The buyer’s guide for Cambodia property investment
I have received a request from a reader who was interested in finding out more about buying a property in Cambodia as a foreigner and what are the charges and taxes involved.
Below is a summary of the charges and taxes involved in my purchase of a SOHO unit in The Bridge Cambodia.
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Upon selection of property
- Booking Fee USD1000/S$1250 (one-time payment)
Sale & Purchase Agreement (SPA) will be provided to you within 14 days
- Upon signing SPA, 10 % of the Purchase Price (minus Booking Fee) to be paid to developer
- Legal fees of around S$50 – S$150 to be paid if using Notary Public Fee for Witnessing Signature
- Legal fees of >US$300 to be paid if using a Cambodian lawyer (optional)
Deferred Payment Scheme
For my property purchase, I will have to pay 10% of the Purchase Price every 6 months in cash until I have completed paying 50% of the Purchase Price. Upon completion, I will need to pay the remaining 50% of the Purchase Price (either in cash or mortgage loan) and Stamp Duty Fees (Transfer Fee for Hard Title) of 4% of property value.
Taxes
- 0.1% per annum tax on Immovable Properties (value determined by Immovable Property Assessment Committee)
- 10% per annum tax on Gross Rental Income
- Capital Gain Tax not applicable for individuals and 20% for corporates
- 10% VAT (one-time) is absorbed by Developer
- VAT On Resale (one-time) applicable only for VAT registered companies
If you have more questions about investing in properties in Cambodia, please feel free to contact me.