On August 28, 2026, Decree No. 18-2026 was published in the Diario de Centro América, introducing amendments to the Real Estate Tax (IUSI) Law, the Stamp Tax and Special Stamped Paper for Protocols Law, and the Income Tax regime applicable to certain real estate transactions.
The reforms modify the tax treatment of real estate in Guatemala, including new rates for commercial-use properties, the elimination of the IUSI for residential properties, changes to the allocation of certain tax revenues, and a new exemption related to capital gains arising from certain real estate disposals.
New IUSI rates for commercial-use properties
The decree modifies the IUSI rates applicable to properties used for commercial activities. Under the new scale, commercial-use properties will be subject to the following rates:
- From Q0 to Q500,000: 3 per thousand.
- From Q500,000.01 to Q1,000,000: 6 per thousand.
- From Q1,000,000.01 and above: 9 per thousand.
Properties used for housing, residential purposes, or mixed-use purposes will receive different treatment and will be subject to a rate of zero per thousand, according to the classification established in the reform.
This change may have a direct impact on companies that own commercial premises, offices, distribution centers, industrial facilities, and other real estate assets used for business activities.
Changes to the allocation of Stamp Tax revenue related to real estate transactions
The reform adds Article 43 Bis to the Law on Stamp Tax and Special Stamped Paper for Protocols.
The new provision establishes a mechanism for allocating revenue generated from certain acts and agreements involving real estate, including transactions such as sales, adjudications, urban development, subdivision, and construction.
The funds must be transferred to the corresponding municipalities based on the geographic location of the property, as part of efforts to strengthen municipal revenues.
Likewise, the Ministry of Public Finance and the Superintendency of Tax Administration must make adjustments to their systems, controls, and mechanisms for transferring these funds.
Capital gains exemption for certain real estate sales
The reform establishes an exemption for capital gains derived from the sale of real estate located within Guatemala.
However, this exemption does not generally apply to all transactions. The provision establishes limitations for:
- Legal entities.
- Trusts.
- Undivided estates.
- Taxpayers subject to certain business tax regimes.
- Individuals or entities engaged in economic activities related to the purchase and sale, subdivision, urban development, or construction of real estate.
Each real estate transaction should be analyzed individually to determine whether the resulting gain may qualify for the exemption or remains subject to the ordinary tax treatment.
