Do I need to pay taxes in Cambodia as a digital nomad?

In practice, most digital nomads earning from foreign companies with no Cambodian entity do not pay Cambodian taxes. Cambodia taxes residents on worldwide employment income, but enforcement for remote workers paid by overseas companies is minimal. If you set up a Cambodian company or are locally employed, salary tax applies. Consult a tax advisor for your specific situation.

Can I open a bank account as an expat?

Yes, easily. ABA Bank is the top choice — bring your passport and EB visa, make a small deposit ($10–$50), and you will have a USD account with an excellent mobile app within an hour. Canadia Bank and Acleda Bank are also expat-friendly. No proof of address or utility bills required at most banks.

Is it true that Cambodia uses US dollars?

Yes. The US dollar is the primary currency for everyday transactions in Cambodia. Rent, restaurants, salaries, supermarkets, and ATMs all operate in USD. The Cambodian riel (KHR) is used only for amounts under $1 and as small change. This is a major advantage for expats earning in dollars — no exchange rate risk.

Are there any taxes on foreign income?

Non-residents (less than 182 days in Cambodia) are taxed only on Cambodia-sourced income. Tax residents (182+ days) are technically liable for worldwide employment income at progressive rates up to 20%, but enforcement on foreign-sourced income from entities with no Cambodian presence is extremely limited. Cambodia has no capital gains tax, inheritance tax, or wealth tax.

What is the best way to send money to Cambodia?

Wise (formerly TransferWise) is the cheapest and most popular option, offering mid-market exchange rates and low fees ($5–$15 per transfer). ABA Bank accepts incoming SWIFT transfers in USD. Remitly and Western Union are alternatives for smaller amounts. Avoid exchanging large amounts at airport counters or unofficial money changers.

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🇰🇭 Cambodia

Cost of Living

USD

Primary Currency

KHR riel for small change only

0–20%

Salary Tax (Resident)

Progressive; on Cambodia-sourced income

Flat 20%

Non-Resident Tax

On Cambodia-sourced income only

$1–$5 fee

ATM Withdrawal

Dispensing USD; daily limit $500–$1,000

None

Capital Gains Tax

Currently no CGT in Cambodia

10%

VAT

Applied to goods and services

Last updated: March 2026

Overview🏙️Phnom Penh 🏛️Siem Reap 🌿Kampot

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Overview

Cambodia's financial environment is uniquely expat-friendly thanks to its dollar-based economy. The US dollar is the de facto currency for all major transactions — rent, salaries, restaurants, and even ATMs dispense USD. The Cambodian riel (KHR) is used only for small change (1 USD = ~4,100 KHR). Banking is straightforward with several international-friendly banks, and Cambodia has no tax on most foreign-sourced income for non-residents. There is no capital gains tax, no inheritance tax, and no foreign exchange controls.

Key Takeaways

USD is used for rent, restaurant bills, supermarkets, salaries, and most transactions above $1
Popular expat-friendly banks: ABA Bank, Canadia Bank, Acleda Bank, and Wing (mobile money)
Resident tax status: anyone present in Cambodia for 182+ days per year is considered a tax resident
Keep most savings in your home-country bank — Cambodian banks offer high USD deposit rates (4–7%) but deposit insurance is limited

The Dollar Economy: Cambodia's Unique Advantage

Cambodia is one of the few countries in the world where the US dollar circulates as the primary currency alongside the local riel.

USD is used for rent, restaurant bills, supermarkets, salaries, and most transactions above $1
Cambodian riel (KHR) is used only for amounts under $1 and as change — 1 USD = ~4,100 KHR
ATMs dispense US dollars; most give $1–$5 ATM fees per withdrawal with $500–$1,000 daily limits
No need to exchange currency when arriving — USD cash is accepted everywhere in cities
Carry small USD bills ($1, $5, $10) — change for large bills can be difficult at small shops
Some rural areas and markets prefer riel, but USD is universally accepted in all urban areas

Banking & Money Transfers

Opening a bank account in Cambodia is relatively simple for expats, and the banking sector has modernized rapidly with mobile banking and digital payments.

Popular expat-friendly banks: ABA Bank, Canadia Bank, Acleda Bank, and Wing (mobile money)
ABA Bank is the top choice for expats — excellent mobile app, USD accounts, free local transfers, and easy account opening
Requirements: passport, visa (EB or equivalent), and a small minimum deposit ($10–$50)
ABA mobile banking allows instant transfers, bill payments, QR payments, and international SWIFT transfers
Wing and TrueMoney provide mobile money services — useful for paying utility bills and local purchases
International transfers via Wise (TransferWise), Remitly, or bank SWIFT transfers; Wise is the cheapest option

Tax System for Expats

Cambodia's tax system is relatively simple and favorable for many expats, particularly those earning income from abroad.

Resident tax status: anyone present in Cambodia for 182+ days per year is considered a tax resident
Residents pay progressive salary tax on worldwide employment income: 0% up to $200/mo, 5% on $200–$513, 10% on $513–$1,025, 15% on $1,025–$1,538, and 20% above $1,538
Non-residents pay a flat 20% tax on Cambodia-sourced income only — foreign income is not taxed
Digital nomads earning from foreign companies with no Cambodian entity effectively pay no Cambodian tax (enforcement is minimal)
No capital gains tax, no inheritance tax, and no wealth tax — Cambodia is very favorable for asset holders
Self-employed expats with a Cambodian business pay 20% corporate tax plus salary tax on drawings

Managing Your Finances in Cambodia

Practical tips for managing money effectively as an expat in Cambodia.

Keep most savings in your home-country bank — Cambodian banks offer high USD deposit rates (4–7%) but deposit insurance is limited
Use Wise or Remitly for international transfers — much cheaper than bank SWIFT transfers ($5–$15 vs $25–$50)
Carry USD cash for daily transactions — while digital payments are growing, cash is still king in many situations
Reject torn, stained, or marked USD bills — Cambodians are extremely particular about bill condition
Budget for electricity costs separately — Cambodia has some of the highest electricity rates in Southeast Asia ($0.15–$0.25/kWh)
Negotiate rent in cash for discounts of 5–10%; landlords prefer direct USD cash payments

Disclaimer: The information on this page is for general informational purposes only and does not constitute financial, tax, legal, or investment advice. Tax rates, regulations, and investment rules change frequently. Always verify data with official sources and consult qualified professionals before making decisions. Read full disclaimer

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