Cambodia Announces Stamp Duty Exemption for First-Time Home Buyers in 2025

• 2 January 2025
• Property Focus
• 4102 Views

In a significant move to boost the real estate market and support first-time home buyers, the Royal Government of Cambodia has announced a one-year exemption from stamp duty for properties priced at USD 210,000 or less. This initiative will be effective from 1 January 2025 to 31 December 2025, according to the government’s announcement issued on 31 December 2024.

Eligibility Criteria for Buyers

To qualify for this tax exemption, first-time home buyers must meet specific conditions:

1. Transfer of Ownership: Buyers who previously purchased a borey or condominium before 2025 and are making their first transfer of ownership in 2025 will be eligible for a stamp duty exemption, provided the property value does not exceed USD 210,000. For homes valued above USD 210,000, a tax deduction of up to USD 210,000 will be applicable.

Second and Subsequent Properties: For those purchasing additional properties, the tax deduction will apply to the transfer of ownership or possession of real estate, capped at USD 70,000.

2. New Purchases in 2025: Individuals buying houses, condominiums, or similar properties for the first time in 2025 will also benefit from the stamp duty exemption, again applicable for homes priced at USD 210,000 or less, with the same deductions as outlined above for homes exceeding this value.

Conditions for Validity

– Buyers must ensure that their properties are purchased from developers who are registered with the Real Estate and Mortgage Regulator or the Provincial Department of Economy and Finance. The deeds should reflect the name of the registered developer or a designated representative.

– All developers are required to draft a sales contract that aligns with the actual market value of the property and submit it to the relevant tax administration prior to or during the transfer of ownership.

Special Considerations

In cases where properties are acquired from developers lacking a valid business license or when project owners face bankruptcy, buyers may still receive the aforementioned tax exemption if the transfer proceeds through the relevant ministry’s settlement mechanisms.

It is important to note that this exemption will not retroactively apply to any taxes, including administrative penalties, that have already been paid.

As the government endeavors to make homeownership more accessible, these measures are expected to foster a more robust housing market, providing significant relief for first-time buyers throughout the upcoming year.

• Policy and Strategy