Guatemala Rental Income Guide 2026

Overview — Rental Income Tax in Guatemala

Rental income from letting or leasing of immovable property located in Guatemala is chargeable to ISR. The tax treatment depends on the type of landlord: individuals are taxed at progressive rates (5–31%) on net rental income, while companies are taxed at 25%. Rental expenses are deductible. For non-resident landlords, a 10% withholding tax on gross rental income is applied as a final tax. The tenant is responsible for withholding the tax and remitting it to SAT. Property owners must declare rental income in their annual ISR return, with credit given for any withholding tax already paid.

Residential Property — Progressive ISR Rates

For individual landlords letting residential property, rental income is included in total annual income and taxed at the progressive ISR rates (5–31%). The net rental income is calculated as gross rent received less allowable deductions. The personal exemption of GTQ 60,000 applies against total income including rent. Landlords must issue invoices (FEL) for rent received and declare rental income in their annual ISR return. The tenant may be required to withhold 10% as an advance ISR payment if the landlord does not issue invoices.

Allowable Deductions

Landlords may deduct expenses incurred in generating rental income:

• Mortgage interest — interest on loans used to acquire or improve the property
• IUSI property tax — annual municipal tax paid
• Repairs & maintenance — not capital improvements
• Property management fees — paid to licensed agents
• Insurance premiums — fire and other property insurance
• Depreciation — buildings may be depreciated at 5% per year
• Utilities — if paid by the landlord (water, electricity, etc.)
• Legal & professional fees — related to rental activities

To claim deductions, the landlord must file an annual ISR return and maintain supporting documentation including invoices (FEL) and contracts.

Short-Term Rentals & Airbnb

Short-term letting (Airbnb, holiday rentals) is also subject to rental income ISR. The income from short-term rentals is taxable on the same basis as long-term rentals. Platforms like Airbnb may be required to report income to SAT. Expenses directly related to short-term rental activity (cleaning, supplies, platform fees) are deductible.

FAQs

Who is responsible for withholding rental tax?

For non-resident landlords, the tenant must withhold 10% of gross rent and remit it to SAT. For resident landlords, no withholding is required if the landlord issues proper invoices (FEL).

How are advance rent payments taxed?

Rental income is taxable in the year it is received, regardless of the period it covers. If you receive 2 years' rent upfront, the full amount is taxable in that year.

Is foreign rental income taxable in Guatemala?

No, Guatemala's territorial system exempts foreign-source income. Rental income from properties outside Guatemala is not subject to Guatemalan ISR.

Disclaimer

This guide provides general information about Guatemalan rental income 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.