Real Estate Taxation in Guatemala for French Nationals: Understanding Local Taxes, Capital Gains, and the Absence of a Tax Treaty

Published on July 21, 2026 and written by Cyril Jarnias

Buying a house on the shores of Lake Atitlán, an apartment in Guatemala City or a rental property in a colonial town is a dream for a growing number of French people. The country offers very open property rights to foreigners, still-attractive prices, and a territorial tax system that, on paper, seems light. But as soon as you take a closer look at Guatemalan real estate taxation—and especially how it interacts with French tax law—the picture quickly becomes more complex.

Buying a property in Guatemala: transfer taxes and acquisition costs

In Guatemala, taxes at purchase depend primarily on the type of transaction. The key distinction is not between resident and non‑resident, nor between local and foreigner, but between first sale (new / developer) and resale (second-hand).

12% VAT or 3% stamp duty: a choice imposed by the nature of the sale

For a real estate purchase, two regimes apply, which are mutually exclusive:

– VAT (IVA) at 12%;

– stamp duty (timbres fiscales / Impuesto de Transferencia de Bienes Inmuebles) at 3%.

The rule is as follows:

– if the property is sold for the first time by a developer or a seller who habitually carries out real estate sales activities, the transaction is subject to VAT at 12%;

– if the property is resold (second or subsequent transfer) between individuals or outside the scope of VAT, the 3% stamp duty applies.

This 3% rate is calculated on the value declared in the notarial deed (escritura pública). In theory, this value must correspond to the actual price paid. Under-declaring to reduce stamp duty is illegal and can jeopardize the validity of the sale.

To visualize the impact, we can summarize as follows:

In practice, for new developments, the 12% VAT is often already included in the price advertised to the public, but it is prudent to clarify in writing whether the price is “VAT included” or not.

Notary fees, registration and ancillary costs

In addition to VAT or stamp duty, the buyer bears several categories of mandatory costs:

– notary fees (the notary must be a lawyer in Guatemala) for drafting and executing the escritura pública;

– registration fees at the Land Registry (Registro General de la Propiedad – RGP);

– administrative fees: fiscal stamps, stamped paper, certificates, certified copies, etc.;

– possibly fees for a consulting attorney in charge of title review and structuring (separate from the instrumental notary).

For simple transactions, some practitioners go as low as 0.5%, while complex structures (corporate setup, restricted zone, litigation to clear, etc.) can exceed 2%.

Registration fees at the land registry remain modest, around 0.15% to 0.3% of the value, or sometimes in the form of fixed fees in quetzals (e.g., a few hundred quetzals plus an amount per value bracket).

The total of all these costs results, according to the analyzed sources, in a total acquisition cost generally falling within:

– between 4% and 7% of the price for a resale subject to 3% stamp duty;

– between 14% and 16% of the price for a new or first sale property subject to 12% VAT (because VAT weighs heavily on the overall cost).

A summary table using a sample property of USD 100,000 helps illustrate the order of magnitude:

Percentages vary depending on fee negotiation and any sharing of certain costs between seller and buyer, but the key message is simple: in Guatemala, the entry cost is moderate for resales, significantly higher for new properties due to VAT.

Specifics for French buyers: NIT and restricted zones

From a strictly tax perspective, a French person is treated like any other foreigner. However, two practical points deserve emphasis.

Furthermore, certain areas are restricted: a foreigner cannot directly acquire land located within a 15 km strip along borders, a 3 km strip along coastlines, or a strip of about 200 meters around lake shores and 100 meters along major navigable waterways. These restrictions are land-related but have indirect tax consequences, particularly if a local company is used (with specific tax obligations).

Property tax (IUSI): the annual tax on ownership

Once the property is acquired, every owner—Guatemalan or foreign, resident or non‑resident—is liable for the local property tax: the Unique Tax on Real Estate, or IUSI (Impuesto Único Sobre Inmuebles).

Basis of calculation: cadastral value, not market value

IUSI is a national tax collected at the municipal level. It applies to any real estate property located on Guatemalan territory: houses, apartments, vacant land, commercial buildings, rented properties, etc. Companies, including foreign ones, are also liable on the properties they hold.

The base is the cadastral value, called the tax value or registered value, determined by the cadastral administration and municipalities. This value is generally lower than the market value, sometimes significantly (often between 50% and 80% of the actual purchase price, according to sources).

There is no local double taxation like “municipal tax + departmental tax” as in France: IUSI is the sole property tax, although some municipalities add small fees for services (waste collection, etc.).

Progressive rates: from 0.2‰ to 9‰

The IUSI rate is progressive by cadastral value brackets, expressed in thousandths (per mille):

Important: this is not a bracket system as in France, but a tier system. In other words, if the cadastral value exceeds GTQ 70,000, the 0.9% rate applies to the entire base, not a mix of 0.2%, 0.6%, and 0.9% by bracket.

This scale can be summarized as follows:

For a French owner of a high-end property (villa, city apartment, vacation home), you almost always fall into the last bracket, at a rate of 0.9%, since the cadastral value quickly exceeds GTQ 70,000 (a little over USD 9,000).

Tax levels: numerical examples

Estimates from the report converge: for “expatriate-type” properties, the annual IUSI burden remains relatively modest in absolute value, but not negligible for a rental investor.

Orders of magnitude have been calculated for properties valued in dollars:

The range is mainly due to variations in the cadastral value used by the municipality and differences in USD/GTQ conversion in the source examples. But the logic remains the same: at 0.9% of a “fake price” lower than the market, the Guatemalan property tax generally remains much lower than in France for comparable properties in tourist areas.

Frequency, payment and penalties

IUSI is normally paid quarterly (four installments per year), although annual payment is possible. Some municipalities offer a discount for early payment, sometimes up to 10% for full payment at the beginning of the year.

In case of late payment, a flat penalty of 20% of the tax due may be added, along with late payment interest. Eventually, prolonged default could theoretically lead to seizure of the property.

Specific exemptions and reductions

Guatemalan law (Decree 15-98, notably Article 12) provides for a number of exemptions, but they primarily concern:

Beyond these institutional cases, there are a few targeted reductions:

– temporary reduction for new constructions: 50% in the first year, 30% in the second, 15% in the third, after completion;

– 25% reduction for seniors aged 65 and over on their primary residence, subject to a cadastral value condition (less than GTQ 500,000);

– 30% reduction for people with disabilities on their primary residence, with no value cap, subject to a renewed medical certificate;

– 40% reduction for certain veterans of the internal conflict, within value limits.

For a French owner of a secondary residence or rental property, these benefits are rarely applicable unless the conditions of age, disability or special status are strictly met. There is no exemption related to nationality, expatriate status or being a foreign retiree.

Taxation of rental income in Guatemala

Rental investment is one of the main motivations for French people buying in Guatemala, whether for long-term (classic lease) or short-term rentals (furnished tourist accommodations). The taxation of rents depends on the person’s tax status in Guatemala (resident or non‑resident) and the chosen tax regime.

Territorial tax system: only Guatemalan-source income is taxable

Guatemala applies a territoriality principle: only income sourced in Guatemala is taxed there. Salaries, dividends, pensions, capital income, or real estate income received abroad are not included in the local tax base, even for a Guatemalan tax resident.

For a French person living in Guatemala, this means:

– rental income from their Guatemalan properties is taxable locally;

– their French income (salaries, pensions, dividends, rents in France) is not taxed in Guatemala.

Rates and base for non‑residents

The sources used indicate several formulas for taxing rents, reflecting the existence of different regimes depending on whether the taxpayer is resident, non‑resident, or according to the classification of income.

For non‑residents, several points emerge:

– a flat rate of 25% on Guatemalan-source income, net of allowed expenses, is mentioned;

– a specific scheme provides for rents a rate of 10% on 70% of the amount collected (i.e., an effective deduction of 7% of gross rent);

– more broadly, Guatemalan tax treats movable and immovable capital income (including rents) as capital income, taxed at 10% on a determined base (sometimes gross, sometimes after deduction).

In practice, for a non‑resident receiving rents, the most common scenario is a withholding at source by the Guatemalan paying agent. The exact rate and base depend on the contractual scheme and chosen regime, but the order of magnitude ranges between 7% and 25% of gross rent, depending on the application of deductions and allowances.

A key point: for non‑residents, the tax is normally withheld at source by a Guatemalan agent, who remits the amount to the tax authority (SAT) within 10 business days of the month following payment. A withholding certificate is given to the beneficiary. If, for any reason, no withholding has been made, the non‑resident must file a direct return in Guatemala.

Possible regimes for Guatemalan residents

For a French person who becomes a tax resident in Guatemala, the taxation of their Guatemalan rents follows the general rules applicable to residents:

Typically deductible are: management fees, maintenance work, insurance, IUSI, possible loan interest, etc. The exact regime depends on the tax option chosen (net regime or gross income regime with deduction).

Short-term rentals: VAT and SAT scrutiny

Short-term tourist rentals attract the attention of the SAT, as they are often poorly declared. Guatemalan VAT legislation is broad and considers certain short-term accommodation services as services subject to 12% VAT.

In practice, an owner operating a seasonal rental property must therefore plan for:

– 12% VAT charged on overnight stays, if the service falls within the scope of VAT;

– income tax on profits (depending on the chosen regime).

For a French person remotely managing a Guatemalan property through online platforms, it is highly recommended to use a local accountant to secure VAT and ISR declarations, especially if the activity volume is significant.

Capital gains tax in Guatemala: a simple nominal rate, calculations to master

Guatemalan capital gains tax on real estate appears very simple on the surface: a fixed rate of 10% is mentioned multiple times. But once you delve into the legal details, several nuances emerge:

– in some texts, an income tax (ISR) of 10% is provided for capital gains;

– in others, the ISR on gains may be 15% of the net gain or 5% of the sale price if the acquisition cost is not documented.

These divergences are explained by the existence of two main aspects: the specific regime for capital gains (with a 10% rate) and, in other cases, the treatment of transactions within the general ISR framework, with options of 5%/15%. The consolidated report, however, allows us to identify several robust rules for a French investor.

Principle: taxation of Guatemalan-source gains

Guatemala applies a tax on capital gains of Guatemalan source:

This logic is formalized, notably, in the Tax Update Law (Decree 10-2012). Article 89 defines the taxable base of capital gains and losses, and Article 92 sets the rate at 10% on gains.

If we stick to this rule, the basic calculation would be:

Taxable gain = Sale price – Deductible selling expenses (capped) – Acquisition cost

With a rate of 10% on this gain, and no tax at all if the result is zero or negative (sale at a loss).

Calculation details: acquisition, expenses and cap

For an individual not required to keep full accounting (the most common case for a French person selling their house or apartment), the acquisition cost used is simply the value shown in the purchase deed (escritura), possibly increased by a revalued amount if an official revaluation process has been carried out with payment of the revaluation tax (10% on the latent gain).

Deductible selling expenses include:

– commissions paid to the real estate agent;

– notary fees and registration costs;

– various administrative costs directly related to the sale.

However, the law provides a cap: the total deductible selling expenses cannot exceed 15% of the sale price. Beyond that, they no longer reduce the taxable base.

A simplified example illustrates this mechanism:

If selling expenses had been USD 30,000, only USD 22,500 (15% of USD 150,000) would have been used, and the taxable gain would have been higher.

When does the 15% / 5% ISR on capital option apply?

The report also refers to a regime where, when selling a property, the ISR can be:

– either 15% on the net gain (sale price – purchase price – justified works), if the taxpayer can document the acquisition cost;

– or 5% on the gross sale price, if the acquisition cost cannot be proven.

This regime corresponds to a logic of income tax applied to capital gains in certain cases, particularly when the seller falls under the general ISR regime. Most foreign sellers, who keep the purchase deed and proof of works, opt for the 15% option on the net gain, which is generally more favorable than 5% on gross.

However, the specific regulation on capital gains (10% on the gain) remains the reference in most doctrinal analyses. In practice, a French seller would be wise to be assisted by a local tax specialist to choose the applicable and most advantageous regime, as the interplay between general ISR and the specific capital gains regime is not always intuitive.

No exemption for primary residence

A major difference from France stands out: in Guatemala, there is no capital gains exemption for the sale of a primary residence, nor any non-taxable minimum threshold.

The only exemptions provided concern the occasional sale of personal movable property (excluding vehicles, boats, aircraft), which never includes real estate.

Payment deadline and responsibility

The capital gain is deemed realized on the date of signing the sale deed (escritura de compraventa). The seller must self-assess and remit the corresponding tax to the SAT within the first 10 days of the month following the transaction.

In a private sale, the buyer is not a tax collector: there is no withholding at source or automatic payment through the notary, as is the case in France where the notary deducts and remits the tax at signing. It is therefore up to the seller to take the initiative, otherwise penalties and interest may accrue.

This particularity has a concrete impact for a French person selling from abroad: they must coordinate with a Guatemalan lawyer or accountant to file the return and make payment on time, otherwise they risk non-compliance with the local tax authority.

Selling a property in Guatemala: transaction costs and commissions

In addition to the capital gain itself, a seller must bear a set of non-negligible transaction costs. According to the data collected, selling a property generally involves:

– real estate agency commissions;

– notary fees and registration costs for the sale deed;

– various administrative fees;

– capital gains tax (ISR or specific regime).

Agency commissions and professional fees

Agency commissions are around 5% to 6% of the sale price. For a property sold for USD 100,000, this represents:

Add to this notary fees and costs for the sale deed, generally in the same range as at purchase (0.75% to 1.5%), plus registration fees, certificates, etc.

Total costs: from 6% to 18% of the sale price

When all these charges are combined, the cost of sale before capital gains tax typically falls between 6% and 8% of the sale price (mainly agency commissions and legal fees).

– 6% of the sale price: case of minimal capital gain, professional fees negotiated to the lowest;

– 18% or more: case of a substantial capital gain, full agency commission, expensive notary and lawyer.

For a French investor, the economic equation of a resale must therefore include:

– the taxable base of the capital gain in Guatemala;

– the total exit cost (commissions + fees + taxes);

– and, crucially, the possible residual taxation in France on the same gain, due to the absence of a tax treaty.

Absence of a tax treaty between France and Guatemala: risks of double taxation

One of the most sensitive points of this issue is this: there is no bilateral tax treaty between France and Guatemala. Guatemala has not ratified any double taxation treaty with any country whatsoever.

General consequence: overlapping taxing rights

In the absence of a treaty, each state unilaterally applies its domestic law. On one side:

– Guatemala taxes the real estate capital gain of Guatemalan source at its rate (10%, or ISR 15%/5% depending on the scheme);

– property tax (IUSI) is due locally;

– rents of Guatemalan source are taxed in Guatemala under the rules seen above.

On the other side, France considers:

– that a French tax resident is taxable in France on all their worldwide income, including real estate income and capital gains realized abroad, unless otherwise stipulated by an international treaty;

– that in the absence of a treaty, foreign income and capital gains are in principle taxable in France, possibly with a tax credit equal to the foreign tax actually paid if the credit mechanism is provided by domestic regulations.

In other words, a French tax resident who realizes a capital gain on a property located in Guatemala may find themselves:

– taxed first in Guatemala (e.g., 10%);

– then taxed in France at the rate for real estate capital gains (19% + 17.2% social contributions, i.e., 36.2% total at full rate), without automatic cancellation of the tax already paid.

In practice, French law provides that in the absence of a treaty, a tax credit may be granted up to the amount of foreign tax paid, limited to the French tax due on the same income. But this mechanism is neither automatic nor perfectly symmetrical to that of treaties: it is necessary to refer to French rules on foreign-source income (form 2047, possible tax credit imputation, etc.) and, for a specific case, consult a tax advisor.

French taxation on foreign capital gains and rents

To understand the risk, we must briefly recall the main features of the French regime, applied in the absence of a treaty.

On real estate capital gains of individuals:

On foreign rental income (real estate):

– it must be declared in France by any French tax resident, via form 2047 for foreign-source income, then transferred to the main return 2042/2042C;

– in the absence of a double taxation treaty, they are, in principle, taxable in France, even if they have already borne tax in the source country.

In situations where French regulations provide for a tax credit equal to the foreign tax to avoid full double taxation, this credit only mitigates the tax burden, without always eliminating it. For example, if Guatemala levies 10% and France would calculate 36.2%, the French resident could, in the best case, receive a credit of 10%, but remain liable for the difference.

Article 164 C of the French General Tax Code: special case of French residents in Guatemala with a property in France

The report also reminds us of an important provision of French law, even though it concerns properties located in France: Article 164 C of the General Tax Code. This article targets persons who are not fiscally domiciled in France but who maintain a dwelling there.

In this case:

– if the taxpayer has no taxable income in France of a higher amount, the minimum income tax base is set at three times the rental value of that dwelling;

– this regime does not apply if the taxpayer can prove that they are subject, in their country of residence (e.g., Guatemala), to a tax on all their income at least equal to two-thirds of what they would pay in France on the same base;

– it also does not apply to certain French expatriates for professional reasons, under conditions.

A French person who moves to Guatemala, a country with no tax treaty with France and low taxation (notably with a territorial system), while keeping a home in France, therefore runs the risk of being taxed in France on a high notional base (3 times the rental value), even if their worldwide income is very low and lightly taxed in Guatemala. This element does not directly relate to Guatemalan real estate taxation, but illustrates how asset planning between the two countries can have powerful tax effects.

Practical management from France: declarations and forms

For a French person who remains a French tax resident and owns a property in Guatemala, several declaration obligations remain on the French side.

Declaration of Guatemalan rental income

Rents received from a property located in Guatemala must, in principle, be reported on:

– form 2047, section “foreign-source income“;

– then transferred to the general return 2042 (and 2042 C as applicable), according to their nature (real estate income).

Declaration of Guatemalan real estate capital gains

In the event of a sale of a Guatemalan property generating a capital gain:

In all cases, the investor faces a complex mechanism where the key is to coordinate the treatment of the capital gain in both countries.

Conclusion: an attractive environment but requiring dual expertise

From a strictly Guatemalan perspective, real estate taxation is characterized by:

But the complete absence of a tax treaty with France changes the game for a French person who remains a French tax resident or plans to return. This gap creates a risk of double taxation on:

– rental income (taxed in Guatemala as Guatemalan-source income, then in France as worldwide income);

– real estate capital gains (taxed in Guatemala, then potentially at 36.2% gross in France, subject to holding period allowances).

It can also interact with Article 164 C of the French General Tax Code for French residents in Guatemala who keep a home in France, subjecting them to a minimum tax on a notional base of three times the rental value.

For a French investor, the asset strategy around a Guatemalan property cannot therefore be thought of solely in terms of local taxation, however attractive it may be. It must be designed holistically, integrating:

– their status as a French resident or non‑resident;

– the prospect of returning to France or not;

– the situation of their other real estate assets (in France or elsewhere);

– and the possibility of documenting all costs precisely (acquisition, works, selling expenses) to optimize the calculation base for capital gains in both countries.

Joint support from a Guatemalan tax professional and a French tax advisor therefore appears essential to turn a real estate purchase in Guatemala into a real asset opportunity, rather than an unexpected tax trap.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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