Taxes when selling a property in Guatemala
Selling a property in Guatemala involves two main taxes: the 3% transfer tax (alcabala) on the sale value and 10% income tax (ISR) on the net capital gain (Decree 10-2012, Tax Update Law). This calculator estimates both so you know how much you actually keep when selling your house, land, or apartment.
If you bought at Q500,000 and sell at Q800,000, with Q50,000 in improvements and Q15,000 in notary fees:
- Transfer tax (3%): Q24,000
- Net gain: Q211,000
- Capital gains tax (10%): Q21,100
- Total taxes: Q45,100
- Net proceeds: Q754,900
Formula: net gain = 300,000 − 50,000 − 15,000 − 24,000 = Q211,000.
Formula
Gross gain = Sale price − Purchase price
Transfer tax = Sale price × 3%
Net gain = Gross gain − Improvements − Notary fees − Transfer tax
Capital gains tax = Net gain × 10%
Total taxes = Transfer tax + Capital gains tax
Step-by-step example (defaults)
- Purchase price: Q500,000; sale price: Q800,000
- Gross gain: 800,000 − 500,000 = Q300,000
- Transfer tax: 800,000 × 3% = Q24,000
- Deductions: Q50,000 (improvements) + Q15,000 (notary) + Q24,000 (transfer tax) = Q89,000
- Net gain: 300,000 − 89,000 = Q211,000
- ISR: 211,000 × 10% = Q21,100
- Total taxes: 24,000 + 21,100 = Q45,100 → net proceeds: Q754,900
Scenario table (same logic as the engine)
| Purchase | Sale | Improvements | Transfer 3% | Net gain | ISR 10% | Total taxes | Net proceeds |
|---|---|---|---|---|---|---|---|
| Q500,000 | Q800,000 | Q50,000 | Q24,000 | Q211,000 | Q21,100 | Q45,100 | Q754,900 |
| Q300,000 | Q400,000 | Q10,000 | Q12,000 | Q70,000 | Q7,000 | Q19,000 | Q381,000 |
| Q800,000 | Q1,200,000 | Q100,000 | Q36,000 | Q244,000 | Q24,400 | Q60,400 | Q1,139,600 |
| Q250,000 | Q400,000 | Q0 | Q12,000 | Q133,000 | Q13,300 | Q25,300 | Q374,700 |
Rates and tax base
| Item | Rate | Base | Default example | Who usually pays |
|---|---|---|---|---|
| Transfer tax (alcabala) | 3% | Sale price | Q24,000 | Buyer (negotiable) |
| Capital gains ISR | 10% | Net gain | Q21,100 | Seller |
| Estimated total | — | — | Q45,100 | Deal + seller |
Effective rate on gross gain
Transfer tax is charged on the sale price, not on the gain. When appreciation is small relative to property value, the effective rate (taxes ÷ gross gain) rises.
| Scenario | Gross gain | Total taxes | Effective rate | Quick read |
|---|---|---|---|---|
| Defaults Q500k→Q800k | Q300,000 | Q45,100 | 15.03% | Typical residential case |
| Moderate gain Q300k→Q400k | Q100,000 | Q19,000 | 19.00% | Transfer tax weighs more |
| Higher value Q800k→Q1.2M | Q400,000 | Q60,400 | 15.10% | Similar to base case |
| No improvements Q250k→Q400k | Q150,000 | Q25,300 | 16.87% | Fewer deductions |
Allowed deductions
- Acquisition cost: original purchase price documented in the deed.
- Improvements: renovations or expansions backed by invoices.
- Notary fees: deed and closing costs for the sale.
- Transfer tax: the 3% paid is deducted from the gain before applying the 10%.
How to read the result
Net proceeds is the number that matters: cash you keep after taxes. The effective percentage (taxes ÷ gross gain) is often around 15% in the default example, but rises when the gain is small versus the sale price because the 3% transfer tax is always due.
By law the buyer pays the transfer tax, but in practice it is negotiated and often reflected in the price. Include it in your negotiation so it is not a surprise.
This tool is an educational estimate of the general model (Decree 10-2012). It does not replace an accountant or notary: special cases exist (inheritances, gifts, company sales, exempt entities). Capital gains ISR is declared and paid within the month after the sale; confirm current forms and deadlines with SAT or your advisor.
Frequently asked questions
A 3% transfer tax on the sale price, plus 10% income tax on the net capital gain. In the calculator example (buy Q500,000, sell Q800,000), the total is Q45,100 and net proceeds are about Q754,900.
You can deduct the acquisition cost, documented improvements, notary fees, and the transfer tax. Improvements without invoices are not accepted as deductions.
By law, the buyer pays the 3% transfer tax (alcabala), but in practice it can be negotiated between the parties or reflected in the final price.
Income tax on capital gains must be declared and paid within the month following the property sale. Verify the current form and deadlines with SAT.
Related calculators
- IUSI Guatemala: annual property tax, separate from sale taxes
- ISR Guatemala: income tax regimes for business activity
- Guatemala mortgage: monthly payment if you buy with financing
- Rental yield: compare selling vs renting the property