The Congress of the Republic approved Decree 6-2026, repealing the Law on the Tax on Inheritances, Legacies, and Donations. This measure eliminates the obligation to pay a tax on assets received as inheritance following the death of a family member.
The reform is part of a broader tax simplification policy aimed at facilitating compliance with tax obligations and reducing administrative burdens for both taxpayers and authorities.
What changes in practice?
For families and individuals:
- Inheriting assets will no longer trigger this specific tax.
- Fewer procedures and lower costs in probate and succession processes.
- Greater legal and financial certainty in estate planning.
For companies and family business groups:
- Facilitates intergenerational wealth transfers.
- Reduces tax friction in family reorganizations and succession processes.
- Makes estate and corporate planning in Guatemala more attractive.
For notaries and succession proceedings:
Simplifies procedures related to appraisals and tax payments associated with inheritances.
Why is this relevant for business and high-net-worth clients?
Beyond being a technical change, this repeal carries strategic implications:
- Improves the business climate: fewer distortive tax burdens and greater predictability.
- Facilitates estate planning: family businesses can structure succession with greater clarity.
- Reduces legal and administrative risks and costs in inheritance or asset transfer processes.
In addition, the new framework supports the optimization of family corporate structures, as the transfer of equity interests between generations can now be carried out with fewer tax frictions, making these processes more agile and efficient. This also has a positive impact on internal reorganizations and mergers and acquisitions (M&A) within business groups, where donations or asset transfers now face a more favorable environment.
Next steps
- Review your estate and succession planning strategy.
- Assess whether your current structures remain optimal.
- Analyze potential adjustments to family protocols or wills.
- Consult legal and tax advisors to align your strategy with the new legal framework.
However, although this specific tax has been eliminated, other legal, registry, and formal obligations remain in force and must be properly managed.
