Guatemala: Living There - Tax Issues
Country Rating » 
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Living There
INDIVIDUAL TAXATION
Guatemalan residents are subject to income tax on all their Guatemalan-sourced income. Married couples are taxed separately.
INCOME TAX
Net income earned by residents from non-employment sources are subject to a flat 31% tax. Allowable deductions include income-generating expenses and other taxes paid. Depreciation is determined on a straight line basis.
Rental income earned by residents from immovable properties is subject to a 5% final withholding tax on the gross amount.
Residents earning income from employment are taxed at progressive rates, levied marginally depending on the taxable income.
INCOME TAX |
|
| TAXABLE INCOME, GQT (US$) | MARGINAL TAX RATE |
| Up to 65,000 (US$8,181) | 15% |
| 65,000 - 180,000 (US$22,656) | 20% on band over US$8,181 |
| 180,000 - 295,000 (US$37,130) | 25% on band over US$22,656 |
| Over 295,000 (US$37,130+) | 31% on band over US$37,130 |
| Source: Global Property Guide | |
Residents can deduct allowances from their total income to arrive at their taxable income. Each taxpayer is entitled to a GQT36,000 (US$) personal allowance. Residents are also entitled to expense allowances for contributions to the social security system, premiums for life insurance, medical expenses, certain qualifying gifts, alimonies fixed by court decision, and membership fees paid to recognized professional bodies.
CAPITAL GAINS TAX
Residents earning capital gains from selling real estate properties are subject to a flat 10% tax. The taxable gain is computed by deducting the acquisition costs and improvement costs from the selling price.
CORPORATE TAXATION
INCOME TAX
Corporations are generally taxed at 5% on their gross monthly income. No deductions are allowed.
Alternatively, corporations can choose to be taxed under the optional tax regime. Under this regime, they are liable to 31% tax on their net income. Taxable income is computed as gross income less income generating.
Capital Gains
Capital gains realized from selling company assets are considered as income and taxed at standard rates.
PROPERTY TAX
Real Tax or Property Tax (impuesto unico sobre inmuebles)
This tax is collected by the local government (departments, municipalities) as an annual property tax applicable to all real estate in Guatemala. The property taxes are levied on the cadastral value of the property, as determined by the tax authorities.
PROPERTY TAX |
|
| VALUE OF PROPERTY, GTQ (US$) | TAX RATE |
| Up to 2,000,000 (US$260,619) | nil |
| 2,000,000 - 20,000,000 (US$2,606,186) | 0.20% |
| 20,000,000 - 70,000,000 (US$9,121,650) | 0.60% |
| Over 70,000,000 (US$9,121,650) | 0.90% |
| Source: Global Property Guide | |
Guatemala - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
Your Comments
Be the first to comment!