Taxes & Law
SAT: 12% VAT, individual ISR (5%/7%) and the territorial principle — with sources.
Updated: November 2026
Tax system – overview
- Authority: SAT.
- Territorial principle: generally only Guatemalan-source income.
- Tourists without local income usually file no ongoing ISR return — status and activity matter.
- Double tax: depends on home country.
VAT (IVA)
Per the SAT portal: general IVA 12% on goods and services, included in the price (Decree 27-92). Exports and certain exemptions may be 0%/exempt. Small taxpayer: simplified rate on gross sales (often 5%).
Individual ISR
Employment income: per art. 73, 5% on the first Q300,000 of annual taxable income; above that a fixed Q15,000 plus 7% on the excess. Personal deductions (e.g. often Q48,000) reduce the base.
- Trade/professional activity: often taxed like companies (general or simplified 5%/7% regimes —).
- Capital income: specific withholding rates.
- Non-residents: withholding on Guatemalan-source income.
Practice for newcomers
- Tourist status ≠ tax residence ≠ work permit.
- With local work/business: clarify NIT and SAT registration.
- IVA in daily life; ISR only with taxable status/income.
Sources
Disclaimer: This page is for general guidance only and is not legal, tax or immigration advice. Rules and prices change — verify with official sources.