General Department of Taxation Cambodia (GDT)

2. Registration Fee

Every property purchase must be registered with the Ministry of Land Management, Urban Planning and Construction (MLMUPC).
Registration costs range from 1% to 2% of the property value.

💡 Registration ensures full legal protection and confirmation of ownership in the national registry.

📄 Source: Ministry of Land Management, Urban Planning and Construction – Cambodia

3. Notary and Legal Fees

Property purchases require document authentication by a notary and often involvement of a local law firm.

Type of Fee	Amount (USD)	Value in EUR
Notary authentication	$300–500 USD	€280–465
Sales & Purchase Agreement	$500–1,000 USD	€465–930
Legal verification (Due Diligence)	$400–700 USD	€370–650

💡 Recommended law firms: Bun & Associates, Sciaroni & Associates, DFDL Cambodia.

4. Annual Property Tax

Every property owner with assets valued above $25,000 USD must pay an annual 0.1% tax on market value.

💰 Example:
Property value: $150,000 USD
→ Tax: 0.1% = $150 USD annually (approx. €140)

This tax applies to both citizens and foreigners, regardless of ownership type (leasehold, freehold, condo).

📄 Source: CBRE Cambodia – Property Tax Overview

5. Rental Income Tax

Investors renting out property in Cambodia must pay tax on rental income.

Type of Rental	Tax Rate	Additional Notes
Individual rental	10% of gross income	registration with GDT required
Corporate rental	20% CIT	cost deductions possible

💡 Example: renting a condo for $800 USD monthly = $80 USD tax (approx. €75).

6. Capital Gains Tax

Since 2024, a 20% tax on capital gains from property sales applies, calculated as the difference between sale and purchase price (after deducting documented costs).

💡 If the property was held for more than 5 years, preferential rates or tax deferrals may be available.

📄 Source: Knight Frank Cambodia – Investment & Tax Report 2024

7. Banking and Administrative Fees

Most transactions are conducted in US dollars (USD).
Banks charge small commissions for international transfers:

Type of Fee	Average Rate	Notes
International transfer	$20–50 USD	depending on bank
Domestic USD transfer	$1–2 USD	within Cambodia
Cash withdrawal	0.5–1%	daily limit

Banks commonly serving investors: ABA Bank, Canadia Bank, Acleda Bank.

8. Additional Investment Costs

Type of Cost	Amount	Description
Translation fees	$50–100 USD	English ↔ Khmer
Property insurance	0.2–0.5% of value annually	depending on location
Condo management fee	$1–2 USD/m² monthly	common area maintenance

💡 Premium developers (e.g., Urban Village, Morgan EnMaison) often offer 0% management fees for the first year.

9. Comparison with Other Asian Markets

Country	Transfer Tax	Property Tax	Capital Gains Tax	Market Currency
Cambodia	4%	0.1%	20%	USD
Thailand	6.3%	0.02–0.1%	5–20%	THB
Vietnam	2%	0.03%	25%	VND

💡 Cambodia remains one of the most affordable countries in Asia in terms of transaction taxes, making it attractive for European investors.

Summary

Cambodia's tax system is simple, transparent, and investor-friendly.
The primary cost is the 4% Transfer Tax, but total transaction expenses rarely exceed 7–8% of the property value.

Thanks to its dollar-based economy and stable regulations, Cambodia offers some of the lowest barriers to entry in Asia.
With proper legal structuring, investors can achieve high ROI with minimal tax burden.

FAQ

Do foreigners pay taxes in Cambodia?
Yes – on property purchase, rental income, and sales, in accordance with local tax regulations.

Who pays the transfer tax?
Typically the buyer, unless otherwise specified in the contract.

Are there tax benefits for foreign investors?
Yes – in condo projects, developers often offer partial Transfer Tax exemptions.

Does Varsovia Estate assist with tax matters?
Yes – we work with local tax advisors in Phnom Penh and Sihanoukville.

About Varsovia Estate

Varsovia Estate is an agency specializing in premium real estate in Thailand and Cambodia. We help investors analyze, purchase, and manage properties in Southeast Asia. We combine European service standards with local knowledge and experience. Our goal is to ensure maximum security and profitability for our clients' investments.