Can Americans buy property in Guatemala?

Authored by the expert who managed and guided the team behind the Guatemala Property Pack

Everything you need to know before buying real estate is included in our Guatemala Property Pack

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Guatemala, Mexico, Colombia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Guatemala. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinvestor, we explore the Guatemalan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Guatemala City, Antigua, and around Lake Atitlán. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy property in Guatemala without being residents?

Americans can legally purchase property in Guatemala without any residency or citizenship requirements.

The Guatemalan legal system allows foreigners, including U.S. citizens, to own real estate with the same rights as local citizens. No minimum investment amount is required for property ownership, and there are no restrictions on the type of residential property Americans can purchase.

Property ownership rights for Americans include full title ownership, the right to sell, rent, or transfer the property, and the ability to pass property to heirs through inheritance. The legal framework protects foreign property owners under the same laws that govern Guatemalan citizens.

Americans can purchase condominiums, houses, apartments, and land parcels in most areas of Guatemala. The only requirement is following the standard legal procedures for property transfer, which involve notarization and registration with the Public Registry.

It's something we develop in our Guatemala property pack.

Are there restrictions for Americans that don't apply to Guatemalan citizens?

Americans face the same restrictions as all other foreign nationals, but no additional limitations specific to U.S. citizens.

The primary restriction affects all foreigners equally: direct ownership of land within 3 kilometers of international borders or within 50 kilometers of coastlines is prohibited. This restriction applies to Americans, Europeans, and other foreign nationals but not to Guatemalan citizens.

However, Americans can circumvent coastal and border restrictions by establishing a Guatemalan corporation to hold the property. This corporate structure allows effective control while complying with ownership laws. The corporation must have at least one Guatemalan director, though Americans can maintain majority ownership of shares.

Americans have equal access to financing, legal representation, and property insurance compared to other foreign buyers. No special permits or additional documentation requirements apply specifically to U.S. citizens beyond standard foreigner procedures.

What visa or residency status do Americans need to purchase property?

No visa or residency permit is required specifically for purchasing property in Guatemala.

Americans can complete property transactions on a tourist visa, which allows stays up to 90 days (extendable to 180 days). The property purchase process typically takes 30-60 days, well within tourist visa limits.

However, Americans planning extended stays or permanent relocation should consider residency options. Temporary residency can be obtained through various pathways including retirement, family connections, or investment. The investor residency program requires a minimum investment of $100,000 in economically productive activities, which can include rental properties or real estate development.

Permanent residency becomes available after maintaining temporary residency for approximately two years. This status provides greater long-term security and can simplify banking, financing, and business operations.

Property ownership itself doesn't automatically qualify for residency, but substantial real estate investments can support investor visa applications when structured as business ventures.

Do Americans need to be physically present to complete property purchases?

Physical presence is not required for Americans to purchase property in Guatemala.

The initial phases of property searching, price negotiation, and preliminary agreements can be completed entirely remotely through video calls, email communications, and digital document exchange. Many Americans successfully identify and secure properties before visiting Guatemala.

For final transaction steps requiring notarization and signature, Americans can appoint a local representative through a power of attorney. This legal document must be prepared by a Guatemalan lawyer and allows the appointed agent to sign documents and complete transactions on behalf of the buyer.

However, many buyers prefer to be present for the final closing to personally verify property conditions and meet with legal representatives. The closing process typically requires 1-3 days in Guatemala, making it manageable for buyers traveling from the United States.

Remote purchases work best when working with established law firms and real estate professionals who can provide virtual property tours and detailed documentation.

Is hiring local legal professionals mandatory for Americans?

Hiring a local lawyer and notary public is essential for American property buyers in Guatemala.

Guatemalan law requires all real estate transactions to be processed through a licensed notary public (notario público), who serves a different role than notaries in the United States. Guatemalan notaries are qualified lawyers authorized to draft legal documents, verify identities, and register property transfers with government authorities.

The lawyer conducts due diligence including title searches, verification of property boundaries, confirmation of tax payments, and review of any liens or encumbrances. They also ensure compliance with foreign ownership laws and draft the sales agreement protecting the buyer's interests.

The notary public prepares the public deed (escritura pública), oversees the signing ceremony, collects transfer taxes, and registers the new title with the Public Registry. This registration officially transfers ownership and provides legal protection.

Legal fees typically range from $2,000 to $5,000 depending on property value and complexity. While this represents an additional cost, professional legal assistance prevents costly mistakes and ensures valid ownership transfer.

What are the exact steps for Americans to buy property in Guatemala?

The property purchase process for Americans follows seven distinct steps from offer to ownership.

Step	Description	Timeline
1. Property Selection	Choose property with agent or direct from owner	1-4 weeks
2. Sales Agreement	Draft purchase agreement with legal counsel	3-5 days
3. Due Diligence	Title search, boundary verification, lien check	1-2 weeks
4. Document Preparation	Notary prepares public deed and transfer documents	1 week
5. Signing & Payment	Execute deed before notary, transfer funds	1 day
6. Registration	File documents with Public Registry	2-4 weeks
7. Title Delivery	Receive official registered title deed	1-2 weeks

Required documents include a valid U.S. passport, proof of funds or financing pre-approval, power of attorney if not present for closing, and any documents translated to Spanish by certified translators.

The total process typically takes 6-10 weeks from offer acceptance to registered ownership, though simple transactions can be completed faster.

Can Americans get mortgages in Guatemala?

Americans can obtain mortgages from Guatemalan banks, though with more restrictive terms than local citizens receive.

As of June 2025, average mortgage interest rates for residential properties are approximately 6% annually. However, foreign borrowers often face higher rates, typically 7-9%, due to perceived higher risk and limited local credit history.

Down payment requirements for Americans range from 30% to 50% of the property value, significantly higher than the 10-20% often required for Guatemalan citizens. Loan terms typically extend 15-20 years, shorter than the 25-30 years available to locals.

Banks require extensive documentation including proof of U.S. income, employment verification, credit reports, bank statements, and sometimes Guatemalan income sources or local guarantors. The approval process takes 60-90 days and requires significant paperwork translation and notarization.

Alternative financing options include seller financing, where property owners act as lenders, and private lending from investment groups specializing in Central American real estate.

What are the tax implications for Americans buying property in Guatemala?

Americans face multiple tax obligations both in Guatemala and the United States when owning property.

Purchase taxes in Guatemala include property transfer tax (typically 3% of sale price), stamp tax (0.5%), and notary fees (1-2% of property value). Registration fees and municipal taxes add approximately $500-1,500 to closing costs.

Rental income from Guatemalan property is subject to local income tax at rates of 25-35% for non-resident foreigners. This rate applies to gross rental income after deducting allowable expenses like property management, maintenance, and depreciation.

Capital gains tax applies when selling property, calculated at 10% of the profit (sale price minus purchase price and improvements). Americans can often reduce capital gains through proper documentation of improvement costs and selling expenses.

U.S. tax obligations continue regardless of property location. Americans must report worldwide income, including Guatemalan rental income, to the IRS. The Foreign Tax Credit allows offsetting Guatemalan taxes paid against U.S. tax liability, reducing double taxation.

Annual property taxes in Guatemala are relatively low, typically 0.2-0.9% of assessed property value, significantly less than most U.S. locations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Guatemala versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas in Guatemala are most popular with American expats?

Three primary regions attract the majority of American expats and property investors in Guatemala.

Antigua Guatemala ranks as the top choice for Americans seeking colonial charm and established expat communities. The UNESCO World Heritage city offers excellent restaurants, cultural activities, and English-speaking services. Property prices range from $150,000 for modest homes to $500,000+ for luxury colonial properties.

Lake Atitlán attracts Americans seeking natural beauty and lower living costs. Towns like Panajachel, San Marcos la Laguna, and Santiago Atitlán offer lakefront properties with stunning volcanic views. The area provides strong rental income potential from tourism while maintaining a relaxed lifestyle.

Guatemala City appeals to Americans requiring urban amenities and business opportunities. Zones 14 and 15 offer modern apartments and condominiums with security, shopping, and professional services. These areas provide the most developed infrastructure and international business connections.

Coastal areas receive less American interest due to ownership restrictions, climate challenges, and limited infrastructure development. The Pacific coast offers investment opportunities but requires corporate ownership structures.

It's something we develop in our Guatemala property pack.

Which regions offer the best rental yields and appreciation potential?

Lake Atitlán provides the highest rental yields in Guatemala, reaching up to 8.4% annually for well-positioned vacation rental properties.

The lake region benefits from consistent international tourism, particularly around Panajachel and San Marcos la Laguna. Short-term vacation rentals generate strong returns due to the area's natural beauty and adventure tourism activities. Properties with lake views command premium rental rates throughout the year.

Antigua offers stable rental income from both tourists and expats, with annual yields typically ranging from 5-7%. The city's UNESCO status ensures continued tourism demand, while the established expat community provides long-term rental opportunities.

Guatemala City presents steady appreciation potential, particularly near new infrastructure projects and in established zones like 14 and 15. Rental yields average 4-6% but offer more stable, long-term tenants from the professional and business communities.

Emerging areas like Retalhuleu show appreciation potential due to industrial development and improved highway connections to major cities. These regions offer lower entry costs but require longer investment horizons.

What do properties cost in different parts of Guatemala in 2025?

Property prices vary significantly across Guatemala's major markets as of mid-2025.

Location	Property Type	Price Range (USD)
Antigua	Colonial homes	$150,000 - $500,000+
Antigua	Modern condos	$120,000 - $300,000
Lake Atitlán	Lakefront villas	$200,000 - $400,000
Lake Atitlán	Standard homes	$100,000 - $250,000
Guatemala City (Zones 14-15)	Modern apartments	$100,000 - $300,000
Guatemala City (Zones 14-15)	Luxury penthouses	$300,000 - $600,000+
Pacific Coast	Beach properties	$80,000 - $250,000

Antigua commands premium prices due to its colonial architecture, tourism appeal, and restricted development within the historic center. Properties requiring restoration can be found at lower prices but require significant renovation investments.

Lake Atitlán prices reflect the area's natural beauty and tourism potential, with lakefront properties commanding significant premiums over hillside locations. The market has seen steady appreciation as international recognition grows.

Guatemala City offers the most variety, from affordable apartments in developing zones to luxury high-rises in premium areas. New construction projects continue expanding housing options across price ranges.

What common mistakes do Americans make when buying Guatemalan property?

The most costly mistake Americans make is attempting to navigate the purchase process without qualified local legal representation.

1. **Skipping professional legal help** - Americans often underestimate the complexity of Guatemalan real estate law and attempt to save money on legal fees, resulting in invalid contracts, ownership disputes, or financial losses that far exceed legal costs.2. **Inadequate title research** - Failing to conduct thorough title searches can reveal later ownership claims, unpaid taxes, or property liens that become the new owner's responsibility.3. **Ignoring border and coastal restrictions** - Americans sometimes purchase restricted properties without understanding limitations, leading to ownership challenges or forced sales.4. **Underestimating total costs** - Beyond purchase price, Americans often fail to budget for legal fees, taxes, ongoing maintenance, property management, and currency exchange fluctuations.5. **Cultural misunderstandings in negotiations** - Direct negotiation styles common in the U.S. can offend Guatemalan sellers, damaging relationships and deal prospects without local intermediaries.6. **Inadequate property inspections** - Americans may skip detailed structural, electrical, and plumbing inspections that reveal costly repair needs after purchase.7. **Poor location research** - Buying based solely on photos or short visits without understanding neighborhood dynamics, infrastructure quality, or future development plans.

It's something we develop in our Guatemala property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. TheLatinvestor - Guatemala US Citizen Property Ownership
2. BizLatinHub - Buying Property Guatemala
3. Living in Guatemala - Real Estate Investment Guide
4. TheLatinvestor - Guatemala Property Purchase Agreement
5. TheLatinvestor - Guatemala Real Estate Market
6. Global Property Guide - Guatemala Rental Income Tax
7. TheLatinvestor - Guatemala Buy Property
8. TheLatinvestor - Antigua Real Estate Trends