Phnom Penh, Cambodia’s capital, has become a popular destination for expats, entrepreneurs, and retirees looking for an affordable yet dynamic city to call home. With a growing economy, a mix of modern conveniences and traditional culture, and a relatively simple visa process, it’s an appealing place to settle. However, there are some unique challenges to keep in mind when making the move.
Visa & Legal Requirements
One of the biggest draws for expats is the ease of obtaining long-term visas. Cambodia offers an Ordinary (E) Visa, which can be extended for business, retirement, or freelance work. Many expats opt for the EB Visa Extension, which allows them to stay for up to a year at a time. I’ve covered Cambodia Visa Requirements here.
Cost of Living & Housing
Phnom Penh is affordable, but prices vary based on location and lifestyle. Popular areas include:
- BKK1: A central district popular with expats, featuring cafes, bars, and Western amenities.
- Toul Tom Pong (Russian Market): A quieter, more affordable neighborhood with a mix of locals and expats.
- Riverside: Close to nightlife and entertainment, but noisy and touristy.
Rentals can be found on platforms like Realestate.com.kh and Rentex Cambodia.
Money Matters: Dollars & Riel
Cambodia operates on a dual-currency system where both the US Dollar (USD) and Cambodian Riel (KHR) are accepted. However, locals are extremely particular about USD notes—they must be crisp, clean, and undamaged. Bills with even the slightest tear or marking will likely be refused.
This can be problematic since ATMs sometimes dispense worn bills, and banks often won’t exchange them. To avoid issues, withdraw smaller amounts and inspect notes before accepting them. Major banks like ABA Bank and Acleda Bank offer reliable banking services for expats. See more about the Cambodian Dual-Currency System.
Transportation & Getting Around
Phnom Penh’s public transport system is limited, so most expats rely on:
- Tuk-tuks & Motodops: Widely available and affordable. Use ride-hailing apps like PassApp or Grab.
- Motorbike Rentals: Many expats rent or buy motorbikes for convenience, but traffic can be chaotic.
Healthcare & Insurance
Cambodia’s healthcare system has improved, but for serious conditions, expats often travel to Thailand. Private hospitals in Phnom Penh offer good care, with facilities like:
- Royal Phnom Penh Hospital (www.royalphnompenhhospital.com)
- S.O.S. International Clinic (www.internationalsos.com)
Expats should have international health insurance, with providers like Pacific Cross offering good coverage. I’ve covered the Cambodian Health System here.
Work & Business Opportunities
Many expats work in education, NGOs, or start businesses. Coworking spaces like The Desk and Workspace 1 cater to freelancers and entrepreneurs.
Cultural Etiquette & Daily Life
Phnom Penh blends modernity with tradition. To integrate smoothly:
- Learn basic Khmer phrases.
- Dress modestly when visiting temples.
- Avoid public displays of frustration, as maintaining “face” is important.
Final Thoughts
Phnom Penh offers a mix of opportunity and cultural richness, but understanding the nuances of currency, transportation, and daily life is essential for a smooth transition.
Don’t forget to look at my list of Southeast Asia-focused expat travel gear before you hit the road!