Property tax in Cambodia is not a single levy but an umbrella term for various taxes imposed on real estate. Understanding this multifaceted system is crucial for individuals and businesses to navigate the real estate market effectively, ensuring financial prudence, legal compliance, and a smoother property experience. For tailored advice, always consult a tax professional or legal expert. The main types of property taxes in Cambodia include:

Transfer Tax (Stamp Duty)

The Transfer Tax, also known as Stamp Duty, is a mandatory tax imposed on property transactions in Cambodia. It is calculated at a rate of 4 percent of the property’s official assessed value. This assessed value is determined by the government and is typically lower than the market price. Cambodia's General Department of Taxation oversees the administration and collection of these taxes, ensuring compliance with local regulations.

This tax is paid by the buyer and is levied to formalize the transfer of ownership. It is paid during the property registration process, a critical step that ensures the legal transfer of property rights and secures ownership.

It should be noted that exemptions or reductions may apply in certain cases, such as for low-value properties, specific government incentives, property transfers between relatives, or for government-conferred land rights.

More detail at: https://www.tax.gov.kh/en/content-detail/F3rUr4930466772102

Annual Tax on Immovable Property (TOIP)

Any owner of a hard title property in Cambodia is obligated to pay an annual tax on that property, which includes land, homes, buildings, or infrastructure. This is known as the Annual Tax on Immovable Property (TOIP).

This tax is imposed at a rate of 0.1 percent on the value of immovable property exceeding KHR 100 million (approximately US $25,000). The property's value is assessed by the Immovable Property Assessment Committee. Property owners, occupants, or final beneficiaries must register with the General Department of Taxation (GDT) and declare this tax by September 30 annually.

There are several exemptions, which include:

Properties valued at or below the threshold (KHR 100 million).
Agricultural land actively used for cultivation.
Properties owned by the government or diplomatic missions.
Properties located in Special Economic Zones and used for agricultural, industrial, or service activities.
Notification 014 further clarifies that agricultural land in urban areas, as classified on the title deed, also qualifies for exemption unless used for non-agricultural purposes.

Calculating and Paying Property Tax in Cambodia

To calculate the property tax, the following formula is used:

Property Tax=(Tax Base×80%−US$25,000)×0.1%

Find out more at: https://www.tax.gov.kh/en/content-detail/1xXDC5327468613949

Cambodian Unused Land Tax (ULT)

This is an annual tax. It is levied on land without construction and abandoned land with structures located in various cities and in all areas designated by the Committee for the Assessment of Unused Land. This tax must be paid at a rate of 2 percent of the market value of undeveloped or unused land, as determined by the Land Assessment Committee.

Exemptions are provided for:

Cultivated agricultural land
Land used for registered economic activities
Land within Special Economic Zones.
Find out more at: https://www.tax.gov.kh/en/content-detail/KMiNP2746566327965

Cambodia Capital Gains Tax (CGT)

The implementation of the Capital Gains Tax on specific types of income, including lease agreements, investment assets, intellectual property, goodwill, and foreign currency.

The tax is imposed on the profits realised from selling or transferring immovable property and is determined by deducting eligible expenses from the sale price.

Capital Gains Tax is planned to be subject to tax at 20% on gains from the sale or transfer of immovable property when it comes into force and taxpayers can choose between an 80% flat deduction without documentation or an actual expense deduction supported by evidence.
Exemptions applying to CGT in Cambodia when they come into effect are included on primary residences that have been owned and occupied for at least five years.
Find out more at: https://www.tax.gov.kh/en/content-detail/HcLK772202174680517

Tax On Rental Income In Cambodia

Rental income tax is set at a rate of 10% of the total rental income. This tax must be paid monthly, starting from the date the contract was signed or agreed upon.

Property owners must declare the rental contract to the local tax authority where the rented property is located within 15 days of signing the contract or any changes to the contract. A copy of the rental contract must be attached to the declaration.

When a rental agreement ends, the property owner must notify the tax authority in writing 15 days in advance.

In cases where the property owner refuses to pay the rental tax on the house or land, the tenant is responsible for withholding the rental payment to ensure the full tax amount is paid.

Find out more at: https://www.tax.gov.kh/en/content-detail/oBhN49355466511052