Guatemala tax
Tax residence: More than 183 days in calendar year. Special regime for new residents: Guatemala territorial income tax.
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Tax residence
- More than 183 days in calendar year · Presence in Guatemala, continuous or not, makes an individual resident (art. 6 no. 1 lit. a)
- The source principle means income from outside Guatemala is not Guatemalan-source income under Article 4.
Special regimes for new residents
Special regime
Guatemala territorial income tax (rentas obtenidas en territorio nacional)
Tax relief
Details
- Who: Applies to residents and non-residents alike
- Limit: GTQ 300k/yr ≈ $39k
Guatemala's Impuesto Sobre la Renta applies only to income obtained within national territory (art. 3, Decreto 10-2012), whatever the nationality or domicile of the recipient; Guatemalan-source income is defined in art. 4. 1
Taxed on
Income obtained in Guatemalan territory by category (profit activities, employment income, capital income); employment income of individuals is taxed at 5% up to Q300,000 of taxable income and Q15,000 plus 7% on the excess (art. 73 as enacted in 2012).
Who it applies to
- Applies to residents and non-residents alike; the source rules in art. 4 decide what is taxed. Income generated outside Guatemala is not Guatemalan-source income under arts. 3 and 4.
- Individuals are tax residents if present more than 183 days in a calendar year (continuity not required), or if their centre of economic interests is in Guatemala unless they prove tax residence elsewhere by a certificate from that country's tax authority (art. 6).
Exclusions
- Income from activities carried out within Guatemala, assets located in Guatemala and capital income such as gains on shares of entities whose assets are Guatemalan real estate is Guatemalan-source (art. 4).
- Non-residents with Guatemalan-source income are taxed under title V of the law.
Limits
- GTQ 300,000 a year (≈ $39,200) · Employment-income scale: 5% applies to taxable income up to Q300,000; above it Q15,000 plus 7% of the excess (art. 73, 2012 text)
Days in the country
- More than 183 days in calendar year · Presence in Guatemala, continuous or not, makes an individual resident (art. 6 no. 1 lit. a)
Tax residence
Residence for tax purposes is not tied to immigration status; the alternative test is centre of economic interests in Guatemala.
Visas
The territorial base applies regardless of visa or residence permit.
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Standard rules and foreign-source income
Standard rules
Income tax (ISR): Guatemalan-source income and employment scale
7% tax
Details
- On: Guatemalan-source income
- Limit: GTQ 300k/yr ≈ $39k
Decree 10-2012 taxes income of Guatemalan source (Article 4: income generated within national territory); employment income is taxed at 5% up to Q300,000 and Q15,000 plus 7% on the excess. 1
Taxed on
Guatemalan-source income; employment income after the Q48,000 personal expense deduction
Limits
- GTQ 300,000 a year (≈ $39,200) · Employment income taxed at 5% up to this amount; Q15,000 plus 7% of the excess above it.
- GTQ 48,000 a year (≈ $6,280) · Personal expenses deductible without documentation for employment income.
Tax residence
The source principle means income from outside Guatemala is not Guatemalan-source income under Article 4.
Visas
Rentista and pensioner permanent residents pay IGM annual fees, not a tax relief.
Other taxes
The 7% Optional Simplified Regime on gross income for professionals and a 25% profits regime also exist in the Decree.
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VAT, social security and other taxes
- The 7% Optional Simplified Regime on gross income for professionals and a 25% profits regime also exist in the Decree.
Questions people ask
When do you become a tax resident in Guatemala?
More than 183 days in calendar year (Presence in Guatemala, continuous or not, makes an individual resident (art). The source principle means income from outside Guatemala is not Guatemalan-source income under Article 4.
Who qualifies for Guatemala territorial income tax?
Applies to residents and non-residents alike; the source rules in art. The territorial base applies regardless of visa or residence permit.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (1)
Official sources
- Decreto 10-2012 Ley de Actualización Tributaria, Libro I, arts. 3, 4, 6, 72-73 · Congreso de la República de Guatemala · checked 2026-10-10 · published 2012-03-05