Guatemala Establishes New Tax Rates on Real Estate and Provides Capital Gains Exemption for Individuals

Guatemala's Ministry of Finance has published Decree 18-2026, which was originally published in the Official Gazette on 28 August 2026. The Decree amends the Law of the Single Tax on Real Estate (Impuesto Único Sobre Inmuebles - IUSI) and other related tax laws. The main changes include:

• The following IUSI rates are established for real estate used for commercial and other purposes, based on the registered value:
  • GTQ 0 to 500,000.00 - 3 per thousand (0.3%)
  • GTQ 500,000.01 to 1,000,000.00 - 6 per thousand (0.6%)
  • GTQ 1,000,000.01 and above - 9 per thousand (0.9%)
• An IUSI rate of 0 per thousand (i.e., an exemption) is established for real estate used for housing, residential use, or mixed use; and
• An income tax exemption is provided for individuals on capital gains derived from the transfer of real estate in Guatemala, which specifically excludes legal entities, trusts, undivided estates, and any other entity with or without legal personality that pays income tax, as well as individuals who have registered economic activities related to the purchase, sale, construction, development, marketing, etc. of real estate.

The IUSI changes apply from 26 November 2026. The income tax exemption applies from 1 January 2027.