Guatemala Tax Rates
Guatemala operates a territorial tax system administered by the Superintendencia de Administración Tributaria (SAT). Only Guatemalan-source income is taxable, regardless of residency. Personal income tax is 5-7% on employment income, the corporate rate is 25% (or 5-7% under the simplified regime), and VAT (IVA) is 12%.
Top Income Tax Rate
7%
Corporate Tax Rate
25%
VAT / Sales Tax
12%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Guatemala imposes personal income tax on employment income at 5% on taxable income up to GTQ 300,000 and 7% above that (after a GTQ 48,000 annual exempt amount). Only Guatemalan-source income is taxable under the territorial system. Self-employment and business income can be taxed under the profit regime (25% on net income) or the simplified regime (5-7% on gross income).
| Income Range | Tax Rate |
|---|---|
| Q 0 – Q 48K | 0% |
| Q 48K – Q 300K | 5% |
| Q 300K+ | 7% |
Corporate Tax
Guatemala offers two corporate regimes: the profit regime at 25% on net taxable income, or the simplified regime at 5% on gross income up to GTQ 30,000 per month and 7% on amounts above that. Most larger businesses use the 25% profit regime. Companies in free trade zones enjoy significant tax exemptions.
Standard Rate
25%
Small Business Rate
5%
Capital Gains Tax
Capital gains from the sale of real estate, shares, and other assets in Guatemala are taxed at a flat 10% rate. The tax is applied to the net gain (sale price minus acquisition cost and improvements).
Rate
10%
VAT / Sales Tax
Guatemala levies a 12% IVA on most goods and services. Exports are zero-rated. Small taxpayers with annual revenue below GTQ 150,000 may use a simplified 5% regime on gross sales instead of the standard IVA system.
Standard Rate
12%
Cryptocurrency Tax
Guatemala does not have specific cryptocurrency legislation. Under the territorial tax system, crypto income would only be taxable if considered Guatemalan-source. The Bank of Guatemala has warned about risks of virtual currencies.
Tax Treaties
Guatemala does not have any comprehensive double taxation agreements in force. The country relies on unilateral relief and participates in some international tax information exchange frameworks.
Treaty Network
0
Double taxation agreements
Key Details
Relocate to Guatemala
See how much you could save by moving here from your current country.
+$17K
Tax in United States
$24K
24.4% effective
Tax in Guatemala
$7K
7.4% effective
You Save
69.5%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
