Phnom Penh, Cambodia – Prime Minister Hun Manet has announced a significant policy change aimed at simplifying land ownership transfers across Cambodia. Under the new directive, for all land ownership transfers that have occurred multiple times between individual parties from 2017 until the end of July 2026, tax will now only be levied on the final ownership transfer in the sequence of purchase-sale transactions. This decision was officially declared by the Prime Minister during a ceremony for distributing property title certificates to citizens in Kandal province’s Kandal Stueng district on the morning of July 29.
The previous system often presented considerable challenges to citizens involved in multi-stage land transactions. Many land ownership transfers were handled informally at the commune or district level, often lacking comprehensive documentation of the land’s historical transfers from local authorities. This informal process frequently resulted in the final owner being liable for taxes on all preceding transfers, creating an onerous and complex financial burden, and complicating the overall process of buying and selling land.
Addressing these concerns, Prime Minister Hun Manet has approved this special exemption to alleviate the difficulties faced by property owners. He confirmed that land owners will only be required to pay tax on the most recent transfer of ownership for transactions taking place between 2017 and the conclusion of July 2026. The Prime Minister explicitly stated, “Regardless of how many times a piece of land has changed owners after 2017 until the end of July, the tax will only be paid once, on the final transfer, without considering any previous exchanges or sales. This measure is intended to prevent complications arising from reviewing past transactions.”
It is important to note that the land transfer ownership tax, also known as stamp duty, is generally set at a rate of 4 percent of the total property value. This tax typically has specific exemptions, such as for transfers of ownership within immediate family circles, and special allowances for the purchase of housing in borey developments valued under $70,000. This new policy further enhances accessibility and fairness within the property market by simplifying the tax obligations for qualifying land transactions.
