You don’t have to have a degree in property tax in Cambodia before you purchase a property in the country, but it does help to have some basic knowledge. So, here is our guide on five things to take into consideration on how to calculate property tax in Cambodia.
1. What is property tax in Cambodia?
Property tax in Cambodia is called the Tax on Immovable Properties (TOIP). It applies to all land, houses, infrastructure, buildings etc. The annual rate is calculated as 0.1% on properties over $25,000.
2. When are property taxes due?
The bad news is that you have to pay your property tax, the good news is that you have until 30 September to pay it.
3. How is property tax in Cambodia paid?
It is relatively straightforward to pay your tax. You can pay property tax directly at the local tax office or through a bank. You will need your Property Tax Registration ID, or tax receipt from the previous year.
4. How to calculate property tax in Cambodia?
Property tax is paid on 80% of the value of the property having deducted the first $25,000 – which means there is no tax to pay on a property lower than that figure – based on a rate of 1%.
5. What is the property transfer tax?
This is the registration tax, or stamp duty, that you have to pay when ownership of any immovable property is transferred. It is calculated on 4% of the value of the property, and must be paid within three months of the transfer of ownership, generally by the purchaser.
The above is just meant to be a rough guide to property tax in Cambodia and is by no means an exhaustive list. As with all property related matters in Cambodia you are strongly advised to seek professional guidance on all the tax ramifications before you purchase your property in Cambodia.
