The True Annual Cost of Owning Property in Cambodia 2026
Gross rental yields in Cambodia look attractive at 6–8% — but what is the true net yield after property tax, management fees, electricity, maintenance, and rental income tax? This guide provides a complete breakdown of all annual costs, a city-by-city comparison, and a real net yield calculation so you can model your investment accurately.
One-Time Purchase Costs vs Ongoing Annual Costs
Before examining annual holding costs, it is important to separate the two categories of property ownership costs: one-time acquisition costs and recurring annual costs. Many buyers focus on the purchase price and transfer tax, then underestimate the ongoing annual outgoings that significantly affect their true return.
One-Time Purchase Costs
Annual Recurring Costs
Immovable Property Tax (IPT): 0.1% Per Year
Cambodia's Immovable Property Tax (IPT) was introduced in 2011 and is governed by the Law on Taxation. The rate is 0.1% per year on the property's assessed value above a threshold of KHR 100 million (approximately USD 25,000 at current exchange rates). Importantly, the assessed value used for IPT purposes is set by the government — and is typically 30–50% below actual market value.
IPT Calculation Example: USD 150,000 BKK1 Condo
IPT is declared and paid to the General Department of Taxation annually. Foreign property owners must register for tax purposes in Cambodia. Failure to pay IPT results in penalties and interest. For rental properties, IPT is an allowable deduction against rental income for tax purposes.
Condo Management Fees: A Tier-by-Tier Breakdown
Building management fees are typically the largest single annual cost for condo owners who do not personally use the unit. The fee is paid monthly regardless of whether the unit is occupied or vacant.
Basic / Older Buildings
Examples: Pre-2015 buildings in Toul Kork, Daun Penh
Mid-Range (2015–2019)
Examples: The Blossom, Park Land, various Toul Kork and BKK3 developments
Premium (BKK1, Riverside)
Examples: Skylar, Bodaiju Residences, The Gateway, Urban Village
Ultra-Premium / Branded Residences
Examples: Rosewood, IHG-branded residences (when launched)
When evaluating a condo purchase, request 12 months of management fee invoices from the current owner or management company. Confirm: (1) the current rate, (2) the last rate increase and frequency of increases, (3) the current sinking fund balance, and (4) any pending special assessments for building repairs.
Electricity: The Biggest Hidden Cost in Cambodian Condos
Electricity is consistently the most surprising ongoing cost for new condo owners in Cambodia. The issue is not the national electricity rate — which at USD 0.18–0.25/kWh is comparable to regional averages — but the building pass-through markup that most condos charge.
Most Phnom Penh condo buildings purchase electricity from EDC at the commercial bulk rate (approx. USD 0.18–0.25/kWh) and resell to individual units at USD 0.75–1.25/kWh. On a 200 kWh/month usage (modest for a 1-bed with AC), the difference between the city rate and the building rate is USD 100–200 per month. Over a year, this is USD 1,200–2,400 in additional cost versus direct EDC billing. Always ask the management company for the current unit electricity tariff before purchasing.
| Scenario | Rate | Notes |
|---|---|---|
| Direct Phnom Penh EDC tariff | USD 0.18–0.25/kWh | Only if meter is directly with EDC. Rare in condos — most buildings use pass-through. |
| Building pass-through (common) | USD 0.75–1.25/kWh | Most condo buildings purchase bulk from EDC and resell to units at markup. This is legal and standard. |
| Budget: 1-bed, light use | USD 60–100/month | Low AC usage, 1 person, efficient appliances |
| Typical: 1-bed, moderate AC | USD 120–200/month | 8–12 hrs AC/day, 2 people, standard appliances |
| Heavy: 2-bed, full AC 24/7 | USD 250–450/month | Full-time AC, home office, multiple appliances |
Water Costs
Water costs in Cambodia are modest compared to electricity. The Phnom Penh Water Supply Authority (PPWSA) charges USD 0.20–0.50/m³ at the city level. As with electricity, most condo buildings apply a markup of 50–100% on pass-through water billing. Annual water costs for a 1-2 person household typically range from USD 100–250/year at building rates, making it a minor component of total annual costs.
Rental Income Tax: 10% Withholding
Foreign landlords renting out Cambodian property are subject to a 10% withholding tax on gross rental income. This applies to both individual and corporate landlords. The tax must be declared quarterly to the General Department of Taxation (GDT) and can be filed online via the GDT portal.
If your tenant is a registered Cambodian company, the company is legally required to withhold the 10% from your rent and remit it to GDT directly. If your tenant is an individual, you (the landlord) are responsible for self-declaring and paying. Non-declaration carries penalties and interest. See our full Property Tax Guide for detailed compliance instructions.
Maintenance Costs: What to Budget
Cambodia has low labour costs but some imported building materials are expensive. The most maintenance-intensive item in Cambodia's tropical climate is the air conditioning system — units need servicing at least annually and full gas recharges every 2–3 years. Budget 1% of property value per year as a maintenance reserve to avoid being caught out by larger repair bills.
| Maintenance Item | Typical Cost | Frequency |
|---|---|---|
| AC service (1 unit, annual) | USD 30–50 | Annual minimum, ideally 6-monthly |
| AC gas recharge (1 unit) | USD 50–80 | Every 2–3 years |
| Water heater replacement | USD 80–150 | Every 5–8 years |
| Full repaint (60 sqm unit) | USD 200–400 | Every 4–6 years or tenant change |
| Appliance repair / replacement | USD 50–300 | As needed |
| Plumbing (minor leak fix) | USD 20–50 | As needed |
| Annual maintenance total estimate | USD 500–1,500 | Per year for 60–80 sqm unit |
True Net Yield Calculation: USD 150,000 BKK1 Condo
The following example models the real net yield from a USD 150,000 1-bedroom condo in BKK1, rented at USD 1,000/month with professional property management. This is a realistic scenario for a mid-range BKK1 unit in 2025–2026.
Annual Cost Comparison: BKK1 vs Siem Reap vs Sihanoukville
Annual holding costs vary by city primarily due to differences in condo management fee levels. Property tax is calculated on government assessed values which tend to be proportional to property values. The table below uses a USD 100,000 condo as the comparison baseline.
| Annual Cost Item | Phnom Penh (BKK1) | Siem Reap | Sihanoukville |
|---|---|---|---|
| Immovable Property Tax (IPT) | USD 50–100/yr | USD 30–70/yr | USD 30–60/yr |
| Condo management fees | USD 1,800–3,600/yr | USD 600–1,800/yr | USD 600–1,500/yr |
| Sinking fund contribution | USD 240–600/yr | USD 0–300/yr | USD 0–240/yr |
| Electricity (owner-occupied) | USD 1,440–2,400/yr | USD 1,200–2,000/yr | USD 1,000–1,800/yr |
| Water | USD 120–240/yr | USD 80–180/yr | USD 60–150/yr |
| Building/contents insurance | USD 150–300/yr | USD 100–200/yr | USD 100–200/yr |
| Maintenance reserve (1%) | USD 1,000/yr | USD 1,000/yr | USD 1,000/yr |
| Total (approximate) | USD 4,800–8,000/yr | USD 3,000–5,500/yr | USD 2,800–5,000/yr |
Property Insurance
Property insurance is relatively inexpensive in Cambodia and is often overlooked by foreign owners. Two types are relevant for condo investors: contents/landlord insurance (covering furnishings and fit-out against damage, theft, and fire) and building insurance (usually managed at the building level by the management company). As an individual unit owner, your main exposure is your fit-out and contents.
Landlord / Contents Insurance
Covers your furnishings, appliances, and fit-out against fire, flood, theft, and tenant damage. Premiums depend on the replacement value of contents. Available from local insurers (Forte, Infinity) and international brokers. Highly recommended for furnished rental units.
Building Insurance
Most professional condo buildings maintain building insurance at the collective level, funded through management fees or a separate charge. Covers structural damage, common areas, and building-wide events. Ask the management company to confirm this is in place and when it was last renewed.
Frequently Asked Questions
What is the annual property tax rate in Cambodia?
Cambodia's Immovable Property Tax (IPT) is 0.1% per year on the assessed value of the property above a threshold of KHR 100 million (approximately USD 25,000). The government-assessed value is typically 30–50% lower than the actual market value, which makes the effective tax rate in practice even lower than the headline figure. For a USD 150,000 condo in BKK1 with a government-assessed value of USD 80,000, the taxable base above the threshold is USD 55,000, resulting in an annual tax of USD 55. IPT is paid annually and declared to the General Department of Taxation (GDT). Foreign owners must register for tax purposes; your property lawyer can assist with this.
Why is electricity so expensive in Cambodian condos compared to the city rate?
This is one of the most common surprises for new condo owners. Most Cambodian condo buildings purchase electricity in bulk from Electricité Du Cambodge (EDC) at the commercial rate (USD 0.18–0.25/kWh), then resell to individual units at a significantly marked-up rate (typically USD 0.75–1.25/kWh). This practice is legal and is how most Cambodian buildings fund their common area electricity costs, staffing, and a profit margin. The result is that electricity is the single largest ongoing cost for many residents. When evaluating a condo investment, always ask the management company for the current unit electricity rate — the difference between a building charging USD 0.75 vs USD 1.25/kWh is thousands of dollars per year.
What does the condo management fee cover and why does it vary so much?
Condo management fees in Cambodia vary from USD 50/month (basic older buildings) to USD 600+/month (branded luxury residences). The fee covers the building's shared costs: security staff, cleaning of common areas, pool and gym maintenance, elevator servicing, lobby and façade upkeep, and building management company fees. Higher-tier buildings also include concierge services, valet parking, package handling, and premium facilities. The large variation reflects the enormous difference in building quality, facilities, and management professionalism. Before purchasing, obtain 12 months of management fee invoices to understand the real cost and check whether the sinking fund is being adequately maintained.
What is a sinking fund and do I need to contribute to one?
A sinking fund is a reserve account maintained by the building's owners' association (HOA) to cover major capital expenditures — elevator replacements, roof repairs, façade repainting, pool resurfacing, generator replacement. In well-managed buildings, each unit owner contributes a monthly amount (typically USD 20–100) to this fund. Buildings without sinking funds face a serious problem when major repairs are needed: special assessments levied on all unit owners, often at short notice and for large amounts. When evaluating a condo purchase, ask for the current sinking fund balance and the monthly contribution rate. A building with zero sinking fund balance after 10 years of operation has been poorly managed and represents a financial risk.
How much should I budget for property maintenance per year?
A prudent budgeting rule is 1% of property value per year for maintenance reserves. For a USD 150,000 condo, this is USD 1,500/year. In practice, annual routine costs (AC servicing, minor repairs) run USD 300–600 for a well-maintained unit. The 1% reserve accounts for periodic larger expenditures: full repaints between tenants (USD 200–400), appliance replacements, bathroom restorations. Cambodia has low labour costs but imported materials (tiles, hardware) can be expensive. AC units are the most maintenance-intensive item in Cambodia's humid tropical climate — budget for annual servicing minimum and full gas recharges every 2–3 years.
What is the true net yield on a Cambodia rental condo after all costs?
Gross yields of 6–8% are frequently quoted for Phnom Penh condos. Net yields — after all costs and realistic vacancy — are considerably lower. For a USD 150,000 BKK1 condo renting at USD 1,000/month with professional management: gross yield is 8%; after 10% withholding tax, 10% property management fee, building management fees (~USD 2,400/year), maintenance reserve (USD 1,500), insurance, and 2 months vacancy per year, net yield drops to approximately 2–3%. Self-managing landlords who are based in Phnom Penh and experience low vacancy can achieve 4–6% net yield. The gap between gross and net yield is significant and should be modelled carefully before purchase.
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Whether you need help with IPT registration, rental income tax compliance, or a complete cost analysis for a property you are considering — our Cambodia property lawyers and tax advisers can help.
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Legal Disclaimer: Tax rates, fee ranges, and cost estimates referenced in this guide are indicative as of March 2026 and subject to change. Electricity rates, management fees, and maintenance costs vary significantly between buildings and are subject to change by building management companies. This guide is for general information only and does not constitute legal, tax, or financial advice. Always conduct independent due diligence and seek advice from a licensed Cambodian lawyer and registered tax agent before making property investment decisions.
Our legal content is developed in partnership with licensed Cambodian attorneys and business consultants who specialise in foreign investment, immigration, and property law.
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