Question 1

How much tax is paid when selling property in Guatemala?

Accepted Answer

A 3% transfer tax on the sale price, plus 10% income tax on the net capital gain.

Question 2

What expenses can be deducted from capital gains?

Accepted Answer

You can deduct the acquisition cost, documented improvements, notary fees, and the transfer tax.

Question 3

Who pays the transfer tax?

Accepted Answer

By law, the buyer pays the 3% transfer tax (alcabala), but in practice it can be negotiated.

Question 4

When is capital gains tax due?

Accepted Answer

Income tax on capital gains must be declared and paid within the month following the property sale.

Guatemala Capital Gains Calculator