As of January 2026, Cambodia’s tax landscape has entered a new era of enforcement. While the 20% Capital Gains Tax (CGT) on immovable property (real estate) has been officially postponed until January 1, 2027, the tax is now fully effective for share transfers, leases, and investment assets. For the expat community, understanding these “staggered” deadlines is critical to avoiding heavy penalties and ensuring that cross-border transactions remain legally valid.
1. The 2027 Postponement: Relief for Homeowners
The General Department of Taxation (GDT) recently confirmed that individuals selling land or buildings will enjoy another year of relief.
- New Deadline: January 1, 2027.
- What this means: If you sell your condo or villa in 2026, you are still exempt from the 20% CGT. However, you must still pay the 4% Stamp Duty (Transfer Tax) as usual.
- Strategic Window: This 12-month extension is the perfect time for property owners to “exit” or restructure their portfolios before the 20% hit begins next year.
Unlike real estate, other forms of capital are not exempt in 2026. If you are an expat business owner or investor, the 20% CGT now applies to:
- Share Transfers: Selling your stake in a Cambodian Co., Ltd.
- Leases: The transfer or sublease of long-term leasehold rights.
- Intellectual Property: Selling trademarks or patents.
- Foreign Currency: Gains made from currency exchange fluctuations during business transactions.
3. Resident vs. Non-Resident: Who Pays What?
Your tax liability depends on your residency status, which is determined by the 182-day rule:
- Tax Residents: If you stay in Cambodia for more than 182 days in any 12-month period, you are taxed on worldwide capital gains. If you sell a house in the UK or US while being a resident here, you may owe tax in Cambodia (though Double Tax Agreements or DTA usually offer credits).
- Non-Residents: You are only taxed on gains sourced within Cambodia.
4. How to Calculate Your Tax (The 80/20 Rule)
For assets that are currently taxable (or for real estate planning), the GDT allows two methods:
- Lump-Sum Deduction (Most Popular): You automatically deduct 80% of the sales price as “expenses.” You only pay 20% tax on the remaining 20% of the profit.
- Effective Rate: This equals 4% of the total sale price.
- Actual Expense Method: You deduct the actual cost of purchase, improvements, and official fees. This is better if your profit margin is very low.
Unique Insider Insight: The “3-Month Rule”
The biggest trap for expats is the declaration deadline. Once a capital gain is “realized” (the contract is signed or the payment is made), you have only 3 months to file and pay the tax. Failure to do so can result in penalties of up to 40% of the tax amount, plus monthly interest. In 2026, the GDT has digitized this process—you can now file via the GDT Taxpayer App.
Recommended Reading
- Cambodia’s 2026 FDI Outlook – See how tax policies are shaping new investment trends.
- Cambodia Postpones 20% Capital Gains Tax to 2027 – Understanding the GDT’s Decision—Why the 2027 Delay?
- The Council for the Development of Cambodia (CDC) – Official portal for Qualified Investment Projects (QIP) and tax incentives.
FAQ
Yes, if it has been your primary home for at least 5 years and you only own one residence.
If there is no “gain,” there is no tax, but you still need to file a “Nil Return” to prove the transaction.
Yes, Cambodia has DTAs with many countries (Singapore, Thailand, China, etc.). Always check if your home country is on the list.
Generally, the seller is responsible, but for share transfers, the company acts as the withholding agent.
While calculations are done in KHR (Riel), payments via the e-Payment system usually allow for USD equivalents.