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Jan 21, 2014

Taxes are very high at 31%


INDIVIDUAL TAXATION

Guatemala modern luxury beach house

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%.

Nonresidents can avail of the following personal deductions:

  • a total of GTQ36,000 (US$4,598) 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 GTQ500,000 (US$63,857)

RENTAL INCOME
Rental income earned by nonresidents 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 realized from selling real estate property are subject to capital gains tax at a flat rate of 10% as of January 2013. The taxable gain is computed by deducting the acquisition costs and improvement costs from the selling price.

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.

VAT imposed on leasing properties is based on the gross rent plus any financing charge.

VAT is imposed on the selling of immovable properties in Guatemala and the taxable amount is the selling price.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 31% for 2013. Income-generating expenses are deductible when calculating taxable income.

Corporate tax rate will be reduced to 28% for 2014, and it will be further reduced to 25% in 2015.

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$255,428)
0%
2 million 20 million (US$2,554,278)
0.20%
20 million 70 million (US$8,939,975)
0.60%
Over 70 million (US$8,939,975)
0.90%
Source: Global Property Guide





Comments

#1 ATITLAN SOLUTIONS | August 01, 2012

This information is interesting but it seems out dated as in fevruary 2012 new taxes laws have been voted. Changing affecting the non resident with property in Guatemala.

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