Capital Gains Tax in Cambodia (2026–2027)

What retirees and property investors should actually plan for

Clarity matters more than headlines

Capital gains tax has been discussed in Cambodia for several years, often in ways that create unnecessary anxiety among retirees and foreign property buyers. The current reality is more structured—and more gradual—than many assume.

For real estate, the environment remains stable. For investors, the signal is not urgency, but preparation.

Real estate capital gains tax: deferred again

Cambodia has postponed the implementation of capital gains tax on immovable property.

As it stands:

• Capital gains tax on real estate sales is deferred until 1 January 2027

• This applies to condominiums, land, and buildings

• Standard transfer taxes and registration fees continue to apply at sale, as they always have

Until the deferral ends, gains from selling real estate are not subject to capital gains tax under Cambodia’s CGT framework.

For retirees and long-term owners, this preserves flexibility. There is no immediate pressure to sell, restructure, or accelerate decisions.

The critical distinction: share transfers are treated differently

While real estate itself benefits from the deferral, other asset classes do not follow the same timeline.

From 1 January 2026, capital gains tax applies to:

• Transfers of company shares

• Goodwill and intellectual property

• Certain financial instruments

• Lease and sub-lease transfers

• Foreign currency gains

This distinction is especially important where property is held indirectly.

If an investor sells shares in a company that owns property—rather than selling the property directly—the transaction may fall under the earlier 2026 rules. The underlying asset may be real estate, but the taxable event is a share transfer.

This matters for:

• Holding-company structures

• SPVs used for development or joint ventures

• Investors considering exits via corporate sales

The tax outcome depends on how the asset is held, not just what the asset is.

The framework rate: what to expect when implemented

Cambodia’s capital gains tax framework sets a headline rate of 20 percent on net gains.

Net gain is generally understood as:

• Sale price

• Minus acquisition cost

• Minus allowable, documented expenses

Detailed treatment of deductions, valuations, and reporting continues to be clarified through regulatory guidance. This gradual rollout is consistent with Cambodia’s broader approach to tax normalization.

What this means for retirees

For most retirees, the implications are limited—and manageable.

Typical retiree characteristics:

• Buying a condominium in their own name

• Using the property as a residence

• Holding for the long term

• Not engaging in frequent transactions

For this group:

• The real estate CGT deferral provides visibility through 2027

• Ownership decisions remain driven by lifestyle and cost control

• Planning can remain conservative and uncomplicated

The tax environment does not currently distort retirement decisions.

What this means for property investors

For investors, the message is not alarm—it is structure.

Key considerations include:

• Whether property is held directly or via a company

• Expected holding period and exit timing

• Quality of purchase documentation and cost records

• Avoiding unnecessary complexity where simple ownership suffices

Cambodia’s approach signals gradual alignment with international norms, not abrupt change. Investors who understand their holding structure are best positioned to respond calmly.

Regional context

Even with capital gains tax introduced:

• Entry prices in Cambodia remain lower than many regional markets

• Holding and transaction costs are comparatively modest

• Ownership structures are relatively straightforward

• USD-based pricing reduces currency friction

The country’s core advantage remains capital efficiency, particularly for long-term holders rather than short-term traders.

Practical planning principles

Before buying, selling, or restructuring:

• Be clear on how the asset is held

• Maintain clean, complete purchase and expense records

• Avoid clever structures unless they serve a clear purpose

• Seek professional advice before selling shares or altering ownership

In this environment, simplicity is often the strongest strategy.

Bottom line

Cambodia is not withdrawing its appeal—it is refining its framework.

For retirees:

• Ownership remains practical

• Planning remains predictable

• Time remains on your side

For investors:

• The rules are becoming clearer

• The transition is gradual

• Real estate remains one of the most straightforward asset classes in the country

This is not a warning signal. It is a system maturing with notice—and room to plan.