INHERITANCE TAX (impuesto de herencias, legados y donaciones)
Inheritance tax is levied at progressive rates depending on the value of the taxable inheritance and the relationship between the deceased and the heir.
Classification of Heirs or Beneficiaries:
- Category I: spouse, child
- Category II: direct ascendant, grandchild, great-grandchild
- Category III: brother, sister
- Category IV: niece, nephew, uncle, aunt
- Category V: first cousin
- Category VI: in-laws, step relative
- Category VII: others
INHERITANCE TAX |
| TAX BASE, GTQ (US$) |
TAX RATE ON DIFFERENT CATEGORIES |
| |
I |
II |
III |
IV |
V |
VI |
VII |
| Up to 50,000 (US$6,191) |
1% |
2% |
3% |
5% |
7% |
9% |
12 |
| 50,000 - 100,000 (US$12,382) |
2% |
3% |
4% |
6% |
9% |
10% |
14% |
| 100,000 - 200,000 (US$24,763) |
3% |
4% |
5% |
7% |
10% |
11% |
16% |
| 200,000 - 300,000 (US$37,145) |
4% |
5% |
6% |
8% |
11% |
12% |
18% |
| 300,000 - 500,000 (US$61,908) |
5% |
6% |
7% |
9% |
12% |
13% |
20% |
| Over 500,000 (US$61,908) |
6% |
7% |
8% |
10% |
13% |
14% |
25% |
| Source: Global Property Guide |
The taxable inheritance is based on the estate’s market value or officially assessed value less the following:
- The marriage portion of the surviving spouse
- Debts owed by the decedents
- Liens and obligations of the transfer of the property at the time of death (as substantially documented)
- Last illness and funeral expenses
- Professional fees and testamentary expenses
- Compensation received by the heirs on the account of the death
- Up to GTQ1,000 (US$130) paid by savings and special insurance funds
- Amounts received from life insurance funds
- Mandatory alimonies
- Copyright royalties
- Public funds where specifically exempt
- Money deposits with Guatemalan-resident banking and saving institutions
The beneficiary is the one liable to pay the tax on his inheritance. Each Category I and II beneficiary can deduct an allowance of GTQ500 (US$62). For Category I and II recipients who are less than 12 years old, the allowance is GTQ1,000 (US$124). Category III to VII recipients can each deduct an allowance of GTQ300 (US$37).
Guatemala - more data and information
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