Guatemala Investment Income Guide 2026

Overview — Investment Income Taxation

Guatemala taxes investment income through final withholding taxes at source for most passive income streams. The territorial system limits taxation to Guatemala-source income. For residents, foreign investment income is generally exempt. For non-residents, withholding tax rates on Guatemala-source investment income apply, which may be reduced under applicable double tax treaties. The SAT administers all withholding tax under the ISR Law (Decree 10-2012). The Guatemalan investment landscape includes bank deposits, government and corporate bonds, listed shares on the Bolsa de Valores Nacional, and mutual funds.

Dividends — 5% WHT (Final for Residents)

Dividends paid by Guatemalan-resident companies are subject to a 5% withholding tax on the gross dividend amount. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive ISR assessment. For corporate shareholders, the 5% WHT is also generally final. For non-residents, the dividend WHT rate is 5% as well, subject to treaty relief. Dividends distributed by companies that have already paid ISR on the underlying profits are considered already-taxed profits, and the 5% WHT is the final tax at the shareholder level.

Interest Income — 10% WHT

Interest income from Guatemalan sources is generally subject to 10% withholding tax:

• Bank deposits — 10% final WHT on interest earned
• Government bonds — 10% WHT on interest payments
• Corporate bonds — 10% WHT on interest
• Other financial instruments — 10% WHT

The 10% WHT is a final tax for resident individuals. For companies, the withheld tax is creditable against their ISR liability. Interest paid to non-residents is also subject to 10% WHT, which may be reduced under applicable double tax treaties. Interest from foreign sources is not taxable in Guatemala due to the territorial system.

Capital Gains — Territorial Treatment

As covered in the capital gains guide, only gains from assets located in Guatemala are subject to ISR. Gains from the sale of foreign-listed shares, foreign real estate, and other foreign assets are not taxable in Guatemala. Gains from Guatemalan assets are treated as ordinary income and taxed at progressive rates for individuals or 25% for companies.

Mutual Funds & Collective Investment Schemes

Mutual funds and collective investment schemes in Guatemala are generally pass-through vehicles for tax purposes. The fund itself is not subject to ISR on its investment income. Instead, investors are taxed directly on distributions received. Dividends distributed by mutual funds retain their character — dividend distributions are subject to 5% WHT, interest distributions to 10% WHT. Capital gains distributions are subject to ISR at the investor's applicable rate. Foreign mutual fund investments are not taxable for Guatemalan residents due to the territorial system.

FAQs

Do I need to report foreign dividend income in Guatemala?

No, Guatemala's territorial system exempts foreign-source income. Foreign dividends earned by residents are not subject to Guatemalan ISR and need not be reported.

Are Treasury bill gains taxable?

Yes, interest from Guatemalan government bonds and Treasury bills is subject to 10% WHT, which is a final tax for individual residents.

Can I claim a foreign tax credit for withholding tax paid abroad?

Since foreign investment income is not taxable in Guatemala, there is no need for a foreign tax credit. No credit or deduction is available for foreign taxes paid.

Disclaimer

This guide provides general information about Guatemalan investment income taxation 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.