MEF announces stamp duty exemptions and preferential for first-time home buyers for the entire 2025

The royal government of Cambodia announced that stamp duty will be exempted for first-time home buyers whose house prices are less than or equivalent to $210,000 from January 1, 2025, until the end of 2025. The policy aims to reduce the tax burden on homebuyers and promote the development of the real estate industry.

According to a press release issued by the Ministry of Economic and Finance, to facilitate citizens who have purchased housing from residential development companies in the form of Borey or condominiums and to further support the real estate sector, the Ministry of Economy and Finance has informed property owners and the public about the exemption and preferential stamp duty on the transfer of ownership or possession of real estate for first-time home buyers and/or first-time home buyers. This benefit only applies to real estate priced less US$210,000.

For housing prices over $210,000, the excess amount can be deducted from the tax base by $210,000 and taxed at the normal rate. For properties purchased by non-first-time homebuyers, $70,000 can be deducted from the tax base. This preferential policy will last until the end of 2025.

The Ministry of Economic and Finance pointed out that the stamp duty exemption policy was approved by Prime Minister Hun Manet himself and is aimed at reducing the burden on first-time homebuyers and providing support to real estate developers. It is worth noting that this policy does not apply to real estate transactions for which taxes have been paid, including administrative penalty surcharges and interest.

It should be noted that Prime Minister Hun Manet announced an incentives policy in November 2023 to boost the construction and real estate sectors, which are on the way to recovery.

Among them, the government allows foreigners to hold and use land "indirectly" through a registered trust; at the same time, the government also allows the extension of land lease terms from the current 15 to 50 years to a maximum of 100 years.

To address cash flow problems in the real estate sector, the government and the National Bank of Cambodia encourage banks and financial institutions to conduct “case-by-case” reviews and support struggling real estate developers in restructuring their loans.

In addition, the government will delay the effective date of a 20% capital gains tax on real estate until the end of 2025.