Phnom Penh: what to see and whether to move there

What the city lives on and who it suits

Phnom Penh is the capital of Cambodia at the confluence of the Mekong and Tonlé Sap rivers, with about 2.3 million people. The city is growing fast: new residential towers, malls, cafés and offices stand alongside French colonial villas, pagodas and markets. The economy rests on garment manufacturing, construction, trade, banking and tourism, and the US dollar is used in daily life alongside the riel.

Phnom Penh suits entrepreneurs, remote workers and retirees who value low costs, a simple long-term visa and dollar payments, as well as staff of international organisations. It suits less those who need strong healthcare, clean air and calm traffic.

History and the city

In 1975 the Khmer Rouge expelled Phnom Penh's residents to the countryside, and for several years the city stood almost empty. The Tuol Sleng Genocide Museum in a former school prison and the Choeung Ek memorial tell the story of that period. Today it is a young city: more than half of the country's population is under 30, the riverside fills with families in the evenings, and weekends bring street food and music.

Districts

• Boeung Keng Kang - the main expatriate district: cafés, restaurants, coworking spaces and serviced apartments.
• Tonle Bassac - modern residential towers and malls by the river, convenient for families.
• Russian Market area - cafés, bars and cheaper flats, popular with remote workers.
• Toul Kork - a quiet northern residential district with villas and local restaurants.
• Riverside and Daun Penh - the historic centre by the Royal Palace, touristy and noisy.
• Koh Pich island - new condominiums and an exhibition centre, quieter than the centre.

Housing and prices

A one-bedroom flat in Boeung Keng Kang costs $480-900 a month in 2026, and cheaper options exist further from the centre. Rents are almost always quoted in dollars. Local food, markets, tuk-tuks and ride-hailing are very inexpensive, while imported groceries and international schools are expensive. Electricity bills rise noticeably in the hot season because of air conditioning.

Taxes

Salary tax is progressive, from 0% to 20%. Corporate tax is 20% and VAT 10%. Tax residency arises from living in the country for more than 182 days in 12 months or having a principal place of residence in Cambodia.

Practicalities

• Visa. Citizens of Russia and most countries need a visa: a tourist visa is issued electronically or on arrival. For long-term living people get an ordinary visa and extend it as a business visa for up to a year, and work also requires a work permit.
• Airport. In September 2025 the new Techo International Airport opened about 30 kilometres south of the city.
• Healthcare. There are private hospitals and clinics for foreigners; for serious problems people go to Bangkok, so insurance with evacuation is needed.
• Climate. Tropical: hot all year, with April the hottest month and the rainy season from May to October.
• Language. Khmer; English is common in services and business.

Buying property and business

A foreigner cannot own land but can buy a condominium unit above the ground floor if foreign ownership in the building does not exceed 70%. A foreigner can open a company with 100% foreign capital in most sectors, and to hire foreign staff the company obtains a quota and work permits.

Trips

The Angkor temples at Siem Reap are about six hours by car or under an hour by plane. The coast with Kampot and Kep is three to four hours away, and buses run to Ho Chi Minh City in Vietnam in about six hours. Bangkok, Singapore and Kuala Lumpur are one to two hours by air.

Is Phnom Penh worth considering for life

Pros: low costs, dollar payments, a simple renewable business visa, a growing market and new airport, proximity to Thailand and Vietnam. Cons: weak healthcare, heat, chaotic traffic, polluted air in the dry season and petty theft of phones and bags. Phnom Penh works well for an entrepreneur or remote worker on a modest budget. Write in the chat and we will compare Southeast Asian countries for your goals.