# Guatemala

 Country code: GT · Currency: GTQ · Language: 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.

Long story short: Nobody here will dig through your books: Guatemalan tax authorities have neither the manpower nor the will to hunt you down. The flip side: institutions are corrupt to the bone, and without a local lawyer, a simple procedure can turn into a nightmare.

Beyond that: the banking system is solid but old-school, public infrastructure is rundown outside the nicer neighborhoods, security is decent in Zona 10 and Zona 14, food ranges from Mayan street eats to fine dining, and the landscapes are worth the trip two hours from the capital.

## Will your income be taxed?

Long story short: YES, BUT LIGHTLY.
Income tax in **Guatemala** is already light (**7%** at the top), and the *territorial* regime shrinks the net further: foreign-source income doesn't even enter it.

Friendly sticker, friendlier machinery.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 5 → 7% | progressive · 2 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 39,345 | 5% |
| 39,345 + | 7% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Capital gains get off easy in **Guatemala** (**10%**); the *annual wealth tax* doesn't (top rate **0.9%**). It nibbles your pile every year, sold or not, and over a long hold the nibbling out-eats the sale tax entirely.

Watch the stock, not just the flow.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 10% | flat |
| Dividend tax | 5% | flat |
| Interest income | 10% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | 0.2 → 0.9% | progressive · threshold 262 |

| Bracket (USD) | Rate |
| --- | --- |
| 262 – 2,623 | 0.2% |
| 2,623 – 9,180 | 0.6% |
| 9,180 + | 0.9% |

| Metric | Value | Detail |
| --- | --- | --- |
| Inheritance system | 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. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax 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-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES.
Corporate tax in **Guatemala** sits at a *low* **7%**, with *no criminal liability* for misuse of corporate assets and *non-public* registries.

Cheap to run, discreet about who owns what, and no prosecutor breathing down your neck. A clean place to operate.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 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. |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,934 | 5% |
| 3,934 + | 7% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | 12% | single rate · no reduced tiers |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 12% |
| Food & drink | non-alcoholic | 12% |
| Food & drink | alcohol | 12% |
| Print media | books | 12% |
| Print media | ebooks | 12% |
| Print media | newspapers | 12% |
| Culture | cultural events | 12% |
| Culture | cinema | 12% |
| Culture | theatre | 12% |
| Culture | museums | 12% |
| Culture | sports | 12% |
| Transport | public transit | 12% |
| Transport | rail | 12% |
| Transport | air | 12% |
| Hospitality | hotels | 12% |
| Hospitality | restaurants | 12% |
| Hospitality | takeaway | 12% |
| Health | pharma | 12% |
| Health | medical dev. | 12% |
| Energy | electricity | 12% |
| Energy | natural gas | 12% |
| Energy | district heat. | 12% |
| Energy | domestic fuel | 12% |
| Utilities | water | 12% |
| Utilities | waste | 12% |
| Clothing | kids clothing | 12% |
| Digital & telecom | digital | 12% |
| Digital & telecom | telecom | 12% |
| Digital & telecom | broadcast | 12% |
| Construction | construction | 12% |
| Construction | social housing | 12% |
| Agriculture | farm inputs | 12% |
| Agriculture | animal feed | 12% |
| Personal services | funeral | 12% |
| Personal services | hairdressing | 12% |
| Finance | insurance | 12% |
| Finance | financial svc. | 12% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · 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 privacy | PRIVATE | Registro Mercantil de la República de Guatemala |
| Directors privacy | PUBLIC PAYWALL | Registro Mercantil de la República de Guatemala |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Sociedad Anónima (Stock Corporation). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees (Registry, Edicts, and Patents) | USD 66 |  |
| Professional Legal and Notary Fees for Incorporation | USD 1,311 |  |
| Total | USD 1,377 |  |

## A good fit for a holding?

Long story short: YES, BUT THIN.
**Guatemala** runs a *full participation exemption* (**100%** on qualifying dividends and gains), but the treaty network is *skinny* (**1** agreements): in plenty of geographies your dividends get clipped at the source before they ever reach the holding.

Fine for a regional play, undersized for a global one.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | TERRITORIAL | territorial — foreign-source income generally untaxed |
| Territorial · corporates | TERRITORIAL | territorial principle — foreign-source profits generally exempt |
| Participation exemption | 100% | no minimum threshold · no holding period |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 5% | non-resident outbound |
| WHT · interest | 10% | non-resident outbound |
| WHT · royalties | 15% | non-resident outbound |
| Tax-haven WHT | 5% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | 1 | in negotiation |

## Easy to come and go?

Long story short: LITTLE.
Coming and going from **Guatemala** costs you nothing worth mentioning. *Territorial* regime (foreign income stays foreign), *no exit tax* at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | jus soli | available path to naturalisation |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Nobody's reading over your shoulder in **Guatemala**. It has joined *almost none* of the big automatic-exchange machines (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are *non-public*.

Your account movements stay out of foreign tax offices; your name stays out of search boxes. Here, discretion isn't a perk; it's the factory setting.

**Multilateral reporting frameworks — 2/9 active · 2 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | Signed | — |
| MAAC | In force | 2017 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Guatemala** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Guatemala** is *locked down* (RSF rank **\#138**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 138/180 | score 40 · · 0 rank year-on-year |

Central bank digital currency

    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 →](https://www.reuters.com/technology/central-banks-honduras-guatemala-eye-digital-currencies-el-salvador-launches-2021-09-08/ "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Guatemala**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**4/11**), but for an online business this is swimming against the current.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## 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  → ](https://stateless.sx/en/country/py) [   Malawi MW  → ](https://stateless.sx/en/country/mw) [   Japan JP  → ](https://stateless.sx/en/country/jp)

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

 [   United Arab Emirates AE  → ](https://stateless.sx/en/country/ae)

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

 [   Malawi MW  → ](https://stateless.sx/en/country/mw) [   Japan JP  → ](https://stateless.sx/en/country/jp) [   Nigeria NG  → ](https://stateless.sx/en/country/ng)