Cambodia offers breathtaking landscapes, magnificent temples and an affordable cost of living, making it an attractive destination for retirees. The warm and welcoming nature of the Cambodian people is frequently praised, and the country’s rich cultural heritage and diverse ecosystems add to its appeal. If you’re considering retiring in this vibrant Southeast Asian nation, here’s what you need to know.
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Getting a Cambodian Visa
When you arrive in Cambodia, you can apply for a Cambodian E-class visa at the Phnom Penh, Siem Reap or Sihanoukville airports. You must have the following documentation:
- A passport valid for at least six months
- At least one blank page in your passport
- A passport photo (or you can pay $2 to have one taken at the airport)
This visa is valid for 30 days and costs $35. However, individuals aged 55 and over can apply for an ER visa extension. To qualify, you must provide proof of retirement from the United States and demonstrate sufficient funds to support your stay in Cambodia. Additionally, you must be at least 55 years old and no longer employed. The ER visa extension can be issued for one, three, six or 12 months, with the six- and 12-month options offering multiple entries.
Although the ER visa extension is valid for only one year, it can be renewed annually through a local travel agent. The cost of renewal is $285 per year, and applicants must continue to provide proof of adequate financial resources with each renewal. Your travel agent will manage all the necessary paperwork and typically secure the extension within three days.
Once you obtain a six- or 12-month extension, you can live anywhere in Cambodia and enjoy unlimited entries and exits without the need for additional paperwork. At the end of the visa period, simply visit your travel agent to renew and repeat the extension process.
Housing Costs in Cambodia
The cost of living is significantly lower in Cambodia than in the United States. Consumer prices, including food, utilities, entertainment and other consumer goods, are 34% lower than in the United States. Meaning the overall cost of living, including rent and consumer goods, is also lower.
Rent costs in Cambodia are 77% lower than in the United States, according to Numbeo data. The national average for a one-bedroom apartment in a city center in the United States costs $1,800. In Cambodia, the national average for a one-bedroom apartment in a city center costs $395. Outside of the city center, the same apartments would cost $1,200 and $240, respectively.
Sihanoukville is a popular retirement destination in Cambodia. If you were to rent a one-bedroom apartment in the city center of Sihanoukville, you would pay $400 per month on average. You can compare this to an apartment in the center of New York City where rent for a one-bedroom apartment costs $3,900 on average.
Taxes in Cambodia
In Cambodia, your worldwide salary will be subject to Cambodian Tax on Salary of 20%. And you’ll be considered a resident if you spend more than 182 days per year in Cambodia. If you only receive retirement pensions such as payments from your 401(k) or social security, you’ll continue to pay taxes in the United States.
As a U.S. resident, you’ll be expected to file taxes in the United States each year. You’ll have to report any foreign bank accounts, as well. If you earn any money outside of the U.S., you can use a few different provisions to reduce your U.S. taxable income. These provisions include the foreign earned income exclusion, the foreign tax credit and the foreign housing exclusion, among others. If you’d like to forecast your tax burden more specifically, you may want to consult with a tax expert who is familiar with both U.S. and Cambodian tax laws.
Healthcare in Cambodia
Good health in retirement is essential to enjoying your golden years. The healthcare system in Cambodia is not as efficient or developed as the American healthcare system. It’s strongly recommended for retirees to have health insurance in Cambodia, even if you only plan to spend a few months a year there. There are several private health insurance companies in Cambodia that retirees can purchase from.
The private medical facilities are better developed and more expensive. Major cities have plenty of pharmacies that cater to westerners so that they can get the same medications as at home. Additionally, there are plenty of medical specialists in the larger cities. Nevertheless, many expatriates living in Cambodia travel to Thailand, Vietnam, China or Singapore for surgeries and other treatments.
Safety in Cambodia
Americans in Cambodia typically note that the biggest threat to personal safety is the possibility of endemic disease from mosquito-borne illnesses such as Dengue fever. It’s recommended that individuals get vaccinations before visiting, including tetanus, Hepatitis A and B, and Pertussis. Speak with a health care professional before choosing which vaccinations you should receive.
Cambodians are known for their hospitality, but that is not to say that it’s a place without crime against foreigners. Be aware of your surroundings while in public areas, just as you would in other parts of the world. Theft is relatively common in big cities.
Bottom Line
Cambodia offers a low cost of living. While the lack of medical infrastructure might be off-putting for some, it can be compensated for by visa laws that allow long-term visitors and retirees to travel freely between Cambodia and other countries. Cambodia’s weather is as warm as its residents, making Cambodia an attractive place to retire.
Tips for Achieving Your Retirement Goals
- A financial advisor can help you plan for an overseas retirement. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool can match you with up to three local financial advisors, and you can choose the one who is best for you. If you’re ready, get started now.
- It’s tough to plan for your retirement if you aren’t sure what kind of costs you’ll have when you retire. To get an idea of what to expect, stop by our retirement calculator. To use this, you’ll need a few details about where you want to retire, when you want to retire and how much you have in savings.
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