Cambodian Government Extends Capital Gains Tax for Real Estate Sector Until 2027

• 7 January 2026
• Local News
• 1042 Views

Strategic decision aims to sustain momentum in the property market as authorities defer 20% tax on real estate profits for another year

The Royal Government of Cambodia has officially announced a further extension of the tax for capital gains on real estate, pushing the implementation date to January 1, 2027. This directive, issued through the Ministry of Economy and Finance, follows a high-level approval from Prime Minister Samdech Thipadei Hun Manet on December 24, 2025. The decision was formalized in an announcement by the General Department of Taxation on January 2, 2026, confirming that the 20% tax on profits earned from the sale or transfer of immovable property will remain suspended for the duration of the 2026 fiscal year.

This marks a significant move to support the country’s real estate and construction sectors, which have been navigating a complex period of recovery. By delaying the tax, the government intends to lower the financial burden on property owners and investors, thereby encouraging continued transactions and liquidity in the market. According to the tax authority, any capital gains realized from the sale or transfer of real estate will remain exempt from the tax until the new deadline. This policy is part of a broader package of fiscal measures designed to stimulate economic growth and maintain the attractiveness of Cambodia’s property market for both domestic and international buyers.

The capital gains tax was originally introduced with a flat rate of twenty percent on the profit made from disposing of assets, including real estate, leases, investment assets, and intellectual property. However, the implementation has been deferred multiple times since 2020 to mitigate the impact of global economic headwinds. While the tax holiday is extended for the real estate sector, industry experts note that other asset classes might still be subject to existing tax regulations. The General Department of Taxation continues to urge taxpayers to stay informed about their obligations and to utilize this extended grace period to finalize pending property transfers under the current tax-free conditions. (read more)

• property taxes
• MEF
• Capital Gains Tax
• GDT