Guatemala Property Tax Guide 2026

Overview — Property Taxation in Guatemala

Property tax in Guatemala is administered at the municipal level through the IUSI (Impuesto Único Sobre Inmuebles). The tax is an annual levy of 1.5% on the registered value of real estate (land and buildings). The registered value is determined by the municipal cadastral valuation or the purchase price declared in the deed, whichever is higher. Municipalities are responsible for collection. Property owners must register their property with the municipality and the Property Registry. The property tax is relatively modest compared to many other countries, and there are no additional national wealth taxes on property.

IUSI — Annual Municipal Tax (1.5%)

The IUSI is imposed at 1.5% on the registered value of urban real estate. For rural property, the rate is 0.75% of the registered value. The tax is calculated on the cadastral value (valor catastral) determined by the municipality, which is typically lower than market value. Property owners may request a revaluation. The annual IUSI is payable in quarterly instalments or annually. Payment is made to the municipal treasury. Non-payment results in fines, interest, and potential seizure of the property. Some municipalities offer discounts for early payment of the full annual amount.

Property Transfer Costs

When transferring property in Guatemala, the buyer pays several costs:

• Stamp duty (Papel Sellado) — 0.5% of the property value
• Registration fee — 0.3% of the property value paid to the Property Registry
• Legal fees — typically 1–3% of the purchase price for the notary public (notario)
• ISR withholding — 10% of sale price withheld by buyer as advance ISR for seller

Total transaction costs typically range from 3% to 5% of the purchase price. These costs are not tax deductible for owner-occupiers but may be added to the cost base for ISR purposes on eventual sale.

Property Registration

All property in Guatemala must be registered with the Registro de la Propiedad (Property Registry). The registry maintains title records and encumbrances. A registered property has a folio number that tracks all transactions, liens, mortgages, and other legal matters affecting the property. Title insurance is available but not mandatory. Foreigners may own property in Guatemala, including land and buildings, with certain restrictions on land near borders and coastlines.

FAQs

Do I pay property tax if I own a house but live abroad?

Yes, IUSI is payable annually regardless of the owner's residency. Non-resident owners should appoint a local representative to handle payments.

How is property value assessed for IUSI?

Municipalities use cadastral valuations based on location, size, construction quality, and market conditions. Revaluations occur periodically. Property owners can request a valuation review.

Are there tax incentives for property development?

Some municipalities offer IUSI exemptions (typically for 5–10 years) for new construction or major renovations in designated development zones. Check with the local municipality.

Disclaimer

This guide provides general information about Guatemalan property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Guatemalan property lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.