Guatemala: Taxes and Costs
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Taxes are very high at 31%
INDIVIDUAL TAXATION
Non-residents are taxed on their Guatemalan-sourced income. Married couples are taxed separately.
INCOME TAX
Income earned by non-residents is taxed at a flat rate of 31%.
Non-residents can avail of the following personal deductions:
- a total of GTQ36,000 (US$4,457) a year without need to prove anything
- quotas paid to Bar Associations, bond premiums, social security contribution
- alimony established by a Family Court
- donations not larger than GTQ 500,000 (US$61,908)
RENTAL INCOME
Rental income earned by non-residents is taxed at 31%. Taxable income is computed by deducting income-generating expenses from the gross rent. The deductions must be supported by corresponding legal documentation.
CAPITAL GAINS
Capital gains earned by non-residents from selling Guatemalan property are subject to a flat 31% withholding tax. The taxable gain is computed by deducting the acquisition costs and improvement costs from the selling price or current market value of the property, whichever is greater.
VALUE ADDED TAX (impuesto al valor agregado)
VAT is levied at a uniform rate of 12% and applies (among others) to the sale or rental of real estate.
LEASING REAL ESTATE
VAT imposed on leasing properties is based on the gross rent plus any financing charge.
SELLING REAL ESTATE
VAT is imposed on the selling of immovable properties in Guatemala and the taxable amount is the selling price.
PROPERTY TAX
Real Tax or Property Tax (impuesto unico sobre inmuebles)
Property taxes are annual taxes levied on all Guatemalan property, collected by the local municipalities. The tax base is the cadastral value of the property, as determined by the tax authorities. Property owners are liable to pay for this tax.
PROPERTY TAX |
|
| TAX BASE, GTQ (US$) | TAX RATE |
| Up to 2 million (US$247,632) | |
| 2 million – 20 million (US$2,476,320) | |
| 20 million – 70 million (US$8,667,121) | |
| Over 70 million (US$8,667,121) | |
| Source: Global Property Guide | |
Guatemala - more data and information
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