The government’s decision to postpone the implementation of capital gains tax on real estate is unlikely to significantly stimulate Cambodia’s property market, but it will help prevent additional burden on buying and selling activities, according to a real estate expert.
The Ministry of Economy and Finance announced that the tax will now take effect from January 2027, delaying its implementation by another year.
A notification issued by the General Department of Taxation on January 2 confirmed that the postponement was made in accordance with an approval note from Prime Minister Hun Manet dated December 24, 2025 referencing Letter No. 12792 MEF from the finance ministry.
The notice stated, “Capital gains tax derived from the sale or transfer of real estate shall apply to capital gains arising from January 1, 2027 onward.”
It further clarified that the tax on the sale or transfer of leases, investment assets, businesses, intellectual property and foreign currency will still come into effect from January 1, 2026.
Previously, the government had delayed the tax’s implementation until the end of 2025, citing weak global economic conditions and armed border tensions caused by Thai military activity.
Sam Soknoeun, CEO of Sam SN Group, told The Post on January 5 that although Cambodia has laws in place for the collection of capital gains tax on real estate, they have never previously been implemented. He said the latest postponement reflects the government’s consideration of the continued challenges facing the sector since the Covid-19 pandemic, as well as the impact of ongoing tensions along the Cambodian-Thai border.
He noted that once the tax is enforced, property prices are likely to rise, discouraging transactions.
“In order to avoid placing additional strain on Cambodia’s real estate sector, the government has decided to postpone the implementation of the [tax]. This postponement reflects the government’s intention not to add further pressure to the sector,” he said.
Asked whether the delay would significantly boost market activity, he responded, “The answer is no. It simply avoids adding further burden on buyers and sellers.”
