Published on and written by Cyril Jarnias
Long perceived as a haven for budget-conscious backpackers, Cambodia is now one of the most affordable countries in the world for medium or long-term relocation. Whether you’re a retiree, a remote worker, a recent graduate seeking experience, or a family moving abroad, the same conclusion emerges in testimonials: you live significantly better on the same income than in Europe or North America, albeit with some compromises on comfort, services, and infrastructure.
This article details, item by item and with recent data, the expenses to anticipate for building a realistic budget before moving to Cambodia.
A very inexpensive country… but with trade-offs
Cambodia is regularly cited among the cheapest destinations for expatriates. According to several international comparisons, the cost of living is about 50% lower than in the United States, and nearly 22% lower than in the United Kingdom. Rents are, on average, more than 75% lower than those in the United States. Phnom Penh remains one of the most accessible capitals in Asia, while modernizing rapidly.
The minimum monthly budget for a simple life in rural Cambodia.
The flip side? Uneven infrastructure (power outages, poor roads outside main arteries), a public health system inadequate by Western standards, little public transportation, limited leisure and shopping options outside major cities, and a certain “small town” feeling that tires some expatriates in the long run. Cambodia clearly offers “freedom from financial stress,” but not necessarily the same level of comfort or services as Thailand or Vietnam.
Understanding typical expatriate budgets
To get a concrete idea, it’s useful to think in terms of budget ranges according to lifestyle. Several studies and testimonials point to three profiles:
| Expatriate Profile | Approximate Monthly Budget | Lifestyle Description |
|---|---|---|
| Very budget / long-term backpacker | $500 – $720 | Simple room, street food, few outings, travel by tuk-tuk or scooter |
| Comfortable “middle class” | $900 – $1,300 in Phnom Penh | Decent apartment, mix of local and Western food, regular leisure activities |
| Comfort + family / high-end | $1,500 – $3,000+ | Desirable neighborhood, international restaurants, frequent travel, international schools |
A typical example often cited for a single person in Phnom Penh is around $1,150, covering rent, utilities, food, transportation, and leisure. For a household of four, some estimates put monthly expenses around 11 million riels, nearly $2,700, including an “expat” level of comfort and schooling.
Budget amounts are indicative. The gap is huge between a local lifestyle and a consumption of imported products, wine, fancy restaurants, and frequent travel. Your own habits determine your budget much more than the country itself.
Currency, payments, and the reality of dual‑currency
Another peculiarity to factor into your budget: Cambodia operates with two currencies in parallel, the US dollar (USD) and the Cambodian riel (KHR). In practice, major expenses (rent, certain services, Western restaurants) are often paid in dollars, while small daily purchases (tuk-tuk, market, snacks) are done in riels.
The exchange rate is around 4,000 riels to 1 dollar, giving for example:
| Amount in KHR | Approximate Equivalent in USD |
|---|---|
| 10,000 KHR | $2.5 |
| 100,000 KHR | $25 |
| 1,000,000 KHR | $250 |
The government is gradually encouraging “de‑dollarization,” pushing for the use of riels for small transactions. In reality, expatriates juggle two currencies daily. It is useful to open an account with a local bank – ABA Bank is frequently mentioned – to avoid withdrawal fees ($4 to $8 per transaction on a foreign card). Services like Wise or Revolut can also help limit exchange costs.
Income from foreign sources, such as retirement pensions or salaries paid from abroad, is generally not taxed in Cambodia. This advantageous tax provision significantly contributes to the country’s financial appeal for retirees and digital nomads.
Housing: Cambodia’s major asset
The housing category is by far the element that allows the cost of living to plummet. Rents can seem ridiculously low for a European or North American, even for properties with a pool, security, and gym.
Phnom Penh: from simple studio to luxury condo
Phnom Penh, the capital and economic heart of the country, concentrates the widest choice of housing, from small local studios to high‑end residences. The following average rents give a rough idea:
| Type of Housing in Phnom Penh | Monthly Rent Range in $ (furnished) |
|---|---|
| Studio (expat areas) | $200 – $400 |
| 1 bedroom “standard” | $300 – $600 |
| 1 bedroom premium area (BKK1, Riverside) | $450 – $800 |
| 2 bedrooms | $500 – $900 |
| Simple local‑flat (Toul Kork, Russian Market) | $150 – $300 / $250 – $500 |
| Serviced apartment / luxury condo | $1,100 – $1,600+ |
| Villa / upscale house | $1,000 – $2,000+ |
The neighborhoods most favored by expatriates are BKK1 (Boeung Keng Kang 1), very central and upscale, Daun Penh/Riverside for the Mekong view and liveliness, and Toul Tom Poung (Russian Market), more bohemian and affordable. Toul Kork and some more remote areas are gaining ground, with softer rents.
In Phnom Penh, it’s common to negotiate the price of a rental, often down by 10 to 20% from the listed price. Security deposits are generally one or two months’ rent, and leases are most often for one year. Properties are typically furnished and equipped with air conditioning.
Siem Reap, Kampot, coastal areas: quieter, cheaper
Secondary cities offer even lower rents, at the cost of a quieter life and a more limited choice of services. Siem Reap, gateway to Angkor, Kampot on the river, or coastal areas like Kep are popular with retirees and remote workers seeking tranquility.
These sectors, without aiming for the low-end, are frequently represented in the economic landscape.
Includes repair trades, renovation, and small essential shops for daily life.
Includes cafes, restaurants, and mid-sized tourist accommodations focused on customer experience.
Includes consulting, administrative support, accounting, and IT services for SMEs.
Independent stores offering niche products, from food to cultural goods.
| City / region | Type of housing | Typical monthly rent |
|---|---|---|
| Siem Reap | Studio | $150 – $300 |
| 1 bedroom | $200 – $500 | |
| House / villa | $300 – $800 | |
| Kampot / Kep | Studio or 1 bedroom | $100 – $300 (often ~$200) |
| Villa with garden | $200 – $500 | |
| Coastal areas | Seaside property | $300 – $600 |
| Sihanoukville | Basic studio | $200 – $350 |
| Mid‑range 1 bedroom | $350 – $600 | |
| High‑end condo | $600 – $1,200 |
In rural areas, you can find simple houses for as little as $100 to $300 per month. The comfort level is lower (rustic furniture, sometimes no hot water), but some expatriates choose this type of life to drastically reduce their expenses.
Purchase, ownership, and constraints
For those considering buying, entry‑level condos start around $50,000, with purchase costs per square meter in central Phnom Penh between approximately $2,200 and $2,300. Foreigners, however, cannot own land in their own name; they therefore turn to strata‑title units or more complex legal arrangements.
Mortgage rates remain high, between 8 and 11% over 20 years, which pushes many expats to rent rather than buy.
Utilities and bills: electricity makes the difference
On paper, utilities in Cambodia are very reasonable. In practice, the electricity bill can quickly climb for those who leave the air conditioning running all day.
Electricity is officially billed at around $0.15 to $0.17 per kWh, but many landlords re‑bill at $0.25–$0.35/kWh. As a result, expenses vary greatly:
| Air conditioning usage | Typical monthly electricity bill |
|---|---|
| Fans, little AC | $30 – $50 |
| Moderate AC (evening and night) | $50 – $100 |
| Intense AC (day + night) | $100 – $150+ |
Running water, on the other hand, costs very little. A single expatriate often spends between $5 and $10 per month, sometimes less, and many landlords include this in the rent. Garbage collection runs around $2 to $5.
Fixed internet is very affordable ($15‑30/month for 50 Mbps+). Although many buildings offer basic Wi‑Fi, remote workers are advised to subscribe to a personal line for a more stable connection.
In summary, apart from electricity, utility costs remain low. For a single person in an apartment of about 900 sq ft, combined monthly expenses for electricity, water, internet, and garbage often range between $50 and $100. For a family, it’s more like $100 to $150.
Food: ultra‑economical if you eat local
Dining out is one of the great pleasures of life in Cambodia, and also one of the most adjustable budget items. Between a noodle soup for $1.50 on the street corner and a tasting menu with wine pairing for over $100, the range is wide.
Eating out: from street‑food to gourmet tables
An expatriate who mostly sticks to local cuisine and street‑food can eat for $5 to $10 per day. A simple dish in a local eatery or Khmer canteen (rice + meat, curry, noodle soup) generally costs between $1.50 and $3. In a small “sit‑down” local restaurant, the bill often ranges from $3 to $6 per person.
Western restaurants and “hipster” cafes charge prices much closer to Europe: a burger or pizza easily costs $6 to $8, a dish in a Western‑style bistro runs between $8 and $15. Gourmet and upscale establishments charge more like $25 to $60 per person, excluding wine.
The minimum monthly food budget for a single person who cooks mainly at home by shopping at the market.
Groceries: local very cheap, imported explosive
Local markets provide fruit, vegetables, rice, and meat at unbeatable prices compared to the West. You can find:
– Rice for between approximately $0.60 and $1 per kilo
– Various vegetables around $0.50 to $2 per kilo
– Tropical fruits (bananas, papayas, mangoes, watermelons) often between $0.50 and $3 per kilo
– Local meats much cheaper than imported cuts: a whole poultry or pieces of pork remain economical
Conversely, Westernized supermarkets (Lucky, Thai Huot, Anchor Market, etc.) align much higher prices on imported products: cheese, butter, milk, brand‑name cereals, sauces, wine, European frozen foods, etc. Comparisons with Australia or the United Kingdom sometimes show spectacular gaps: some cheese brands can cost three times more than in a Western supermarket, as can sunscreen or brand‑name snacks.
Price comparison in Westernized supermarkets in Cambodia
A typical grocery budget for a single person, mixing local market and supermarket, is between $100 and $300 per month depending on the share of imported products. A family that indulges in Western products can quickly exceed $400 or $500 in monthly groceries.
Drinks: beer practically given away, coffee variable
Drinks also illustrate the wide price gap:
– A draft local beer often costs between $0.50 and $1 in a simple bar, a bit more in a trendy bar.
– An imported beer in a bar is priced more around $4.
– A cappuccino in an international chain or expat cafe costs $2.50 to $3, while an iced coffee in a Khmer stall doesn’t exceed $0.75.
– A decent bottle of wine starts around $10 to $15 in a store, and wine lists in restaurants climb quickly.
For big consumers of wine, cheese, or imported beer, this is a real budget item to watch.
Getting around: tuk‑tuks, scooters, and long‑distance buses
Urban transport in Cambodia relies almost entirely on tuk‑tuks, motorcycles, and, to a lesser extent, a few bus lines in Phnom Penh. There is no subway or tram network.
In the city, a tuk‑tuk ride via local apps (Grab, PassApp) often costs between $1 and $3 for short distances, $4 to $5 to cross town. Tuk‑tuks without apps, paid per ride, sometimes ask more from foreigners; using the apps significantly limits the risk of overcharging.
Many expatriates rent or buy a scooter. A monthly rental generally varies between $50 and $100, with a fuel budget of about $10 to $15 per month for daily urban use. Buying a used motorcycle costs, depending on the model, between $500 and $1,500.
For intercity travel, private company buses connect major cities for $3 to $15 per trip depending on distance: Phnom Penh – Siem Reap, for example, is around $10 to $15. Private taxis, faster and more comfortable, run more around $40 to $85 to connect two major cities.
Finally, domestic flights exist but remain relatively expensive compared to the local standard of living, with one‑way tickets often between $40 and $100.
Overall, an expatriate who gets around mainly by tuk‑tuk and bus can manage with $40 to $60 per month for transport. With a scooter, you generally stay under $80 to $100 (rental + fuel).
Visas, work permits, and resident status: a cost to factor in
One of Cambodia’s major advantages compared to other countries in the region is the relative simplicity – and moderate cost – of its long‑stay visas.
The ordinary Type E visa, often called a “business visa,” is the entry point for those wanting to stay more than a month and potentially work. On arrival, it costs about $35 for 30 days. It can then be extended for periods of 6 or 12 months through “Extensions of Stay” (EOS). Long‑term extensions most often go through specialized agencies, which charge for their services.
A ballpark figure for a 12‑month extension is around $280 to $300 all‑inclusive via an agent. Sometimes lower official rates are found, but intermediation greatly simplifies the procedure.
This is the monthly amount in dollars that retirees over 55 must demonstrate to obtain an ER visa in Thailand.
People who work on site must additionally obtain a work permit. Again, several ranges are mentioned, but an annual budget around $100 to $200 is realistic. In recent years, authorities have tightened checks, especially for teachers and company employees.
In practice, a regular expatriate should therefore anticipate each year:
– A long‑term visa extension around $280–$300
– A work permit around $100–$200 if they engage in paid activity in Cambodia
That is, to simplify, $400 to $500 per year to include in the budget.
Health and insurance: a critical area not to be overlooked
This is probably the area where the savings made on the cost of living should not translate into reckless risk‑taking. Cambodia’s public health system remains below Western standards: under‑equipped hospitals, overwhelmed staff, lack of specialists, especially outside Phnom Penh and Siem Reap. The vast majority of expatriates therefore turn to private clinics and hospitals.
The cost of one night in a private international clinic meeting Western standards can exceed $650, excluding exams and treatments.
Dental care, on the other hand, is significantly cheaper than in North America or Western Europe, with prices 40 to 70% lower depending on the procedure.
In case of serious illness or major trauma, many expatriates are evacuated to Bangkok or Singapore, where the reference technical facilities for Southeast Asia are located. A medical evacuation by plane can cost $10,000 to $20,000, or more. Hence the almost unanimous insistence: an international health insurance with evacuation coverage is essential.
For a healthy adult, comprehensive international insurance (hospitalization, routine care, evacuation) generally costs between $50 and $200 per month. The price varies with age and coverage. Insurers like Cigna, Allianz, IMG, or SafetyWing are common references. A cheaper alternative exists with local insurers, but they offer lower compensation ceilings and limited coverage outside the expatriation country.
Concretely, it is prudent to budget at minimum:
– $50 to $150 per month in insurance premiums, depending on profile
– A savings reserve for deductibles, uncovered costs, and small routine care
Health is the area where trying to save money at all costs can ruin, in a single hospitalization, all the country’s financial advantage.
Leisure, sports, and daily life: many small prices
In terms of leisure, Cambodia remains very affordable, at least as long as you don’t multiply ultra‑trendy outings. A gym membership costs on average between $30 and $100 per month depending on the standard. A traditional massage in a local salon costs between $5 and $10 per hour, compared to $20 to $30 in a high‑end spa.
This is the price in dollars of a one‑day pass to visit the Angkor complex, a notable exception to the generally very low cultural prices.
For daily services, prices remain on a scale that would make many Westerners dream: a simple haircut around $5 to $10, a kilo of laundry washed and ironed often charged $1 to $2, a cleaner for a few hours per week for $30 to $40.
By combining a few subscriptions (gym, Netflix or equivalent, movie outings, occasional massages), an active expatriate often spends between $100 and $200 per month on leisure and services. Beyond that, it’s mainly nightlife, high‑end restaurants, and frequent travel that inflate the bill.
Schooling: the real major expense for families
For expatriate families, the variable that changes everything is schooling. The local public school is not suitable for the majority of foreign families, who turn to international or bilingual schools. And there, the fees have nothing to do with the surrounding cost of living.
Depending on the institutions, annual fees range very roughly between $3,000 and over $25,000 per child per year, with a very disparate panorama:
| Level / type of international school (Phnom Penh & Siem Reap) | Approximate annual fee range |
|---|---|
| Preschool / “Internationalized” kindergarten | $3,000 – $10,000 |
| International primary (UK curriculum, IB, Canadian…) | $5,000 – $15,000 |
| Secondary / high‑level international high school | $8,000 – $25,000 |
In Phnom Penh, establishments like International School of Phnom Penh (ISPP), Northbridge, or some Australian or Canadian schools display fees that can reach or exceed $30,000 annually for the last years of secondary school. Other good‑level schools remain in the $6,000–$15,000 range.
In addition to tuition fees, you often need to account for:
– Registration or “capital fees” of $500 to $3,000 upon arrival
– Material and uniform fees ($300 to $800 per year)
– School meals, often billed at $3 to $5 per day
– Variable school trips and extracurricular activities
For a family with two children in good international schools, schooling quickly becomes the number one budget item, far ahead of housing and food, with a total cost that can exceed $20,000 or even $30,000 per year. Conversely, more modest bilingual schools, or hybrid solutions (local school in the morning, English classes in the afternoon), allow significantly reducing the bill, but with compromises on the program and diploma recognition.
Comparison with local and regional salaries
From the outside, the detailed budgets above seem low. From within Cambodia, they are high. The average local net salary is around $325 to $350 per month, and the median post‑tax salary is sometimes estimated around $210. A minimum wage of about $200 has been set for certain sectors.
In parallel, typical salaries for qualified expatriates are much higher:
Overview of monthly salary ranges for different foreign professional profiles working in Cambodia.
Between $800 and $1,500 per month, with higher compensation in top‑tier international schools.
Salary range from $1,500 to over $4,500 per month.
Salaries between $1,200 and over $3,000 per month for international organizations and NGOs.
Compensation frequently beyond $2,000, reaching $5,000 and more.
In other words, a monthly income of $1,500 to $2,000 not only allows you to live comfortably but also to build significant savings capacity, especially if you don’t have children in international school.
Compared to other regional hubs, Cambodia retains a net price advantage: a “comfortable expat” lifestyle will admittedly cost a bit more in Phnom Penh than in Ho Chi Minh City according to some sources, but remains significantly less expensive than in Bangkok or Bali, especially on rents.
Managing your budget intelligently in Cambodia
Living in Cambodia at a lower cost while maintaining a good level of comfort relies on a few simple trade‑offs.
Regarding housing, accepting to live outside the most sought‑after neighborhoods (like the heart of BKK1) can reduce the bill by 20 to 40%. In secondary cities, rent “modernized local” houses or apartments rather than condos developed for the Chinese or Korean market, which are often oversized for an individual and more costly in utilities.
To effectively reduce your utility bills, monitor your air conditioning usage. Set the temperature between 25 and 26 °C (77‑79 °F) rather than 20‑21 °C (68‑70 °F), use fans to improve comfort, and close curtains during the hottest hours to limit heating. Also, comparing electricity rates before signing a lease can save you several tens of dollars per month.
Regarding food, favoring local markets for fruit, vegetables, and meat, and reserving supermarkets for the few “essential” Western products drastically lowers the bill. Similarly, cooking at home a few meals per week while enjoying street‑food and small restaurants allows you to play both sides: pleasure and savings.
In major cities, combining occasional trips by tuk‑tuk via app and regular travel by scooter is often the most economical and efficient option. It is crucial to always wear a good helmet and adopt defensive driving in sometimes chaotic traffic.
Regarding health, saving on insurance premiums is generally not recommended: this is an area where “cheap” today can cost extremely dearly tomorrow. It’s better to spend $50 to $100 per month on serious coverage than risk having to fund a complex hospitalization or evacuation yourself.
Finally, regarding schooling, families must decide early on between several models: high‑end international school, more accessible bilingual school, or hybrid solutions (distance learning, homeschooling combined with local structures). This choice will have a much stronger impact on the overall budget than the housing address or restaurant frequency.
A simple, affordable, and rapidly changing living environment
Beyond the numbers, Cambodia offers a rather particular lifestyle compared to its neighbors: a slow pace, an atmosphere often described as peaceful, a relatively small but close‑knit expatriate community, and the possibility, for modest pensions or average salaries, to live without the financial pressure of a major Western urban center.
Public services are limited and the health system may require evacuation for serious cases. Infrastructure is incomplete, and leisure and shopping options are less varied than in Bangkok or Saigon. Many long‑term residents mention a routine and lack of stimulation after a few years, unlike the bustling environment of major metropolises.
But for those seeking a very low cost of living, a tropical climate, a generally welcoming population, and a practical base to explore Southeast Asia, Cambodia remains a leading option. With a minimum of budgetary preparation, by mastering the key expenses – housing, health, schooling – and accepting a few comfort compromises, it is perfectly possible to live better, with less money, than in most major Western cities.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
