With its rich history, stunning landscapes, and affordable cost of living, Guatemala is becoming an increasingly popular destination for expats seeking a unique lifestyle in Central America.
In this guide, we’ll walk you through everything you need to know about relocating to Guatemala from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Guatemala follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you are present in Guatemala on more than 182 days during the tax year.
if you have a fixed place of business in Guatemala during the tax year unless you have tax residency overseas.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in the Guatemala, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Guatemala does not have any double taxation agreements signed.
