Property Tax in Cambodia

Introduction

Property tax in Cambodia is an important topic because of the country’s rapid urban growth and economic progress. As the real estate market expands, it’s vital for investors, homeowners, and policymakers to understand how property taxes work and what they mean. Knowing about these taxes can help everyone make better decisions in the market. This attention on property tax shows the need for clear rules and good practices to ensure fairness and sustainability in Cambodia’s changing economy.

Immovable Property Tax

In Cambodia, the Immovable Property Tax (TOIP) applies to various properties like houses, buildings, and land. If a property is valued over 100 million riels (around $25,000), the tax rate is 0.1% of its value. To calculate the TOIP, take 80% of the property value set by the Ministry of Economy and Finance, subtract 100 million riels. Then compute 1% of the remaining amount. Properties worth less than 100 million riels, as well as state-owned lands and agricultural or industrial lands, are exempt from this tax.

Capital Gains Tax

Cambodian tax law imposes a 20% tax on profits from selling real estate. This capital gains tax applies to all property sales and transfers. Taxpayers must pay this tax within three months of the sale. Either the seller or the buyer can pay the 20% tax on the profit, calculated using 80% of the sale price.

Stamps Tax

In Cambodia, property and company share transfers are subject to stamp tax. There are two rates: a 4% tax on asset transfers and a 0.1% tax on share transfers. If a company owns real estate worth over 50% of its total assets, it is classified as a real estate company and must pay the 4% stamp tax.

Unused Land Tax

Investors should also be aware of the unused land tax, which applies to land without buildings or with abandoned structures. The committee in charge decides which areas are considered unused. Owners of unused land will not pay the TOIP, but they must pay an annual tax of 2% based on the land’s value per square meter.

Immovable Property Rent Tax

Income from rental properties is taxed as immovable property rent tax in Cambodia. Local residents pay 10% on their total rental income, while foreigners pay up to 14%. Like the TOIP and unused land tax, this rent tax is due annually.

For further information regarding Property Tax in Cambodia, please do not hesitate to reach out to CAM Realty. Additionally, you can visit the official website of the General Department of Taxation at https://www.tax.gov.kh/km.