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Everything you need to know before buying real estate is included in our Guatemala Property Pack
Buying an apartment in Guatemala City comes with several tax obligations that every investor needs to understand before making a purchase decision.
Property taxes in Guatemala City are calculated at 0.90% annually on the cadastral value, plus one-time transfer taxes of 3% for used properties, and ongoing maintenance fees that typically range from Q5,500 to Q66,000 per year depending on the building quality.
If you want to go deeper, you can check our pack of documents related to the real estate market in Guatemala, based on reliable facts and data, not opinions or rumors.
For a typical Q1,109,900 apartment in Guatemala City, you'll pay Q9,989 annually in property tax, Q33,297 in one-time transfer tax, and Q66,000 yearly in maintenance fees.
The total first-year cost of ownership reaches Q122,050, which includes all taxes, fees, and building maintenance expenses.
| Tax/Fee Type | Rate | Annual Amount (Q) |
|---|---|---|
| Property Tax | 0.90% of cadastral value | 9,989 |
| Transfer Tax (used property) | 3% of purchase price | 33,297 (one-time) |
| Registration Fee | 0.15% of purchase price | 1,665 (one-time) |
| Legal Fee | 1% of purchase price | 11,099 (one-time) |
| Maintenance Fees | Q5,500/month average | 66,000 |
| Rental Income Tax | 25% of net income | 16,500 (if rented) |
| Capital Gains Tax | 10% of net gain | Variable on sale |
What's the purchase price range for apartments in Guatemala City?
As of September 2025, apartment prices in Guatemala City average Q11,099 per square meter for properties in the city center.
A standard 100-square-meter apartment in Guatemala City costs approximately Q1,109,900, based on current market rates in the central zones of the capital.
Prices vary significantly by location within Guatemala City, with Zone 10 and Zone 14 commanding premium rates, while outer zones offer more affordable options starting from Q8,000 per square meter.
New construction projects typically price 15-20% higher than resale properties, reflecting modern amenities and updated building standards in the Guatemala City market.
What's the official property tax rate in Guatemala City and how often do you pay it?
Guatemala City applies a property tax rate of 0.90% annually on the cadastral value for properties valued above Q70,000.
Property taxes are paid annually, with the full amount due each year to the municipal authorities of Guatemala City.
Properties valued below Q70,000 are subject to lower tax rates, but most apartments purchased by foreign investors fall into the higher bracket due to Guatemala City's current market prices.
The tax payment deadline typically falls in the first quarter of each year, and late payments incur penalties and interest charges.
How is property value assessed for tax purposes in Guatemala City?
Property taxes in Guatemala City are calculated based on the cadastral value, which is the official government assessment of your property's worth.
The cadastral value often differs from the market purchase price, typically running 10-30% lower than actual market rates for established properties in Guatemala City.
For newly constructed apartments, the cadastral value may closely match the purchase price, as recent sales data influences the assessment process.
Guatemala City conducts periodic reassessments of cadastral values, usually every 3-5 years, to account for market changes and infrastructure improvements in different zones.
Property owners can appeal cadastral valuations if they believe the assessment significantly exceeds fair market value, though the process requires proper documentation and legal representation.
What's the annual property tax amount for a typical Guatemala City apartment?
For a Q1,109,900 apartment in Guatemala City, the annual property tax amounts to Q9,989 based on the 0.90% rate applied to the cadastral value.
| Property Value (Q) | Tax Rate | Annual Tax Amount (Q) |
|---|---|---|
| 800,000 | 0.90% | 7,200 |
| 1,000,000 | 0.90% | 9,000 |
| 1,109,900 | 0.90% | 9,989 |
| 1,500,000 | 0.90% | 13,500 |
| 2,000,000 | 0.90% | 18,000 |
Are there municipal fees or surcharges added to property tax in Guatemala City?
Guatemala City does not impose significant municipal surcharges on top of the standard property tax for residential apartments.
Standard public service fees for waste removal and street maintenance are included in the base property tax calculation, avoiding double taxation for apartment owners.
Some buildings may have special assessment fees for infrastructure improvements, but these are property-specific rather than city-wide charges.
Unlike many other Latin American cities, Guatemala City maintains a relatively straightforward tax structure without multiple layers of municipal fees for residential properties.
It's something we develop in our Guatemala property pack.
What's the transfer tax when buying an apartment in Guatemala City?
Transfer tax in Guatemala City varies significantly between used and new properties, creating important cost considerations for buyers.
For second-hand apartments, you pay 3% of the purchase price as stamp duty, which equals Q33,297 for a Q1,109,900 apartment.
New construction purchases are subject to 12% VAT instead of the 3% stamp duty, making new apartments substantially more expensive from a tax perspective.
The transfer tax is a one-time payment due at the time of purchase and cannot be financed as part of the mortgage in Guatemala City.
Additional one-time fees include a 0.15% registration fee (Q1,665) and legal fees of approximately 1% (Q11,099) for a standard apartment transaction.
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What are the annual maintenance and condo fees for Guatemala City apartments?
Maintenance fees for Guatemala City apartments typically range from Q1,000 to Q5,500 per month, depending on building quality and amenities.
A standard apartment building with basic amenities charges approximately Q5,500 monthly, totaling Q66,000 annually for maintenance and common area upkeep.
Luxury buildings with gyms, pools, and 24-hour security can charge Q8,000-Q12,000 monthly, while older buildings without elevators may charge as little as Q1,000-Q2,500 monthly.
These fees cover building insurance, common area maintenance, security services, and utility costs for shared spaces in Guatemala City apartment complexes.
Maintenance fees in Guatemala City are generally lower than comparable buildings in other Central American capitals, making apartment ownership more affordable long-term.
What's the total yearly tax cost including all fees and levies?
The total yearly tax cost for a Guatemala City apartment includes property tax and maintenance fees, but excludes one-time purchase costs.
For a Q1,109,900 apartment, the annual ongoing costs total Q75,989, combining Q9,989 in property tax and Q66,000 in maintenance fees.
Guatemala City does not impose additional special levies or recurring municipal surcharges beyond the standard property tax rate.
These costs remain relatively stable year-over-year, with maintenance fees subject to annual increases of 3-5% based on inflation and building improvement needs.
What's the rental income tax rate if you rent out your Guatemala City apartment?
Rental income from Guatemala City apartments is taxed at a flat rate of 25% on net rental income after allowable deductions.
If you rent a Q1,109,900 apartment for Q5,500 monthly (Q66,000 annually), the estimated tax on net rental income is approximately Q16,500 per year.
Allowable deductions include property management fees, maintenance costs, property taxes, and depreciation, which can significantly reduce the taxable rental income.
Foreign property owners must register with Guatemala's tax authority (SAT) and file annual returns reporting rental income from Guatemala City properties.
Failure to report rental income can result in penalties of 100% of the unpaid tax, plus interest charges and potential legal complications for foreign investors.
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.
What are the capital gains taxes when selling your Guatemala City apartment?
Capital gains tax in Guatemala is levied at a flat rate of 10% on the net gain from selling real estate properties.
If you sell your Q1,109,900 apartment for Q1,400,000, the net gain is Q290,100, resulting in a capital gains tax of Q29,010.
Net gain calculations allow deductions for acquisition costs, legal fees, property improvements, and selling expenses, which can reduce the taxable amount.
Properties held for longer periods do not benefit from reduced capital gains rates, as Guatemala maintains the flat 10% rate regardless of holding duration.
Foreign sellers must ensure proper tax compliance before transferring title, as unpaid capital gains taxes can block the sale completion in Guatemala City.
What's the total cost of ownership for the first year in Guatemala City?
The first year of apartment ownership in Guatemala City includes both one-time purchase costs and recurring annual expenses.
| Cost Category | Amount (Q) | Type |
|---|---|---|
| Property Tax | 9,989 | Annual |
| Transfer Tax (Stamp Duty) | 33,297 | One-time |
| Registration Fee | 1,665 | One-time |
| Legal Fee | 11,099 | One-time |
| Maintenance Fees | 66,000 | Annual |
| Total First Year | 122,050 | Combined |
How much will you pay in taxes over 5 or 10 years of ownership?
Long-term ownership costs in Guatemala City include recurring annual expenses plus the initial one-time purchase fees.
Over 5 years, total taxes and fees reach Q426,006, assuming current rates remain stable and no major building improvements requiring special assessments.
A 10-year ownership period results in total costs of Q805,952, demonstrating the significant impact of maintenance fees on long-term ownership expenses.
These projections assume 3% annual increases in maintenance fees and stable property tax rates, which have remained consistent in Guatemala City over the past decade.
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.
Understanding the tax implications of apartment ownership in Guatemala City is crucial for making informed investment decisions.
The combination of moderate property taxes, reasonable maintenance fees, and straightforward transfer processes makes Guatemala City an attractive option for real estate investors seeking transparency in cost structures.
It's something we develop in our Guatemala property pack.
Sources
- Guatemala Price Forecasts - The LatinVestor
- Property Investment in Guatemala City - Numbeo
- Guatemala Taxes and Costs - Global Property Guide
- Guatemala Tax Overview - Lloyds Bank Trade
- Buying Land in Guatemala - The LatinVestor
- Buying Property in Guatemala - Biz Latin Hub
- Moving to Guatemala Property Guide - The LatinVestor
- Americans Buying Property in Guatemala - The LatinVestor
- Guatemala Buying Guide - Global Property Guide
- RE/MAX Guatemala Property Listings