Economy Guide in Cambodia

Cambodia offers a very affordable cost of living, with a Cost of Living Index (CPI) of 33.8 compared to NYC. Groceries (40.9) and restaurant prices (25.1) are notably low.

The housing market is very expensive, with property prices averaging 36.1 years of household income. However, the rent index is significantly lower at 9.1, indicating a more affordable rental market.

The purchasing power index of 25.4 indicates a low buying power compared to the NYC baseline.

Cambodia has a progressive income tax system for residents (0-20%), with non-residents facing a flat 20% rate on Cambodian-sourced income. The standard VAT rate is 10%. Property tax is 0.1% on values exceeding approximately US$24,570. A 20% capital gains tax was implemented for non-real estate assets in September 2025, with real estate gains to follow in January 2026, though some property tax incentives and exemptions are extended until late 2025 or 2026.

Cambodia was ranked 144 out of 190 economies in the World Bank's Ease of Doing Business 2019 report. Foreign investors cite high energy costs, lack of transparency, and governance issues as significant obstacles. However, the startup ecosystem is growing, ranked 105th globally in 2025, with government programs supporting its development, though challenges in capital access and talent persist.

Cambodia has a comprehensive social security system, including healthcare, occupational risk coverage, and a pension scheme launched in 2022. Healthcare provides extensive medical protection for registered workers and their dependents. The pension system offers old-age, disability, and survivor benefits, requiring NSSF registration and contributions. Unemployment benefits are not yet available, but severance and lay-off compensation exist. The system aims for universal coverage by 2025.

Cambodia is in the process of establishing a deposit insurance system, with a new draft finalizing fund policies and dispute resolution mechanisms. As of early 2024, it was one of the few ASEAN+3 countries without an explicit scheme. The National Bank of Cambodia is strengthening financial stability, and the country was removed from the FATF grey list in February 2023. However, concerns about rising non-performing loans persist, and while some Basel III recommendations are being adopted, full implementation is not immediate.