Guatemala Capital Gains Tax Guide 2026
Guatemala does not have a separate capital gains tax rate. Capital gains are treated as ordinary income and taxed under the progressive ISR rates (5–31%) for individuals or 25% for companies. Only gains from the sale of assets located in Guatemala are taxable (territorial system). Foreign capital gains are not taxed. Real estate, shares, and business assets are all subject to CGT as ordinary income.
Overview — CGT in Guatemala
Capital gains in Guatemala are not treated separately from ordinary income. Gains arising from the sale of assets are included in the taxpayer's total income and taxed at the applicable progressive ISR rates (5–31% for individuals, 25% for companies). The gain is calculated as the difference between the sale price and the adjusted cost basis of the asset. Only gains from assets located in Guatemala are subject to tax due to the territorial system. For individuals, gains are aggregated with other income such as salary and rental income and taxed at progressive rates. This means a high-income earner could pay up to 31% on capital gains.
Real Estate Gains
Gains from the sale of real estate located in Guatemala are taxable as ordinary income. The gain is the difference between the sale price and the historical acquisition cost, adjusted for capital improvements and inflation. The purchaser of real estate is required to withhold 10% of the sale price and remit it to SAT as an advance payment of ISR for the seller. This withholding is creditable against the seller's final ISR liability. The transfer of real estate is also subject to stamp duty and registration fees at municipal level. The principal residence may qualify for partial relief if the proceeds are reinvested in a new primary residence within 12 months.
Share & Securities Gains
Gains from the sale of shares in Guatemalan companies are subject to ISR as ordinary income. Gains from the sale of shares listed on the Bolsa de Valores Nacional (BVN) may be subject to specific treatment. Unlisted share gains are calculated as the difference between sale price and acquisition cost. If shares were acquired before the current ISR law's effective date, special transition rules apply. Gains on foreign shares (non-Guatemalan companies) are not taxable due to the territorial system, making Guatemala attractive for international portfolio investors.
FAQs
Are capital gains on foreign investments taxable?
No, under Guatemala's territorial system, capital gains from the sale of assets located outside Guatemala are not subject to Guatemalan ISR.
Can capital losses be offset against capital gains?
Yes, capital losses may be offset against capital gains in the same tax year. Unrelieved losses may be carried forward for up to 5 years but cannot be offset against other income.
What is the withholding rate on real estate sales?
The buyer must withhold 10% of the sale price as an advance ISR payment for the seller. This is creditable against the seller's final annual ISR liability.
Disclaimer
This guide provides general information about Guatemalan capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Guatemalan tax advisor or SAT for advice specific to your situation. InvestmentKit does not provide tax advice.