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$4,686) 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$65,083)

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 earned by nonresidents 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.

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.

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.