Retiring in Cambodia as a US Citizen
Cambodia's low cost of living and dollarized economy have made it a modest but genuine retirement destination, formalized through the Ordinary Visa's ER (retirement) extension. Retirement planning here means reconciling US Social Security and retirement accounts with Cambodia's residency rules and understanding what the ER visa actually requires.
The ER Retirement Visa Extension
The retirement extension of the Ordinary (E-class) Visa is available only to foreigners aged 55 and older who can demonstrate they're retired in their home country and can financially support themselves. It's issued in relatively short increments, 1, 3, 6, or 12 months at a time, meaning retirees renew more frequently than under a multi-year visa program like the Philippines' SRRV or Malaysia's MM2H.
Social Security Continues, No Reduction
US Social Security benefits continue to be paid to citizens living in Cambodia without reductions applied under some countries' agreements. Since there's no tax treaty at all, this isn't treaty-driven, Cambodia simply isn't on the short list of countries where the Social Security Administration restricts payments.
IRA and 401(k) Withdrawals
Traditional IRA and 401(k) distributions remain taxable as ordinary US income regardless of Cambodian residence, and Required Minimum Distributions still apply on the standard US schedule. If you're a Cambodian tax resident (182+ days present, or principal abode there), these distributions may also be assessable under Cambodia's worldwide taxation approach for residents, though given retirees' typically lower income levels relative to Cambodia's brackets, actual local tax exposure is often modest.
Medicare Doesn't Follow You Abroad
US Medicare generally does not cover care received in Cambodia. Healthcare infrastructure varies considerably, private facilities in Phnom Penh are reasonable for routine care, but many long-term expats and retirees plan for medical evacuation insurance or travel to Bangkok or elsewhere in the region for more serious procedures, a real budget line to plan for.
Worked Example: An ER Visa Retiree
A 62-year-old American retiree in Phnom Penh maintains an ER retirement visa extension, renewed every six months, and receives $28,000 in Social Security and $14,000 in IRA distributions annually. Both are reportable on his US Form 1040 as usual, RMDs continue on schedule, and given his modest total income relative to Cambodia's tax brackets, his advisor confirms his local tax exposure (if he's a Cambodian tax resident) remains minimal even before considering any Foreign Tax Credit.
