Inheritance tax and inheritance law in Guatemala

November 19, 2014

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

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).

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