Inheritance tax and inheritance law in Guatemala
Taxation Researcher | June 18, 2020
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 |
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| TAX BASE, GTQ (US$) | TAX RATE ON DIFFERENT CATEGORIES | ||||||
| I | II | III | IV | V | VI | VII | |
| Up to 50,000 (US$6,536) | 1% | 2% | 3% | 5% | 7% | 9% | 12 |
| 50,000 - 100,000 (US$13,072) | 2% | 3% | 4% | 6% | 9% | 10% | 14% |
| 100,000 - 200,000 (US$26,144) | 3% | 4% | 5% | 7% | 10% | 11% | 16% |
| 200,000 - 300,000 (US$39,216) | 4% | 5% | 6% | 8% | 11% | 12% | 18% |
| 300,000 - 500,000 (US$65,360) | 5% | 6% | 7% | 9% | 12% | 13% | 20% |
| Over 500,000 (US$63,360) | 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$131) 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$65). For Category I and II recipients who are less than 12 years old, the allowance is GTQ1,000 (US$131). Category III to VII recipients can each deduct an allowance of GTQ300 (US$39).