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Property ownership in Guatemala City comes with specific tax obligations that every investor needs to understand before making a purchase decision. The main annual property tax, known as IUSI (Impuesto Único Sobre Inmuebles), applies to all real estate at progressive rates based on assessed values, while additional transaction taxes and municipal fees add to the total cost of ownership.
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Guatemala City property owners pay IUSI annual tax at progressive rates from 0.2% to 0.9% on assessed values, plus municipal fees for services like trash collection.
Property buyers face either 3% transfer stamp tax on resales or 12% VAT on new builds, making transaction costs significantly different between property types.
| Tax/Fee Type | Rate/Amount | Charged By |
|---|---|---|
| IUSI (Annual Property Tax) | 0.2%-0.9% progressive on assessed value | Municipal Government |
| Transfer Stamp Tax (Resale) | 3% of sale price | National Government |
| VAT (New Property) | 12% of sale price | National Government |
| Trash Collection Fee | Q240-Q480 annually | Municipal Government |
| Notary/Legal Fees | ~1% of property value | Private Services |
What taxes and mandatory city fees apply to owning property in Guatemala City in 2025, and which authority charges each one?
Property owners in Guatemala City face several mandatory taxes and fees collected by different government levels.
The municipal government of Guatemala City collects the primary annual property tax called IUSI (Impuesto Único Sobre Inmuebles), which generates most revenue for local services and infrastructure. Municipal authorities also charge trash collection fees, typically ranging from Q240 to Q480 annually for residential properties, billed either quarterly or as part of annual property tax statements.
The national government manages transaction-related taxes through different agencies. When buying resale properties, buyers pay a 3% transfer stamp tax to the national tax authority (SAT). For new construction purchases, buyers pay 12% VAT instead of the transfer stamp tax. Both scenarios require notary and legal fees, usually around 1% of the property value, plus minor registry fees charged by the national property registry.
Public lighting fees are often included in electricity bills rather than charged separately, while fire services typically don't generate separate charges in Guatemala City. Water and sewage connections may require one-time hookup fees paid to municipal utilities, but these aren't recurring annual charges.
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What is the exact 2025 IUSI property-tax rate table, and is it applied to the cadastral value or the purchase price?
IUSI rates apply progressively to the cadastral (assessed) value of the property, not the purchase price you paid.
The 2025 IUSI rate structure uses four progressive brackets. Properties with cadastral values up to Q2,000 are completely exempt from IUSI. Values from Q2,001 to Q20,000 are taxed at Q2.00 per Q1,000 of value (0.2% annual rate). The next bracket from Q20,001 to Q70,000 faces Q6.00 per Q1,000 (0.6% annually). All cadastral value above Q70,000 is taxed at Q9.00 per Q1,000 (0.9% annually).
The progressive system means each bracket is taxed at its specific rate, similar to income tax brackets. A property with Q100,000 cadastral value pays nothing on the first Q2,000, then 0.2% on the next Q18,000, then 0.6% on the next Q50,000, and finally 0.9% on the remaining Q30,000.
Cadastral values are set by municipal authorities or the national Directorate of Cadastre and Appraisal (DICABI) and often differ significantly from market purchase prices. These assessed values typically reflect construction costs, land values, and municipal appraisal methods rather than current market conditions.
How is the cadastral value determined and updated in 2025, and where can I check my current number?
Municipal authorities in Guatemala City set cadastral values, sometimes with support from the national Directorate of Cadastre and Appraisal when local capacity is limited.
Cadastral values are established during initial property registration and updated when specific events occur. Property transfers, major renovations, new construction, or municipal reappraisal programs trigger value updates. Property owners can also request reassessments if they believe their value is incorrect, though this might result in higher or lower assessments.
Guatemala City doesn't follow a fixed schedule for mass reappraisals, but municipal inspectors may periodically review properties based on market data, construction permits, or neighborhood development patterns. Significant improvements like adding floors, swimming pools, or major renovations typically trigger reassessment during permit processes.
To check your current cadastral value, visit the Guatemala City municipal offices with your property folio number (número de folio real) and request your cadastral statement. If municipal records aren't available, contact DICABI directly. Some municipalities are developing online portals for property information, but in-person visits remain the most reliable method as of September 2025.
Property owners should keep copies of their most recent cadastral statements and IUSI payment receipts, as these documents show your official assessed value and payment history.
Can you show sample IUSI calculations for typical homes at Q300,000, Q1,000,000, and Q5,000,000 assessed values?
IUSI calculations follow the progressive bracket system, applying each rate to the corresponding value range.
| Cadastral Value | Bracket Calculation | Annual IUSI |
|---|---|---|
| Q300,000 | Q0 (first Q2,000) + Q36 (next Q18,000 × 0.2%) + Q300 (next Q50,000 × 0.6%) + Q2,070 (remaining Q230,000 × 0.9%) | Q2,406 |
| Q1,000,000 | Q0 (first Q2,000) + Q36 (next Q18,000 × 0.2%) + Q300 (next Q50,000 × 0.6%) + Q8,370 (remaining Q930,000 × 0.9%) | Q8,706 |
| Q5,000,000 | Q0 (first Q2,000) + Q36 (next Q18,000 × 0.2%) + Q300 (next Q50,000 × 0.6%) + Q44,370 (remaining Q4,930,000 × 0.9%) | Q44,706 |
For the Q300,000 property, the effective tax rate is 0.8% of total value. The Q1,000,000 property pays an effective rate of 0.87%, while the Q5,000,000 property reaches an effective rate of 0.89%, approaching but never quite reaching the top marginal rate of 0.9%.
These calculations assume single-folio properties. Properties with separate folios for parking spaces, storage units, or other amenities require individual calculations for each folio, then summing the results.
For condos or apartments, how is IUSI computed when the unit, parking space, and storage have separate folios?
Condominium properties often have multiple folios with separate cadastral values for the main unit, parking spaces, and storage areas.
Each folio receives its own IUSI calculation using the progressive bracket system, then all amounts are summed for the total annual tax bill. For example, a condo unit valued at Q600,000, parking space at Q50,000, and storage at Q10,000 would generate three separate calculations.
The Q600,000 unit calculation: Q0 (exempt) + Q36 (Q18,000 × 0.2%) + Q300 (Q50,000 × 0.6%) + Q4,770 (Q530,000 × 0.9%) = Q5,106. The Q50,000 parking space: Q0 + Q36 + Q180 (Q30,000 × 0.6%) = Q216. The Q10,000 storage: Q0 + Q16 (Q8,000 × 0.2%) = Q16.
The total annual IUSI for this three-folio property would be Q5,106 + Q216 + Q16 = Q5,338. Property owners receive separate tax bills for each folio but can usually pay them together at municipal offices or through online portals.
Some luxury developments have additional folios for amenities like club memberships or recreational facilities, each generating separate IUSI obligations based on their assessed values.
What are the 2025 rates and rules for commercial, industrial, and vacant land in Guatemala City?
All real property in Guatemala City follows the same IUSI rate structure regardless of use type - residential, commercial, industrial, or vacant land all use identical progressive brackets.
Commercial properties, industrial facilities, and vacant land face the same 0.2% to 0.9% progressive rates applied to their cadastral values. A commercial building with Q2,000,000 assessed value would pay Q0 (first Q2,000) + Q36 (next Q18,000) + Q300 (next Q50,000) + Q17,541 (remaining Q1,930,000 × 0.9%) = Q17,877 annually.
Industrial properties follow identical calculations, though they often have higher cadastral values due to specialized construction and equipment. A manufacturing facility valued at Q3,000,000 would generate Q26,877 in annual IUSI using the same bracket system.
Vacant land receives no preferential treatment and pays full IUSI based on assessed land value. A developable lot worth Q500,000 would owe Q4,206 annually. Municipal authorities sometimes reassess vacant land more frequently to encourage development, potentially increasing tax obligations over time.
Unlike some countries, Guatemala City doesn't impose higher rates on non-residential properties or vacant land speculation taxes, making the IUSI system relatively straightforward across all property types.
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What payment schedule applies in 2025, what are the exact due dates, and are there early-payment discounts?
Guatemala City property owners can choose between quarterly installments or annual lump-sum payments for IUSI obligations.
Quarterly payments are due on March 31, June 30, September 30, and December 31 each year. Each installment equals 25% of the total annual IUSI amount. Annual payments are typically due by December 31, though some municipalities allow full-year payments as early as January for the following year.
Many municipalities offer early-payment discounts to encourage prompt payment and improve cash flow. Common discount structures include 5% reduction for payments made by March 31, covering the entire year. Some areas provide smaller discounts like 3% for payments by June 30 or 2% for payments by September 30.
Discount policies vary by municipality and may change annually, so property owners should verify current incentives when making payment decisions. Early-payment discounts typically apply only to properties with no outstanding balances from previous years.
Property owners choosing quarterly payments don't receive early-payment discounts but avoid large lump-sum obligations. Those with cash flow flexibility often benefit from annual payments with discount incentives, potentially saving hundreds of quetzales on higher-value properties.
What are the late fees, monthly interest rates, penalties, and collection steps for missed payments in 2025?
Guatemala City imposes significant penalties and interest charges on overdue IUSI payments, with costs escalating rapidly over time.
Monthly interest rates typically reach 1.5% per month on outstanding tax balances, compounding monthly without caps or maximum limits. A Q10,000 overdue tax bill grows to Q11,500 after one month, Q13,225 after two months, and Q15,209 after three months due to compounding effects.
Additional penalties may apply beyond monthly interest, including administrative fees for collection notices and legal proceedings. Properties with extended delinquencies face potential liens, preventing sales or refinancing until taxes are paid in full with accumulated interest and penalties.
Municipal collection procedures typically begin with written notices after payment due dates pass. Continued non-payment triggers formal collection proceedings, potentially including judicial procedures to recover outstanding amounts through property encumbrance or forced sale in extreme cases.
Property owners facing payment difficulties should contact municipal tax offices immediately to discuss payment plans or arrangements, as early communication may prevent some penalties and collection actions while preserving property rights.
What exemptions, reductions, or threshold relief exist in 2025, and how much do they cut the bill in Quetzales?
Guatemala City provides limited exemptions and reductions for IUSI, with most relief targeting specific property types rather than general homeowners.
The universal exemption covers the first Q2,000 of cadastral value for all properties, saving Q4 annually (Q2,000 × 0.2%). This minimal relief primarily benefits very low-value properties, as most residential properties exceed Q2,000 in assessed value.
Religious organizations, registered charities, and qualified NGOs often receive complete IUSI exemptions if they meet legal requirements and use properties exclusively for exempt purposes. Government properties typically enjoy exemptions, though some municipal properties may pay IUSI to other jurisdictions.
Guatemala City doesn't offer primary residence exemptions, senior citizen discounts, or income-based reductions common in other countries. Low-income homeowners receive minimal relief beyond the Q2,000 threshold exemption available to all property owners.
Properties used for qualified agricultural purposes within city limits may receive reduced assessments, though urban agricultural use is limited. Industrial properties promoting job creation sometimes negotiate tax incentives through separate economic development programs, but these aren't standard IUSI exemptions.
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What are the official ways to pay in 2025, what IDs or numbers do I need, and are there any service fees?
Guatemala City offers multiple convenient payment channels for IUSI and other property-related fees, with most methods requiring specific identification numbers.
Online municipal portals provide 24/7 payment access for properties registered in digital systems. Payments require your property account number (número de cuenta catastral or folio real) and taxpayer identification number (NIT). Many municipalities accept credit cards, debit cards, and bank transfers through their online platforms.
Authorized banks including Banco Industrial, G&T Continental, Banrural, and others accept IUSI payments at branch locations during business hours. Bank payments typically require the same property account and NIT numbers, plus valid identification documents. Some banks charge minimal processing fees, usually under Q10 per transaction.
Municipal offices accept payments in person during regular business hours, offering receipts and immediate confirmation of payment processing. In-person payments allow resolution of account discrepancies or questions about assessments while completing transactions.
Authorized payment kiosks and service centers throughout Guatemala City provide convenient locations for cash payments, particularly helpful for property owners who prefer avoiding bank visits. These locations typically charge small service fees but offer extended hours and neighborhood accessibility.
Beyond IUSI, what other recurring city charges tied to property apply in 2025, and how are they billed?
Property owners in Guatemala City face several additional recurring municipal charges beyond the primary IUSI tax.
Trash collection fees represent the most significant additional charge, typically ranging from Q240 to Q480 annually for residential properties depending on property size and location. These fees are usually billed quarterly along with IUSI statements or as separate municipal invoices. Commercial properties often pay higher trash collection fees based on business type and waste generation volumes.
Public lighting fees are generally included in monthly electricity bills rather than charged separately by municipal authorities. The national electricity company (EEGSA) collects these fees as part of utility billing, making them transparent line items on monthly statements.
Water and sewage services are provided by EMPAGUA (municipal water company) through separate monthly billing systems. While technically municipal services, these utilities operate independently from property tax collection and require separate payment arrangements.
Some neighborhoods with special municipal services like enhanced security or beautification programs may face additional assessment fees, though these are relatively uncommon and usually require property owner approval through neighborhood associations.
Fire services and emergency response are typically funded through general municipal revenues rather than separate property-based fees, unlike some other Central American cities that charge specific fire protection assessments.
Separate from annual ownership taxes, what taxes and stamps apply when buying or selling property in Guatemala City in 2025?
Property transactions in Guatemala City trigger different tax obligations depending on whether you're buying resale or new construction properties.
Resale property purchases require a 3% transfer stamp tax paid by buyers to the national tax authority (SAT). This tax applies to the full sale price and cannot be avoided or reduced through negotiation. Buyers also pay notary and legal fees typically around 1% of property value, plus minor registry fees for title transfer documentation.
New construction purchases face 12% VAT instead of the transfer stamp tax, paid by buyers to developers who remit it to SAT. VAT significantly increases transaction costs but provides warranty protections and sometimes includes appliances or furnishing packages. New property buyers still pay notary and legal fees plus registry costs.
For a Q1,000,000 resale property, buyers pay Q30,000 transfer stamp tax + Q10,000 notary/legal fees + Q1,500 registry fees = Q41,500 total transaction costs (4.15% of purchase price). For a Q1,000,000 new construction purchase, buyers pay Q120,000 VAT + Q10,000 notary/legal fees + Q1,500 registry fees = Q131,500 total transaction costs (13.15% of purchase price).
Sellers generally don't pay transaction taxes on property sales, though they may be responsible for capital gains taxes on profits if they're frequent property traders or real estate businesses. Individual homeowners selling personal residences typically avoid seller-side transaction taxes.
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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 Guatemala City's property tax structure helps investors make informed decisions about real estate purchases and ongoing ownership costs.
The progressive IUSI system, combined with significant differences between new and resale transaction costs, requires careful financial planning for successful property investment in Guatemala's capital city.
Sources
- Guatemala City Real Estate Market Analysis
- PWC Tax Summaries - Guatemala
- Dentons Global Tax Guide - Guatemala
- Global Property Guide - Guatemala Taxes
- BizLatinHub - Buying Property in Guatemala
- Latin Alliance - Guatemala Tax Obligations 2025
- Buying Land in Guatemala Guide
- Global Property Guide - Guatemala Buying Guide