On August 28, 2026, Decree No. 18-2026 was published in the Official Gazette (Diario de Centro América), introducing significant tax reforms, particularly for real estate owners and real estate transactions.
Key changes include:
- Zero IUSI rate for residential property: real estate used for housing, residential, or mixed-use purposes will be subject to a zero per thousand rate, regardless of its registered value.
- IUSI on commercial properties and other uses: the existing rates of 3, 6, and 9 per thousand remain applicable, depending on the registered value of the property.
- New Income Tax capital gains exemption: a new exemption is introduced for certain individuals deriving income from real estate located in Guatemala, subject to compliance with the conditions established by the reform.
- Real estate transfers and Stamp Tax: the reform strengthens collection, oversight, and information-sharing mechanisms among municipalities, the Guatemalan Tax Administration (SAT), and the Ministry of Public Finance in connection with second and subsequent sales, exchanges, and other transfers of real estate.
When do the changes become effective?
- IUSI: the amendments will become effective on November 26, 2026.
- Income Tax: the new exemption will apply as of January 1, 2027.
- Stamp Tax: the new provisions will apply as of January 1, 2027.
Why is this relevant?
The amendment may create significant tax efficiencies in certain cases, while also strengthening oversight mechanisms applicable to real estate transactions. It is important for property owners, landlords, developers, investors, and companies holding real estate assets to review the classification and use of their properties, the applicability of the new exemptions, and the tax treatment of future transactions
BLP’s team is available to assess the impact of these reforms and the opportunities that may arise from their implementation.