VLP Legal Press #5
What Property-Related Taxes/Fees Should You Know About in Cambodia?
Immovable Property Tax
What is it?
A tax imposed on “Immovable Property,” which includes land (with or without construction), houses, residences, buildings, or any construction with or without walls or roofs.
How much is it?
0.1% of the property’s value, as determined by the Immovable Property Assessment Committee.
When is it due?
Annually, by 30 September.
Who pays it?
The owner, occupant, or final beneficiary.
Are there exemptions or incentives?
Yes. Exemptions apply to:
Property valued at KHR 100 million or less
Agricultural land
Property used exclusively for religious or charitable purposes
Property in Special Economic Zones used for agriculture, industry, or services
Property damaged by force majeure
Buildings less than 80% completed and not in use
Unused Land Tax
What is it?
A tax on land that is not being used, regardless of whether it has buildings, and located outside areas subject to Immovable Property Tax.
How much is it?
2% of the land’s value, as assessed by the Land Evaluation Commission.
When is it due?
Annually, by 30 September, starting from 2025.
Who pays it?
May be:
The owner with a land title
The occupant without a land title
The final beneficiary with rights to use, manage, or reside on the property
Are there exemptions or incentives?
Yes. Exemptions apply to:
Land used for agriculture (with official approval)
Land used for registered economic activity
Land under a lease agreement
Land in Special Economic Zones serving productive activities
Land used by registered educational or vocational institutions
Land under 5 hectares (no need to declare or pay)
Maintenance Fee (for Borey or Co-Owned Units like Condominium)
What is it?
A shared expense among co-owners for maintaining and repairing common areas and covering public service fees.
How much is it?
Set in the Internal Regulation by the Developer, typically based on the size of each private unit.
Who pays it?
Each co-owner of the Borey or co-owned building.
Transfer Tax
When is it payable?
Upon the transfer or sale of immovable property.
How much is it?
4% of the higher of:
• The property’s assessed value (by the tax authority), or
• The value stated in the legal document
Who pays it?
Legally, the transferee (buyer), though parties often negotiate this.
Are there exemptions or incentives?
Yes. Stamp duty relief may be available for first-time buyers, subject to conditions and time limits. Always check the latest regulations.
Capital Gains Tax
What is it?
A 20% tax on the profit from selling, transferring, or granting occupancy rights to immovable property.
How is the gain calculated?
Two methods:
Determination-based: 80% of income deemed deductible
Actual expense-based: Based on documented expenses
Are there exemptions?
Yes. Applies to:
Transfers between certain relatives (excluding siblings and in-laws)
Property used as the taxpayer’s principal residence for at least 5 years
Is it currently in effect?
No. Implementation is delayed until the end of 2025.
Tax on Rental Income
Is rental income taxable?
Yes – via a 10% withholding tax (WHT). The tenant must withhold and remit this to the General Department of Taxation (GDT).
Who bears the cost in practice?
Depends on lease terms. Often, landlords require tenants to top up the 10%, paying rent plus WHT.
This information is for general reference only and does not constitute comprehensive legal advice. If you need further legal guidance, feel free to reach out to us at connect@vlplaw.co.