Guatemala

Last update: 2026-05-11

GT GTQQ Spanish

Pros
Low tax-to-GDP ratio allowing for significant private capital accumulation and reinvestment.
Territorial tax system exempting all foreign-sourced income from domestic taxation.
Stable macroeconomic framework with a resilient currency and limited state market interference.

Cons
Widespread institutional corruption undermining legal certainty and the protection of property rights.
Substandard physical infrastructure leading to high logistical costs and operational inefficiencies.
Significant security risks necessitating substantial private investment in personnel and asset protection.

Personal income

5 → 7%

progressive

Corporate

5 → 7%

progressive

Capital gains

10%

flat

VAT (standard)

12%

standard rate

i 10 PRIVACY GRADE

i 8.3 VERY LOW TAX

i 6.2 HOLDING

i 5.8 DIVIDEND PIPELINE

i 2 CRYPTO HAVEN

i 2 EASY CITIZENSHIP

─ On this page

01 Will Guatemala tax what you earn? 02 Will Guatemala tax what you own? 03 Is it easy to run a company in Guatemala? 04 Is Guatemala good for your holding company? 05 What does it cost to come and go from Guatemala? 06 Will Guatemala protect your privacy? 07 Is Guatemala itself a liability? 08 Will you feel free in Guatemala?

01/08

Will Guatemala tax what you earn?

●income tax ●tax residency ●territorial system

YES, BUT LIGHTLY. Personal income tax in Guatemala is light (7% at the top), and the territorial regime narrows the catchment further: foreign-source income falls outside. Friendly headline, friendlier design.

Personal income taxi

5 → 7%

progressive · 2 brackets

Income simulatori

Income

Tax due

Effective rate

all-in

Marginal rate

Tax residence testi

183days

● 183-day rule

● Economic interest

○ Family centre

○ Habitual abode

○ Extended-stay test

● Just one rule above is enough to make you tax-resident here.

02/08

Will Guatemala tax what you own?

●capital gains ●wealth tax ●inheritance ●dividends ●interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 10% in Guatemala, but the country also applies an annual wealth tax (top rate 0.9%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi

10%

flat

Dividend taxi

flat

Interest incomei

10%

flat

Wealth taxi

0.2 → 0.9%

progressive · threshold 262

Crypto · tax regimei

Regime

UNREGULATED

Fallback rate

10%

Guatemala lacks specific cryptocurrency legislation. The Tax Authority (SAT) applies general tax rules under Decree 10-2012, treating crypto-assets as intangible property. Capital gains from the sale or exchange (permuta) of crypto are taxed at a flat 10% rate. Professional or habitual trading is classified as business income, subject to either a 25% tax on net profits or a 5-7% tax on gross income under the simplified regime. The Central Bank (BANGUAT) has issued multiple warnings stating that cryptocurrencies are not legal tender and are not backed by the state.

Crypto-to-cryptoi

TAXABLE

each swap counts as a disposal — gains realised at every trade

FATF travel rulei

NOT SIGNED

no information-sharing obligation on VASP transfers

Inheritance systemi

NONE

no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.

03/08

Is it easy to run a company in Guatemala?

●corporate tax ●criminal liability ●public registry ●VAT ●IP box

YES. Corporate tax in Guatemala sits at a low 7%, with no criminal liability for misuse of corporate assets and non-public corporate registries. Cheap to run, discreet on ownership, calm on legal posture. A clean operating jurisdiction.

Corporate taxi

5 → 7%

progressive · +25% Standard corporate tax regime on net income (profits). The 5-7% base rates correspond to the simplified optional regime which taxes gross revenue, not profits.

IP Box · Patent Boxi

NONE

no IP regime · IP income taxed under standard corporate rules

Misuse of corporate assetsi

NO CRIMINAL LIABILITY

Civil Matter / Articles 241 and 242 of the Penal Code

In Guatemala, the crime of 'Fraudulent Administration' (Administración Fraudulenta) under Article 242 of the Penal Code requires the element of 'harm to the owner' (perjudicare a su titular) or a third party. In a scenario where the sole director is also the sole shareholder and the company remains solvent, there is no third-party victim (such as creditors or minority shareholders) to sustain a criminal charge. Consequently, the act is treated as a civil matter (confusion of patrimony/piercing the corporate veil) or a tax violation (illegal dividends or non-deductible personal expenses) rather than a criminal offense.

Shareholders privacyi

PRIVATE

Registro Mercantil de la República de Guatemala

Directors privacyi

PUBLIC PAYWALL

Registro Mercantil de la República de Guatemala

Incorporation costi

Stock Corporation

Sociedad Anónima

Government Registration Fees (Registry, Edicts, and Patents) USD 66

Professional Legal and Notary Fees for Incorporation USD 1,311

Total USD 1,376

VAT standard ratei

12%

single rate · no reduced tiers

12%

Food & drink

12%

food

12%

non-alcoholic

12%

alcohol

Print media

12%

books

12%

ebooks

12%

newspapers

Culture

12%

cultural events

12%

cinema

12%

theatre

12%

museums

12%

sports

Transport

12%

public transit

12%

rail

12%

air

Hospitality

12%

hotels

12%

restaurants

12%

takeaway

Health

12%

pharma

12%

medical dev.

Energy

12%

electricity

12%

natural gas

12%

district heat.

12%

domestic fuel

Utilities

12%

water

12%

waste

Clothing

12%

kids clothing

Digital & telecom

12%

digital

12%

telecom

12%

broadcast

Construction

12%

construction

12%

social housing

Agriculture

12%

farm inputs

12%

animal feed

Personal services

12%

funeral

12%

hairdressing

Finance

12%

insurance

12%

financial svc.

04/08

Is Guatemala good for your holding company?

●treaty network ●participation exemption ●withholding

YES, BUT THIN. Guatemala runs a full participation exemption (100% on qualifying dividends and gains), but its thin treaty network (1 agreements) limits the geographies where the holding can sit without taking a withholding hit on the source side. Workable for regional structures, not for global ones.

Territorial systemi

Individuals

TERRITORIAL

Corporates

TERRITORIAL

Individuals: territorial — foreign-source income generally untaxed. Corporates: territorial principle — foreign-source profits generally exempt.

Participation exemptioni

100%

no minimum threshold · no holding period

CFC rulesi

NONE

no controlled foreign corporation regime · foreign-source corporate income out of scope

WHT · dividendsi

non-resident outbound

WHT · interest

10%

non-resident outbound

WHT · royalties

15%

non-resident outbound

Tax-haven WHT

penalty rate · blacklisted destinations

Treaties signedi

active

Treaties pending

in negotiation

Tax treaty networki

origin · GT 0% > 0% no treaty

⌖

Inspect a country

Hover any country on the map to read its withholding-tax treaty with GT.

Country	Status	Dividends	Interest	Royalties

∅ // no treaties match

05/08

What does it cost to come and go from Guatemala?

●exit tax ●territorial system ●dual citizenship

LITTLE. Coming and going from Guatemala is cheap. The country runs a territorial system (foreign income stays foreign), and there's no exit tax on departure. You leave with what you came in with, plus whatever you earned abroad while you were here.

Exit taxi

NONE

no triggers active · residence change tax-free · no deemed-disposal mechanism

Dual citizenship

FORBIDDEN

naturalisation requires renouncing existing citizenship

Citizenship paths

● Residence

○ Marriage

● Birth

○ Descent

○ Investment

06/08

Will Guatemala protect your privacy?

●info exchange ●corporate registries

YES. Guatemala has joined almost none of the major automatic-exchange frameworks (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are non-public. Account flows stay out of foreign hands; ownership stays out of public ones. Discretion is built into the system.

Multilateral reporting frameworks 2/10 active · 2 pending

CRS

—

CARF

—

FATCA

—

MLI

—

BEPS

—

MAAC

2017

GLOBAL FORUM

—

EOIR

—

CRYPTO-CARF

—

CRYPTO TRAVEL RULE

—

07/08

Is Guatemala itself a liability?

●blacklists ●FATF standing

NO. Guatemala carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere

FATF

grey / black list

non-cooperative list

FRANCE

ETNC list

SPAIN

tax-haven list

PORTUGAL

favourable regimes

BRAZIL

low-tax list

08/08

Will you feel free in Guatemala?

●press freedom ●crypto ●CBDC ●EU

NO. Press freedom in Guatemala is restricted (RSF rank #138). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi

138/180

score 40 · · 0 rank year-on-year

Central bank digital currencyi

Program	Status	Cross-border	Sources
iQuetzal The central banks of Honduras and Guatemala are eying digital currencies, officials said on September, following El Salvador's adoption of bitcoin as legal currency. Bank of Guatemala	RESEARCH	—	announce →

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Guatemala. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.

Paraguay PY → Libya LY → El Salvador SV →

NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

United Arab Emirates AE →

NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

El Salvador SV → 🇧🇶 Caribbean Netherlands BQ → Somalia SO →